On 12/10/2020, the Financial Crimes Enforcement Network (FinCEN) announced that Director Ken Blanco had provided guidance regarding 314(a) sharing. This guidance was provided through a speech presented by Director Blanco, a release by FinCEN and an updated Fact Sheet. In their release, FinCEN explains that they are providing three main clarifications as a result of industry feedback:
A financial institution may share information relating to activities that it suspects may involve possible terrorist financing or money laundering. Although this may include circumstances in which a financial institution has information about activities it suspects involve the proceeds of a specified unlawful activity (SUA), financial institutions do not need to have specific information that these activities directly relate to proceeds of an SUA, or to have identified specific laundered proceeds of an SUA. Nor do financial institutions need to have made a conclusive determination that the activity is suspicious in order to benefit from the statutory safe harbor. Further, 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. In addition, there is 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.
An entity that is not itself a financial institution under the Bank Secrecy Act may form and operate an association of financial institutions whose members share information under Section 314(b). Notably, this includes compliance service providers.
An unincorporated association governed by a contract among the group of financial institutions that constitutes its members may engage in information sharing under Section 314(b).
The FinCEN release can be found here.
A new Fact Sheet on 314(a) sharing can be found here.
Director Blanco’s prepared remarks can be found here.