FinCEN Issues New Guidance on Section 314(b) Information Sharing

FinCEN’s June 12, 2026 guidance clarifies that the section 314(b) safe harbor under the USA PATRIOT Act allows financial institutions to share information about suspected fraud.

On June 12, 2026, the Financial Crimes Enforcement Network (FinCEN) released new guidance clarifying the scope of section 314(b)¹ of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act or the Act). The June 12th guidance (the Fact Sheet) states section 314(b)’s “safe harbor,” which permits financial institutions to voluntarily share information regarding certain suspected unlawful activity, extends to suspected fraud. The Fact Sheet also provides guidance on the circumstances in which information regarding fraud may be shared, examples of the types of information related to fraud that may be shared, and how such information can be shared.

The USA PATRIOT Act was passed in October 2001 to strengthen national security and aid law enforcement in its fight against terrorism². Section 314(b) of the Act and its implementing regulations enable financial institutions to share information with one another regarding suspected money laundering or possible terrorist activity by establishing a safe harbor from liability, provided that certain requirements are met and that the financial institutions have registered with FinCEN. Although the text of the Act and its implementing regulations include only “possible terrorist activity or money laundering”³  in the information that they may share, the new Fact Sheet clarifies that the safe harbor extends to information about suspected fraud. 

The Fact Sheet explains that money laundering, as defined in the Bank Secrecy Act (BSA), includes knowingly conducting or attempting to conduct a financial transaction with proceeds from a specified unlawful activity (SUA) intended to promote the SUA⁴.  The definition of SUA, in turn, includes a range of fraud offenses. As such, section 314(b) permits a financial institution that suspects fraudulent activity to share information about that activity with other financial institutions.

The Fact Sheet further clarifies that, with the exception of certain information related to suspicious activity reports (SARs), neither section 314(b) nor its implementing regulations impose restrictions on the types of information that financial institutions may share. Institutions may accordingly share, for example, video surveillance footage, account and transaction data, and other personally identifying information. The Fact Sheet reiterates that section 314(b) does not change the BSA’s prohibition against disclosing a SAR or information that would reveal the existence or nonexistence of a SAR. It notes, however, that financial institutions sharing information pursuant to section 314(b) may discuss whether to file a joint SAR and its contents. 

FinCEN also clarified that financial institutions participating in 314(b) sharing can share information by any means (in writing, verbally, electronically, etc.), as long as the information security measures specified in section 314(b)’s implementing regulations are followed and the sending and receiving institutions are both registered with FinCEN in the 314(b) program. 

Finally, FinCEN added guidance about when and how domestic financial institutions can share information with foreign financial institutions, especially foreign subsidiaries and affiliates. The Fact Sheet notes that 314(b) generally applies only to financial institutions within the United States but may also apply to a foreign financial institution if that financial institution is required under the BSA to establish and maintain an anti-money laundering program. 

This specific aspect of the Fact Sheet builds upon guidance FinCEN issued in 2025 to promote voluntary cross-border information sharing between US and foreign financial institutions outside of section 314(b) (the Cross-Border Guidance). The Cross-Border Guidance explained that while the BSA prohibits the disclosure of a SAR or information that would reveal the existence or nonexistence of a SAR, the BSA does not prohibit sharing the underlying facts, transactions, and documents on which a SAR is based. Nor does the BSA prohibit sharing information with foreign financial institutions. Noting the importance of robust information flows in the fight against financial crime, the Cross-Border Guidance accordingly encouraged US financial institutions to engage in appropriate information sharing with their foreign counterparts. Yet, as cautioned in the Fact Sheet, a financial institution that has received information pursuant to section 314(b) may share such information with a foreign financial institution, such as a foreign affiliate or subsidiary, solely for the purposes identified in section 314(b)’s implementing regulations. It further cautions that such information sharing would not be protected by section 314(b)’s safe harbor unless the recipient foreign financial institution is also a financial institution as defined under the implementing regulations.

Key takeaways

FinCEN’s guidance signals its desire to broaden the 314(b) safe harbor and encourage information sharing, both domestically and across borders. These directives advance the fight against illicit financial activity and permit participating financial institutions to take a more proactive approach to protecting their customers (and themselves) from ongoing financial misconduct. Importantly, however, the guidance does not change existing regulations that prohibit financial institutions from disclosing the existence or non-existence of a SAR. Financial institutions should consider evaluating whether their policies and procedures establish controls for information sharing that adequately address the limitations of section 314(b), including maintaining confidentiality over SARs, particularly where sharing such information revealing the existence of a SAR is permitted by other regimes (in certain circumstances), including pursuant to the UK’s Proceeds of Crime Act 2002 (POCA). Financial institutions sharing information outside of the 314(b) context should also consider the exposure to and obligations under other US laws (such as the Gramm-Leach-Bliley Act). Those sharing information internationally in either circumstance, both within or outside of the 314(b) context, should consider assessing the impact of foreign laws, such as the POCA, whose application is wider than the BSA and extends beyond financial institutions to all within the UK’s jurisdiction.  

1.  USA PATRIOT Act, Pub. L. No. 107-56, 115 Stat. 272 (Oct. 26, 2001), § 314(b). 31 C.F.R. § 1010.540(b).
2.  Fin. Crimes Enf’t Network, U.S. Dep’t of the Treasury, USA PATRIOT ACT, https://www.fincen.gov/resources/statutes-and-regulations/usa-patriot-act (last visited June 24, 2026).
3. USA PATRIOT Act, Pub. L. No. 107-56, 115 Stat. 272 (Oct. 26, 2001), § 314(b); 31 C.F.R. § 1010.540 (b)(1).  
4. See also 18 USC § 1956(a)(1).