FinCEN Section 314(b): Information Sharing Between Institutions

Money launderers and fraudsters rarely stay with one bank. Section 314(b) of the USA PATRIOT Act lets financial institutions share information with each other, under a legal safe harbour, to spot and report possible money laundering or terrorist activity. In June 2026, FinCEN published an expanded fact sheet that, among other things, makes clear that suspected fraud can fall within the safe harbour. This guide summarises that fact sheet, which FinCEN says replaces its December 2020 version. For how a bank handles reporting afterwards, see our guide to the bank SAR rule.

What section 314(b) allows

According to FinCEN, financial institutions, and associations of financial institutions, can share information with each other under a liability safe harbour to identify and, where appropriate, report possible money laundering or terrorist activity. Participation is voluntary. The 2026 fact sheet explains that fraud and other specified unlawful activities can qualify as money laundering, that an institution does not need to identify the specific proceeds of fraud for the sharing to be covered, and that sharing can cover attempted transactions and money mule schemes.

Who can take part

Participants are financial institutions that are subject to an anti-money laundering program requirement under FinCEN rules, and associations of them. The fact sheet gives examples that include banks, casinos and card clubs, money services businesses, broker-dealers, mutual funds, insurance companies, futures commission merchants and introducing brokers, dealers in precious metals and stones, credit card system operators, loan or finance companies and housing government-sponsored enterprises. A non-BSA entity such as a compliance services provider may form and operate an association, and unincorporated associations based on contracts are also allowed if all members are financial institutions.

Registration and checking the other party

An institution must submit a 314(b) registration through FinCEN's FI Portal after obtaining portal access. FinCEN says registrations are processed automatically and an acknowledgement letter can be generated. To benefit from the safe harbour, a participant must be registered, must take reasonable steps to verify that the institution it shares with is also registered, and must follow the use and security requirements in 31 CFR 1010.540(b)(4). The portal includes a searchable directory for the verification step.

What can be shared, and what it can be used for

FinCEN says the Bank Secrecy Act does not restrict sharing personally identifiable information, and that, apart from SARs, there are no restrictions on the types of information shared. Its examples include transaction data, video footage, cyber data, device identifiers, account decisions, monitoring alerts and risk indicators. Sharing can be in writing, verbally or electronically, including in real time.

Shared information may be used only to identify and report possible terrorist financing or money laundering (including fraud), to decide whether to open or maintain an account or engage in a transaction, and to help meet AML requirements. Participants must keep adequate procedures to protect the security and confidentiality of what they receive.

Why the 2026 clarification matters

According to a Clyde & Co summary of the guidance, the statute and regulations originally mentioned only money laundering and possible terrorist activity, and FinCEN reasoned that the Bank Secrecy Act definition of money laundering reaches the proceeds of specified unlawful activities, a list that includes many fraud offences. The practical effect is that an institution trying to trace a scam, a mule account or an attempted transaction has a clearer basis for contacting a peer institution. The same commentary notes that sharing outside the 314(b) context can raise obligations under other US laws, so firms should not treat the safe harbour as covering every disclosure. For the monitoring side of the picture, see our guide to transaction monitoring and adverse media screening.

SAR confidentiality still applies

Section 314(b) does not permit an institution to share a SAR or to reveal that one exists. Institutions may share the underlying information that could lead to a SAR. Where institutions are considering or have filed a joint SAR, they may discuss it and share its contents with each other.

Cross-border sharing

FinCEN says sharing with foreign affiliates is limited. Information received under 314(b) can be passed to a foreign affiliate only for the permitted purposes, and that onward sharing carries no safe harbour unless the recipient is itself an eligible financial institution. Anyone working across borders should also consider local laws, because rules outside the United States may treat sharing and disclosure differently. Our overview of US AML requirements for CPAs sets out where accounting firms sit in the US framework.

What this means for accountants: our suggestions

These points are our suggestions, not requirements. If you advise banks, fintechs or payment firms, check whether a client participates and how it handles shared information, because that affects its alerts and file notes. If you support a client's investigation work, keep SAR-related material separate from other working papers and limit who can see it. Do not assume an accounting practice can use section 314(b) directly; confirm eligibility from the rule itself.

What we could not confirm

We read the FinCEN fact sheet and a law firm summary of it, but not the text of 31 CFR 1010.540 itself. The fact sheet as we read it did not state how long a registration lasts. We did not see accountancy firms named among its examples of eligible institutions, but because the list is introduced as examples, we cannot say whether any accounting business could qualify. We did not review FinCEN's 2025 cross-border guidance. This post is general information, not legal advice.