(a) Definitions. For purposes of this section:
(1) Financial
institution.
(i) Except as provided in paragraph
(a)(1)(ii) of this section, the term “financial institution” means
any financial institution described in 31 U.S.C. 5312(a)(2) that is
required under this chapter to establish and maintain an anti-money
laundering program, or is treated under this chapter as having satisfied
the requirements of 31 U.S.C. 5318(h)(1).
(ii) For purposes of this section, a
financial institution shall not mean any institution included within
a class of financial institutions that FinCEN has designated as ineligible
to share information under this section.
(2) Association of financial institutions
means a group or organization the membership of which is comprised
entirely of financial institutions as defined in paragraph (a)(1)
of this section.
(b) Voluntary information sharing among financial
institutions.
(1) In general. Subject to paragraphs (b)(2), (b)(3), and (b)(4) of this section,
a financial institution or an association of financial institutions
may, under the protection of the safe harbor from liability described
in paragraph (b)(5) of this section, transmit, receive, or otherwise
share information with any other financial institution or association
of financial institutions regarding individuals, entities, organizations,
and countries for purposes of identifying and, where appropriate,
reporting activities that the financial institution or association
suspects may involve possible terrorist activity or money laundering.
(2) Notice requirement. A financial institution
or association of financial institutions that intends to share information
as described in paragraph (b)(1) of this section shall submit to FinCEN
a notice described on FinCEN’s Internet Web site, http://www.fincen.gov.
Each notice provided pursuant to this paragraph (b)(2) shall be effective
for the one year period beginning on the date of the notice. In order
to continue to engage in the sharing of information after the end
of the one year period, a financial institution or association of
financial institutions must submit a new notice. Completed notices
may be submitted to FinCEN by accessing FinCEN’s Internet Web site,
http://www.fincen.gov., and entering the appropriate information as
directed, or, if a financial institution does not have Internet access,
by mail to: FinCEN, P.O. Box 39, Vienna, VA 22183.
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(3) Verification requirement. Prior to sharing information as described
in paragraph (b)(1) of this section, a financial institution or an
association of financial institutions must take reasonable steps to
verify that the other financial institution or association of financial
institutions with which it intends to share information has submitted
to FinCEN the notice required by paragraph (b)(2) of this section.
A financial institution or an association of financial institutions
may satisfy this paragraph (b)(3) by confirming that the other financial
institution or association of financial institutions appears on a
list that FinCEN will periodically make available to financial institutions
or associations of financial institutions that have filed a notice
with it, or by confirming directly with the other financial institution
or association of financial institutions that the requisite notice
has been filed.
(4) Use and security of information.
(i) Information
received by a financial institution or an association of financial
institutions pursuant to this section shall not be used for any purpose
other than:
(A) Identifying and, where appropriate, reporting
on money laundering or terrorist activities;
(B) Determining whether to establish or maintain
an account, or to engage in a transaction; or
(C) Assisting the financial institution in
complying with any requirement of this chapter.
(ii) Each financial
institution or association of financial institutions that engages
in the sharing of information pursuant to this section shall maintain
adequate procedures to protect the security and confidentiality of
such information. The requirements of this paragraph (b)(4)(ii) shall
be deemed satisfied to the extent that a financial institution applies
to such information procedures that the institution has established
to satisfy the requirements of section 501 of the Gramm-Leach-Bliley
Act (15 U.S.C. 6801), and applicable regulations issued thereunder,
with regard to the protection of its customers’ nonpublic personal
information.
(5) Safe harbor from certain liability.
(i) In general. A financial institution or association of financial institutions
that shares information pursuant to paragraph (b) of this section
shall be protected from liability for such sharing, or for any failure
to provide notice of such sharing, to an individual, entity, or organization
that is identified in such sharing, to the full extent provided in
subsection 314(b) of Public Law 107-56.
(ii) Limitation. Paragraph (b)(5)(i) of this section shall not apply to a financial
institution or association of financial institutions to the extent
such institution or association fails to comply with paragraphs (b)(2),
(b)(3), or (b)(4) of this section.
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(c) Information sharing between
financial institutions and the federal government. If, as a result
of information shared pursuant to this section, a financial institution
knows, suspects, or has reason to suspect that an individual, entity,
or organization is involved in, or may be involved in terrorist activity
or money laundering, and such institution is subject to a suspicious
activity reporting requirement under this chapter or other applicable
regulations, the institution shall file a Suspicious Activity Report
in accordance with those regulations. In situations involving violations
requiring immediate attention, such as when a reportable violation
involves terrorist activity or is ongoing, the financial institution
shall immediately notify, by telephone, an appropriate law enforcement
authority and financial institution supervisory authorities in addition
to filing timely a Suspicious Activity Report. A financial institution
that is not subject to a suspicious activity reporting requirement
is not required to file a Suspicious Activity Report or otherwise
to notify law enforcement of suspicious activity that is detected
as a result of information shared pursuant to this section. Such a
financial institution is encouraged, however, to voluntarily report
such activity to FinCEN.
(d) No effect on financial institution reporting
obligations. Nothing in this subpart affects the obligation of
a financial institution to file a Suspicious Activity Report pursuant
to this chapter or any other applicable regulations, or to otherwise
contact directly a Federal agency concerning individuals or entities
suspected of engaging in terrorist activity or money laundering.
