Which term describes the act of complying with requests at the discretion of the institution?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Discretionary compliance describes the situation where an institution chooses whether to meet a request based on its own judgment. It means compliance isn’t mandated by law or policy in every instance, but rather can be granted or withheld at the institution’s discretion. This contrasts with mandatory compliance, where rules require action, and proactive compliance, where the institution initiates steps in anticipation of a need. Reactive compliance would involve responding after a request or issue arises, not because the institution chose to comply on its own terms. In this context, complying with requests at the institution’s discretion is exactly what discretionary compliance means.