On September 5, FinCEN, in consultation with the FDIC, NCUA and the OCC, issued guidance to encourage the voluntarily cross-border sharing of information among financial institutions. The guidance also encouraged appropriate foreign affiliates and financial institutions to share how financial institutions combat money laundering, terrorist financing, and other illicit finance activities. The guidance clarified that while “the BSA prohibits the disclosure of suspicious activity reports (SAR) or information that would reveal the existence or non-existence of a SAR … [t]he BSA does not otherwise prohibit sharing [t]he underlying facts, transactions, and documents upon which a SAR is based.” It also advised that financial institutions should consider their risk profile, relationship with the foreign financial institution, relevant obligations arising under other U.S. legal authorities, and other relevant information available to the financial institution when considering the voluntary cross-sharing of information. In addition, the guidance outlined steps institutions should take to protect SAR confidentiality and respond to requests for SAR-related information.
FinCEN emphasized that voluntary cross-border information sharing could help financial institutions “form a more complete picture of threats, risks, and vulnerabilities” in the global financial system. Finally, FinCEN encouraged financial institutions to review the guidance and consider how enhanced information sharing can strengthen their programs related to anti-money laundering and combating the financing of terrorism.
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