On June 12, FinCEN issued an updated fact sheet on how eligible financial institutions and associations may share information involving suspected fraud under section 314(b) of the USA PATRIOT Act. The fact sheet expands upon and replaces FinCEN’s December 2020 fact sheet, clarifying three main areas, among others: (i) the permissibility of real-time information sharing; (ii) under what circumstances information, including information related to fraud, may be shared; and (iii) how information may be shared. FinCEN stated that participation in section 314(b) information sharing is voluntary and provides a “safe harbor” from liability for eligible participants that share information to identify and, where appropriate, report activities that may involve money laundering or terrorist activity, including fraud and other specified unlawful activities.

The fact sheet states that fraud offenses are specified unlawful activities for money laundering offenses; accordingly, participating institutions may receive safe harbor protection for sharing fraud-related information when section 314(b)’s requirements are otherwise met. The fact sheet also states that institutions need not identify specific proceeds of fraud being laundered to receive the protections of the section 314(b) safe harbor. The fact sheet includes examples of information that may be shared, including: (i) video surveillance footage; (ii) cyber-related data such as IP addresses; and (iii) fraud indicators, including newly added payees followed by large transfers, multiple accounts with the same or similar identifying information, and login activity from geographically distant locations. FinCEN cautioned that section 314(b) does not authorize institutions to share suspicious activity reports or reveal their existence, and that shared information must be used only for permitted BSA/AML purposes.