U.S. Department of the Treasury updates FinCEN guidance on sharing suspected fraud information under section 314(b)

The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network, issued updated guidance clarifying how financial institutions may share information with each other about suspected fraud under section 314(b) of the USA PATRIOT Act. The update makes clear that institutions can use the section 314(b) framework to exchange information on activity involving suspected fraud, money laundering, terrorist financing and other specified unlawful activities with any other financial institution eligible to participate in the program. The accompanying fact sheet gives examples of information that may be shared, including video surveillance footage, cyber-related data such as IP addresses, and fraud indicators such as newly added payees followed by large transfers, multiple accounts with the same or similar identifying information, and login activity from geographically distant places. Treasury linked the clarification to broader efforts to combat fraud and said information sharing under section 314(b) is an important part of its work with the federal banking agencies to modernize the U.S. anti-money laundering and countering the financing of terrorism regime so it is more risk-based and outcomes-focused.