OCC 2002-42
OCC Bulletin

Subject:      Bank Secrecy Act/Anti-Money Laundering
Description:  Final Rule--Special Information-Sharing 
              Procedures to Deter Money Laundering and 
              Terrorist Activity

Date:         October 16, 2002

TO:  Chief Executive Officers and Compliance Officers of 
     All National Banks and Federal Branches and Agencies, 
     Department and Division Heads, and All Examining 
     Personnel

This bulletin transmits a final rule published by the U.S. 
Treasury Department on September 26, 2002 to implement 
section 314 of the USA PATRIOT Act.  The rule, codified in 
31 CFR 103, became effective on September 26, and it 
supersedes the interim rule published March 4.  The two-
part rule facilitates the exchange of information 
(1) between the government and financial institutions 
(31 CFR 103.100) and (2) among financial institutions 
(31 CFR 103.110).

Information-Sharing Between the Government and Financial 
Institutions (31 CFR 103.100)

The final rule requires a financial institution to:

·  Expeditiously search its records to determine whether 
it maintains or has maintained accounts, or engaged in 
transactions with individuals or entities, listed in a 
request submitted by the Financial Crimes Enforcement 
Network (FinCEN).   Unless otherwise provided in the 
request, the records search must cover current accounts, 
accounts opened in the prior twelve months, and 
transactions conducted in the prior six months. 

·  Notify FinCEN if an account or transaction is 
identified.

·  Designate a contact person to receive information 
requests.

·  Limit use of information provided by FinCEN to: 
(1) reporting to FinCEN, (2) determining whether to 
establish or maintain an account or engage in a 
transaction, and (3) assisting the financial 
institution in complying with the Bank Secrecy Act (BSA).  

·  Maintain adequate procedures to protect the security 
and confidentiality of FinCEN requests.

Information-Sharing Among Financial Institutions 
(31 CFR 103.110)

This section of the rule allows financial institutions to 
share information among themselves and with associations 
of financial institutions on a voluntary basis.  A 
financial institution may share information regarding 
individuals, entities, organizations, and countries for 
purposes of identifying and, where appropriate, reporting 
activities that it suspects may involve possible terrorist 
activity or money laundering.  Such information-sharing 
is protected under a safe harbor if the financial 
institution:  

·  Notifies FinCEN of its intention to share information, 
even when sharing with an affiliated financial institution.  
The notice is described in Appendix A of the rule and can 
be submitted to FinCEN electronically on 
http://www.treas.gov/fincen.  Notices are effective for 
one year.

·	Takes reasonable steps to verify that, prior to 
sharing, the financial institution or association of 
financial institutions with which it intends to share 
information has submitted a notice to FinCEN.  

·	Limits the use of shared information to identifying 
and reporting on money laundering or terrorist activities, 
determining whether to establish or maintain an account or 
engage in a transaction, or assisting it in complying with 
the BSA.

·	Maintains adequate procedures to protect the security 
and confidentiality of the information.

Questions about the final rule may be directed to your OCC 
supervisory office or the Compliance Division at 
(202) 874-4428.




___________________________________
David G. Hammaker
Deputy Comptroller for Compliance



Attachment – 67 FR 60579

[http://www.occ.treas.gov/fr/fedregister/67fr60579.pdf]