“Section 314(b) of the USA PATRIOT Act is an important tool for combatting financial crime,” FinCEN Director Kenneth Blanco said at a recent conference during the American Bankers Association/American Bar Association Financial Crimes Enforcement Conference. “It provides financial institutions with the ability to share information with one another, under a safe harbor provision that offers protections from civil liability, in order to better identify and report potential money laundering or terrorist financing.”
After receiving feedback from the financial industry, FinCEN is providing three main clarifications in a new 314(b) Fact Sheet and rescinding previously issued guidance (FIN-2009-G002) as well as a former administrative ruling (FIN-2012-R006)
The new guidance states:
In addition, financial institutions may share information about activities as described, even if the activities do not constitute a “transaction.” This can include an attempted transaction, or an attempt to induce others to engage in such a transaction. This allows financial institutions to avail themselves of Section 314(b) information sharing to address incidents of fraud or cybercrime, and other predicate offenses, where appropriate.
There is also no limitation under Section 314(b) on the sharing of personally identifiable information, or the type or medium of information shared, to include sharing information verbally.
Financial institutions subject to an anti-money laundering program requirement under FinCEN regulations, and any qualifying association of such financial institutions, are eligible to share information under Section 314(b).
Although sharing information pursuant to Section 314(b) is voluntary, FinCEN said it strongly encourages financial institutions to participate to enhance their compliance with anti-money laundering/counter-financing of terrorism requirements.
Cover Story: