FinCEN Expands Guidance on Fraud Information Sharing Among Financial Institutions
By CU Today Staff —
WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) has issued updated guidance clarifying how financial institutions can share information about suspected fraud under Section 314(b) of the USA PATRIOT Act, a move officials said is intended to strengthen efforts to combat financial crime.
The guidance makes clear that financial institutions may share information related to suspected fraud, money laundering, terrorist financing and other specified unlawful activities with any other institution eligible to participate in the Section 314(b) program. Treasury said the clarification is designed to help institutions identify and disrupt illicit activity more quickly.
“Americans lose hundreds of billions of dollars to fraud each year,” Treasury Secretary Scott Bessent said in a statement.
He noted that financial institutions are often the first to detect suspicious activity and need tools that allow them to share information that can help prevent fraud from spreading.
FinCEN’s accompanying fact sheet outlines examples of information that may be shared, including video surveillance footage, cyber-related data such as IP addresses, and fraud indicators including newly added payees followed by large transfers, multiple accounts using similar identifying information, and account logins originating from geographically distant locations.
Treasury said the guidance supports the Administration’s broader anti-fraud efforts through the White House Task Force to Eliminate Fraud, led by Vice President JD Vance. FinCEN added that information sharing under Section 314(b) remains a key component of efforts to modernize the nation’s anti-money laundering and counter-terrorist financing framework, allowing institutions to focus resources on higher-risk activities while strengthening national and economic security.
Originally reported by CU Today.