Updated guidance on how financial institutions are permitted to share information with each other regarding suspected fraud was issued by Treasury’s financial crimes enforcement arm under the USA PATRIOT Act.
The Financial Crimes Enforcement Network (FinCEN) on Friday released a new fact sheet on section 314(b) of the act. That section provides financial institutions a safe harbor from liability related to their sharing of information with other institutions regarding activities that may involve money laundering or terrorist activities.
FinCEN said the fact sheet further clarifies: (1) the permissibility of real-time information sharing under that section; (2) under what circumstances information, including related to fraud, can be shared; and (3) how information can be shared.
The fact says financial institutions, and associations of financial institutions, “may rely on the safe harbor provided by section 314(b) to share information with one another regarding individuals, entities, organizations, and countries for purposes of identifying and, where appropriate, reporting activities that may involve possible terrorist activity or money laundering”; it notes this may include information about fraud and other specified unlawful activities (SUAs).
It said the new fact sheet expands upon and replaces FinCEN’s December 2020 fact sheet.
FinCEN Issues Guidance to Help Financial Institutions Eliminate Fraud Through Information Sharing
Leave a Reply