FinCEN expands Section 314(b) safe harbour to cover real-time fraud information sharing
AML teams at BSA-regulated institutions can share fraud indicators in real time under the 314(b) safe harbour only if registered and verifying the counterpart is a registrant
Change
On 12 June 2026 the Financial Crimes Enforcement Network (FinCEN) issued an updated Section 314(b) Fact Sheet, replacing its December 2020 guidance, clarifying that financial institutions may share information in real time and may share fraud-related information under the safe harbour because fraud offences are specified unlawful activities for money laundering.
Why it matters
The updated fact sheet expands the December 2020 version on two points: information sharing under section 314(b) may occur in real time, and fraud-related information is within scope because fraud offences are specified unlawful activities for money laundering, so an institution need not trace specific fraud proceeds to rely on the safe harbour. A registered participant may also share with another registered participant absent any existing relationship to the subject. The safe harbour remains conditional: registration via the FI Portal, verification that the counterpart is a registrant, confidentiality safeguards, and AML/CFT-only use. The SAR-disclosure prohibition is unchanged; joint SARs remain permitted.
Implications
- — To rely on the section 314(b) safe harbour for sharing fraud or other SUA-related information, a BSA AML-program institution (banks, casinos and card clubs, money services businesses, brokers or dealers in securities, mutual funds, insurance companies, futures commission merchants and introducing brokers, dealers in precious metals or stones, credit card system operators, loan or finance companies, and housing GSEs) must register through FinCEN's FI Portal — information shared without registration falls outside the safe harbour.
- — Before sharing, the institution must take reasonable steps to verify the counterpart is also a 314(b) registrant — sharing with a non-registrant removes the liability protection for that exchange.
- — The institution must maintain procedures to safeguard the confidentiality of shared information and use it only for identifying or reporting money laundering or terrorist financing (including fraud as an SUA) and related account or transaction decisions, and must not disclose a SAR or reveal its existence — failing the use-and-security conditions removes the safe harbour and risks breaching SAR confidentiality rules.
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