BLOG

Question: Are we allowed to share information about SAR filings with other financial institutions?

Answer:

Section 314(b) of the USA PATRIOT Act permits, but does not require, financial institutions (including mortgage companies subject to the Bank Secrecy Act) to share information with one another in order to better identify and report potential money laundering, fraud, or terrorist financing. Note, this does not permit a financial institution to share SARs or reveal their existence, although it does permit filing SARs jointly. Section 314(b) does not otherwise impose restrictions on the types of information that may be shared or how it may be shared provided it is shared securely. In a recent 314(b) Fact Sheet, FinCEN advised:

“Financial institutions … could share, for example, transaction information; video surveillance footage; cyber-related data (such as IP addresses and geolocations); device identification numbers; decisions related to account creation, maintenance, closure, or services (and related research and analytical materials); transaction monitoring system alerts; and indicators that activity may be suspicious, including newly added payees followed by large transfers, multiple accounts with the same or similar identifying information, and login activity from geographically distant locations.

Financial institutions … may share information in writing or verbally, as well as through electronic platforms. Sharing may occur between one financial institution … or financial institutions … may share information within a group of participating financial institutions…”

The Fact Sheet includes specific detail on how financial institutions may participate in the voluntary section 314(b) information sharing program. Banks, credit unions, and mortgage companies should ensure their written AML policies address Section 314(b) information sharing and whether the entity opted to participate in the program.