Mortgage companies , money services businesses ( MSBs ), casinos , insurance companies , trust companies , mutual funds and others also participate . This means there is a wealth of opportunities to share with and learn from counterparts . To further illustrate the usefulness of sharing , FinCEN reported that in 2020 there were 17,384 suspicious activity reports ( SARs ) that referenced 314 ( b ) in the narrative and that 1,523 different institutions accounted for those references . 3 The number of unique institutions that have referenced 314 ( b ) has increased over time . However , this also means that in 2020 , less than 22 % of institutions that have agreed to share information referenced 314 ( b ) in a SAR filing .
While in many cases sharing may result in the filing of a SAR , the opposite can also be true . The additional information gained may clarify a transaction or set of transactions to alleviate concerns on the part of the institution that initiated the information-sharing request . Either way , the information sharing proves to be valuable .
Final suggestions
As covered in the previous article , 4 it is important to remember that FinCEN clarified their intent for the sharing program and removed the “ shackles ” many thought prohibited FIs from sharing in the first place . The guidance states that an FI does not need to have specific information indicating that financial activity is directly related to a specified unlawful activity or even reach a conclusion that the activity is suspicious in order to share and receive safe harbor . When conducted appropriately , there is little that the participating FIs cannot share .
With this being said , if you are a Bank Secrecy Act ( BSA ) officer or individual with the ability to decide how your institution handles 314 ( b ), you should take the following steps to better incorporate this powerful tool into your current processes .
1 . Incorporate 314 ( b ) as part of your current case review process . This can include anti-money laundering reviews as well as fraud reviews . This may involve the individual working on the cases determining if 314 ( b ) would potentially provide beneficial information .
2 . Have a second layer of review to determine if 314 ( b ) should have been utilized when reviewing cases . Even if time constraints dictate you must take action , case information gained could be used to amend a previous report or as valuable information in the subsequent review .
3 . Have a designated individual ( s ) assigned to respond to any incoming inquiries .
4 . After responding to any inquiries , conduct an internal review of the individual or entity in question for your own determination .
A large part of the responsibility of the BSA department at any FI is to conduct thorough reviews so that prudent decisionmaking can occur . For those decisions that necessitate the filing of a SAR , the narrative provided to law enforcement should be as concise as possible with as much pertinent information as is available . The 314 ( b ) form provides an opportunity to enhance reviews to do just that . Any FI that decides to actively participate should be encouraged to share information so that everyone gains from the process . Do not get discouraged by those outgoing inquiries that go unanswered and continue to engage willing partners to improve your reviews and SAR filings .
Carl Francois , senior vice president , BSA and fraud officer , Southern First Bank , 1
Carl Francois , “ Information Sharing : Why Community Banks Should Participate ,” ACAMS Today March-May ’ 23 , March 10 , 2023 , https :// www . acamstoday . org / information-sharing-why-community-banksshould-participate /
2
“ Information Sharing Insights : 314 ( b ) Participating and Reporting ,” Financial Crimes Enforcement Network , https :// www . fincen . gov / sites / default / files / shared / 314 ( b )% 20Infographic % 20- % 20 Participation % 20and % 20Reporting % 20CY2020 . pdf
3
Ibid .
4
Carl Francois , “ Information Sharing : Why Community Banks Should Participate ,” ACAMS Today March-May ’ 23 , March 10 , 2023 , https :// www . acamstoday . org / information-sharing-why-community-banksshould-participate /
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