FinCEN Section 314(a) and 314(b) Explained for CPAs and Their Clients

If a client's bank suddenly asks detailed questions, or closes an account without much explanation, one reason can be information sharing under section 314 of the USA PATRIOT Act. FinCEN, the US Treasury's Financial Crimes Enforcement Network, runs two programmes under that section: 314(a), which connects law enforcement with financial institutions, and 314(b), which lets financial institutions share information with each other. This guide explains both, based on FinCEN's own fact sheets, the Federal Reserve's supervisory letter on the June 2026 update, and a law firm summary of that update. CPA firms are not the parties who run these programmes, but understanding them helps you advise clients and manage expectations.

Section 314(a): law enforcement requests to institutions

FinCEN's 314(a) fact sheet, dated 29 December 2020, says the programme exists to help locate financial assets and recent transactions of subjects of criminal investigations. It says the programme provides lead information only and is not a substitute for a subpoena or other legal process. Federal, state, local and foreign (European Union) law enforcement agencies can submit requests through FinCEN, which sends notifications about every two weeks to designated contacts at financial institutions. The fact sheet states these reach more than 34,000 points of contact at more than 14,000 institutions.

When a request is posted, institutions must check accounts held by the named subject during the preceding 12 months and transactions from the last 6 months. They have two weeks from the posting date to report positive matches, and are told not to reply if there are none. The fact sheet does not address confidentiality or say which non-bank institutions are covered, so we do not describe those points.

Section 314(b): institutions sharing with each other

FinCEN issued an updated 314(b) fact sheet on 12 June 2026, replacing its December 2020 version. According to that fact sheet:

• Participation is voluntary. Financial institutions that must have an anti-money laundering programme under FinCEN rules, and associations of those institutions, are eligible. The examples it lists include banks, casinos and card clubs, money services businesses, broker-dealers, mutual funds, insurance companies, futures commission merchants, precious metals dealers, credit card system operators and loan or finance companies. The list does not mention accounting firms.
• Registration is through the FinCEN Financial Industry Portal. Before sharing, an institution must verify that the other party is also a registered participant, using the portal's directory.
• The safe harbor has conditions. Institutions must maintain adequate procedures to protect the security and confidentiality of shared information and use it only for permitted purposes.
• Permitted purposes include identifying and, where appropriate, reporting activity that may involve terrorist financing or money laundering, deciding whether to establish or maintain an account or to engage in a transaction, and assisting with AML compliance.
• Suspicious activity reports are excluded. Sharing a SAR, or information that reveals whether one exists, is prohibited. Institutions may, however, discuss a prospective or filed joint SAR among themselves.

What changed in June 2026

The main clarification is that the safe harbor extends to suspected fraud. A Clyde & Co article of 26 June 2026 explains the reasoning: section 314(b) and its regulations refer only to terrorist activity and money laundering, but the Bank Secrecy Act's definition of money laundering reaches fraud offences that are specified unlawful activity, so institutions may share information about suspected fraud. The fact sheet also says attempts to transact, and attempts to induce others into transactions, such as money mule schemes, may be shared, and gives examples such as transaction data, video footage, IP addresses, device identifiers and account decisions. The Federal Reserve's letter SR 26-3, dated 9 July 2026, highlights the guidance, notes it sets no new compliance obligations, and says FinCEN strongly encourages participation. The Fed links the update to industry feedback on its June 2025 request for information on payments fraud.

What this means for CPAs and their clients

These are our suggestions, offered as practical reading rather than legal advice.

1. Expect more joined-up bank checks. If a client's bank has shared information about suspected fraud with another bank, a client may find that account opening or maintenance decisions are affected. The fact sheet lists "deciding whether to establish or maintain an account" as a permitted purpose.
2. Do not ask a bank whether a SAR was filed. The prohibition on revealing a SAR's existence applies to institutions, and banks will not be able to confirm it.
3. Keep client records of source of funds ready. Prompt, documented answers to a bank's questions reduce friction. For how the checks work in practice, see our guide to customer due diligence in accountancy practices.
4. Know your own obligations. CPA firms have their own cash reporting and sanctions duties, covered in our guide to US AML requirements for CPAs, and beneficial ownership changes are covered in our guide to FinCEN's end of beneficial ownership reporting for US companies.

What we could not confirm

• Whether the 314(a) fact sheet has been updated since December 2020, or the current number of institutions reached.
• The text of the regulations at 31 CFR 1010.520 and 1010.540, which we did not read directly. The fact sheets cite them.
• Whether any state or professional rule gives CPAs a role in either programme. We found none in the sources we read.
• The 314(b) fact sheet does not mention an annual renewal or notification requirement, and we do not state one.

Frequently asked questions

Can my firm join 314(b)?

The fact sheet limits participation to financial institutions that must have an AML programme under FinCEN rules, and associations of them. Its list of examples does not include accounting firms.

Does 314(a) mean my client is under investigation?

Not necessarily. FinCEN describes the programme as providing leads, not as a substitute for legal process, and institutions only report matches to named subjects.

Can banks share fraud information?

Yes, according to the June 2026 fact sheet, which says the 314(b) safe harbor extends to suspected fraud that qualifies as a specified unlawful activity.

This guide is general information, not legal advice.