Guidance on the Scope of Permissible Information Sharing Covered by Section 314(b) Safe Harbor of the USA PATRIOT Act

The Financial Crimes Enforcement Network (“FinCEN”) is issuing this interpretive guidance to clarify the application of the rule implementing section 314(b) (the “314(b) rule”)1 of the USA PATRIOT Act (the “Act”).2 Specifically, this guidance clarifies that a financial institution participating in the section 314(b) program may share information relating to transactions that the institution suspects may involve the proceeds of one or more specified unlawful activities (“SUAs”) and such an institution will still remain within the protection of the section 314(b) safe harbor from liability.
Section 314(b) permits two or more financial institutions and any association of financial
institutions to “share information with one another regarding individuals, entities, organizations, and countries suspected of possible terrorist or money laundering activities.”3
Section 314(b) establishes a safe harbor from liability for a financial
institution or an association of financial institutions that voluntarily chooses to share information with other financial institutions for the purpose of identifying and, where appropriate, reporting possible money laundering or terrorist activity.4 To avail itself of the section 314(b) safe harbor, a financial institution must comply with the requirements of the implementing regulation, including provision of notice to FinCEN, taking reasonable steps to verify that the other financial institution has submitted the requisite notice, and restrictions on the use and security of information shared.5 31 CFR § 103.110. Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 (“USA PATRIOT Act”) Pub. L. No. 107-56, 115 Stat. 272 (2001). Pub. L. No. 107-56, § 314(b). Consistent with the broad intent underlying section 314(b) of the Act, the 314(b) rule defines “money laundering” by reference to sections 1956 and 1957, Title 18, United States Code, which in turn include the conducting of a transaction involving the proceeds of a specified unlawful activity. 31 CFR § 103.110(b)(5). 31 CFR § 103.110(b)(2)-(b)(4). GUIDANCE This document has been rescinded. FIN-2009-G002 Issued: June 16, 2009 Subject: Guidance on the Scope of Permissible Information Sharing Covered by
Section 314(b) Safe Harbor of the USA PATRIOT Act