Money launderers deploy a host of tactics to throw AML specialists off the trail, from investing in businesses and real estate to leveraging complex financial instruments. Often, they move funds between multiple institutions or multiple accounts to obscure suspicious behavior and evade detection.

In the constant fight to protect your institution and its clientele, remember that you’re not alone. Section 314(b) under the USA PATRIOT Act paved the way for institutions to share information under a safe harbor that offers protection from civil liability. Thanks to subsequent guidance—including the December 2020 fact sheet that broadened the provision—314(b) remains one of the most effective tools for identifying and reporting potential money-laundering or terrorist-financing activity.

Here’s a quick refresher, followed by an overview of the updates and reasons you should register if you haven’t already.

FinCEN 314(b) in a Nutshell

Section 314(b) established a communication channel between financial institutions to investigate suspicious or unlawful transaction activity. If one institution suspects money laundering or terrorist financing, it can contact others in the money trail, share relevant information and decide on next steps—all under the statute’s liability protection.

Key Provisions: In addition to rescinding earlier guidance (FIN-2009-G002) and (FIN-2012-R006), which established the initial scope of 314(b), the December 2020 update strengthened the provision by broadening the safe harbor and applicable sharable information.

• Information Sharing: While the sharable suspicious activity may involve a specified unlawful activity (SUA) or even be submitted in a suspicious activity report (SAR), institutions do not need a conclusive determination to benefit from the safe harbor. Nor must the activities in question constitute a “transaction.” Instead, information sharing requires a reasonable basis to believe that the information shared supports AML/CFT.
• A Wider Network: Eligible participants in the program extend beyond BSA-defined financial institutions, to include money services businesses, insurance companies, compliance service providers and (as of a 2024 final rule) SEC-registered and exempt-reporting investment advisors.

FinCEN’s 314(b) Fact Sheet lists eligible participants and examples of shareable information. Although participation in Section 314(b) is voluntary, it bolsters institutions’ AML program by facilitating quick and efficient collaboration.

Why You Should Register for 314(b) Information Sharing

Combating organized crime and global terrorism demands constant vigilance. Participating in the 314(b) communication network enhances your AML efforts and can save your institution thousands of dollars each time suspicious transactions are thwarted. Plus, the communication line works both ways, allowing peer organizations to reach out and notify you of potential problems and risk factors.

Speed is key when it comes to stopping suspicious transactions. Institutions not registered for section 314(b)’s safe harbor risk failing to detect criminal activity in time. By joining the expanded 314(b) network, you can rapidly connect with the right contacts at other organizations, enabling quicker responses to potential threats. Without registration, quickly identifying and reaching the appropriate person at another institution can become unnecessarily difficult.

FinCEN’s Fact Sheet further enumerates the benefits. Registering for the information-sharing program makes it easier for you to:

• Gain a more holistic view: By working with the network, you gain a better perspective of activities potentially related to money laundering or terrorist financing. Knowledge of previously unknown accounts and activities enables due diligence and precise decision making. Also, money launderers can less effectively conceal the source of their money with multiple accounts and transactions or exploit bookkeeping tricks.
• Work with other institutions to aid AML/CFT: Your financial institution can generally see only one side of a transaction. Information sharing makes it easier for institutions to remain vigilant.
• Strengthen Suspicious Activity Reports: With access to a broader array of account, transaction, identity and other information pertinent to AML/CFT, you can file more comprehensive SARs and make efficient reporting decisions.

How to Register Today

FinCEN migrated the Section 314 programs to its Financial Institution (FI) Portal in May 2024, retiring the old Secure Information Sharing System (SISS) URLs. Institutions should now submit their Section 314(b) Certification here.

Once registered through the FI Portal, you can download the current participant list. FinCEN recommends safeguarding any information received and using it solely for AML/CFT purposes—such as deciding whether to file a SAR or open an account.

You’re Not Alone in the AML/CFT Fight

314(b) is a simple way to help protect your institution and account holders from falling victim to suspicious activity. Registration is free and takes as few as 24 to 48 hours. While not required, institutions should consider registering at least one employee to access the safe harbor.

Remember: you’re not alone in the fight against money laundering and terrorist financing. In conjunction with a robust AML program, 314(b) can ensure criminals have nowhere to hide. Check out our BSA/AML White Paper for more insight into the changing AML landscape.

Read the white paper