FinCEN Clarifies The Scope Of Section 314(b) Information Sharing Includes Fraud

Overview

On June 12, 2026, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released an updated Section 314(b) Fact Sheet (Fact Sheet) clarifying the scope of voluntary information sharing under Section 314(b) of the USA PATRIOT Act. Under Section 314(b), participating financial institutions or associations of financial institutions (generally, FIs) may share information “regarding individuals, entities, organizations, and countries” with other FIs that have registered to participate in the Section 314(b) program in order to assist with identifying or reporting activities suspected of involving terrorist activity or money laundering. FIs sharing information consistently with Section 314(b) and its implementing regulations are shielded from liability for such information sharing and for failing to provide notice of such sharing to any individual, entity, or organization identified in such shared information. The Fact Sheet does not address the mandatory Section 314(a) program.

In depth

FIs may share information relating to suspected fraud

FIs have historically been hesitant to share fraud-related information pursuant to Section 314(b) because of concerns relating to the scope of the Section 314(b) program and confidentiality. The Fact Sheet now clarifies that FIs may share such information relating to possible fraud and qualify for Section 314(b)’s safe harbor when doing so. Under Section 314(b), FIs may exchange information about activities involving possible money laundering, which includes certain transactions involving the proceeds of “specified unlawful activity” (SUA). Because SUAs include various predicate crimes, such as fraud offenses, FinCEN has taken the position that Section 314(b) permits the disclosure of information relating to transactions potentially involving the proceeds of fraud or transactions furthering or concealing fraudulent schemes. Notably, FIs need not identify the specific proceeds of fraud being laundered to trigger Section 314(b)’s protections – a suspicion of fraud is sufficient.

Section 314(b) does not impose restrictions on how, or what, information is shared

FinCEN’s updated guidance also confirms that Section 314(b) generally does not limit how or what information may be shared, so long as the requirements of the statute and its implementing regulations are satisfied. The Fact Sheet explicitly states that FIs may generally share information:

• That is personally identifying.
• Related to activities that do not constitute “transactions,” such as attempts to engage in transactions.
• In real time as an activity is occurring.
• In any format, including verbally, in writing, or through electronic platforms.
• Regardless of type, including surveillance footage, transaction monitoring system alerts, and cyber-related data.

FinCEN reiterated that participants in Section 314(b) information sharing are still prohibited from disclosing a suspicious activity report (SAR) or any information that would reveal the existence of a SAR, although participants in a proposed or actual joint SAR may discuss it and share its contents.

Information shared pursuant to Section 314(b) does not need to relate to a specific customer, account, or transaction of the receiving FI

While an FI may receive information pertaining to one of its existing customers, accounts, or transactions under Section 314(b), the implementing regulations also contemplate an FI using information to “[d]etermin[e] whether to establish or maintain an account, or to engage in a transaction.” As such, the Fact Sheet confirms that an FI may share information with another FI despite having no reason to believe the information relates to existing customers, accounts, or transactions of the recipient.

FIs may share information with foreign financial institutions in certain situations

Building on prior guidance issued on September 5, 2025 discussing cross-border information sharing, FinCEN clarified the circumstances in which Section 314(b)’s safe harbor applies to the disclosure of information to certain foreign FIs, including foreign affiliates and subsidiaries. FIs may share information with such foreign entities under Section 314(b) in limited situations where the recipient is an FI under 31 U.S.C. § 5312(a)(2) and subject to the anti-money laundering program requirements of 31 U.S.C. § 5318(h)(1). However, FIs should consider other applicable legal obligations before sharing information with foreign FIs, including those arising under the Right to Financial Privacy Act, the Gramm-Leach-Bliley Act, and applicable state laws. Additionally, FIs must take reasonable steps to verify that the receiving FI has registered to participate in the Section 314(b) program.

Fraud as a national priority

Information sharing under Section 314(b) is an additional tool that FIs now have to address the government’s increasing focus on fraud. On January 8, 2026, the government announced the creation of the Department of Justice’s division for national fraud enforcement, which is responsible for leading the department’s efforts to investigate, prosecute, and remedy fraud. Two executive orders signed in March 2026 (Combatting Cybercrime, Fraud, and Predatory Schemes Against American Citizens and Establishing the Task Force to Eliminate Fraud) also target fraud. Those executive orders follow FinCEN’s previously issued Anti-Money Laundering and Countering the Financing of Terrorism National Priorities, initially published in 2021, which identify combatting fraud as a national priority.

Compliance takeaways

The Fact Sheet provides FIs with significant clarification on the scope of Section 314(b) information sharing, particularly regarding the permissibility of sharing fraud-related information. In addition to offering increased information-sharing opportunities for FIs participating in the Section 314(b) program, this guidance confirms that information may be shared regardless of whether it pertains to existing customers, accounts, or transactions of the recipient. Although the Section 314(b) program is voluntary, it remains to be seen whether examiners will expect that FIs are using Section 314(b) to combat fraud, particularly given the government’s focus on fraud. FIs should consider these clarifications, as well as the entire Fact Sheet, when assessing their potential or continued participation in the Section 314(b) program.