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8000 - Miscellaneous Statutes and Regulations
Subpart H—Special Information Sharing Procedures To Deter Money
Laundering and Terrorist Activity
§ 103.90 Definitions.
For purposes of this subpart, the following definitions apply:
(a) Money laundering means an activity criminalized by
18 U.S.C. 1956 or
1957.
(b) Terrorist activity means an act of domestic
terrorism or international terrorism as those terms are defined in 18
U.S.C. 2331.
(c) Account means a formal banking or business
relationship established to provide regular services, dealings, and
other financial transactions, and includes, but is not limited to, a
demand deposit, savings deposit, or other transaction or asset account
and a credit account or other extension of credit.
(d) Transaction. (1) Except as provided in paragraph
(d)(2) of this section, the term "transaction" shall have the
same meaning as provided in § 103.11(ii).
(2) For purposes of § 301.100, a transaction shall not mean any
transaction conducted through an account.
[Codified to 31 C.F.R. § 103.90]
[Section 103.90 added at 67 Fed. Reg. 9876, March 4, 2002; amended
at 67 Fed. Reg. 60585, September 26, 2002]
§ 103.100 Information sharing between Federal law enforcement
agencies and financial institutions.
(a) Definitions. For purposes of this section:
(1) The definitions in § 103.90 apply.
(2) Financial institution means any financial
institution described in 31 U.S.C.
5312(a)(2).
(3) Transmittal of funds has the same meaning as
provided in § 103.11(jj).
(b) Information requests based on credible evidence
concerning terrorist activity or money laundering.--(1) In
general. A Federal law enforcement agency investigating terrorist
activity or money laundering may request that FinCEN solicit, on the
investigating agency's behalf, certain information from a financial
institution or a group of financial institutions.
{{10-31-02 p.8516.05}}When submitting
such a request to FinCEN, the Federal law enforcement agency shall
provide FinCEN with a written certification, in such form and manner as
FinCEN may prescribe. At a minimum, such certification must: state that
each individual, entity, or organization about which the Federal law
enforcement agency is seeking information is engaged in, or is
reasonably suspected based on credible evidence of engaging in,
terrorist activity or money laundering; include enough specific
identifiers, such as date of birth, address, and social security
number, that would permit a financial institution to differentiate
between common or similar names; and identify one person at the agency
who can be contacted with any questions relating to its request. Upon
receiving the requisite certification from the requesting Federal law
enforcement agency, FinCEN may require any financial institution to
search its records to determine whether the financial institution
maintains or has maintained accounts for, or has engaged in
transactions with, any specified individual, entity, or organization.
(2) Obligations of a financial institution receiving an
information request.--(i) Record search. Upon receiving
an information request from FinCEN under this section, a financial
institution shall expeditiously search its records to determine whether
it maintains or has maintained any account for, or has engaged in any
transaction with, each individual, entity, or organization named in
FinCEN's request. A financial institution may contact the Federal law
enforcement agency named in the information request provided to the
institution by FinCEN with any questions relating to the scope or terms
of the request. Except as otherwise provided in the information
request, a financial institution shall only be required to search its
records for:
(A) Any current account maintained for a named suspect;
(B) Any account maintained for a named suspect during the
preceding twelve months; and
(C) Any transaction, as defined by § 103.90(d), conducted by or
on behalf of a named suspect, or any transmittal of funds conducted in
which a named suspect was either the transmittor or the recipient,
during the preceding six months that is required under law or
regulation to be recorded by the financial institution or is recorded
and maintained electronically by the institution.
(ii) Report to FinCEN. If a financial institution
identifies an account or transaction identified with any individual,
entity, or organization named in a request from FinCEN, it shall report
to FinCEN, in the manner and in the time frame specified in FinCEN's
request, the following information:
(A) The name of such individual, entity, or organization;
(B) The number of each such account, or in the case of a
transaction, the date and type of each such transaction; and
(C) Any Social Security number, taxpayer identification number,
passport number, date of birth, address, or other similar identifying
information provided by the individual, entity, or organization when
each such account was opened or each such transaction was conducted.
(iii) Designation of contact person. Upon receiving an
information request under this section, a financial institution shall
designate one person to be the point of contact at the institution
regarding the request and to receive similar requests for information
from FinCEN in the future. When requested by FinCEN, a financial
institution shall provide FinCEN with the name, title, mailing address,
e-mail address, telephone number, and facsimile number of such person,
in such manner as FinCEN may prescribe. A financial institution that
has provided FinCEN with contact information must promptly notify
FinCEN of any changes to such information.
(iv) Use and security of information request. (A) A
financial institution shall not use information provided by FinCEN
pursuant to this section for any purpose other than:
(1) Reporting to FinCEN as provided in this section;
(2) Determining whether to establish or maintain an
account, or to engage in a transaction; or
(3) Assisting the financial institution in complying
with any requirement of this part.
{{10-31-02 p.8516.06}}
(B)(1) A financial institution shall not disclose to
any person, other than FinCEN or the Federal law enforcement agency on
whose behalf FinCEN is requesting information, the fact that FinCEN has
requested or has obtained information under this section, except to the
extent necessary to comply with such an information request.
(2) Notwithstanding paragraph (b)(2)(iv)(B)(1) of this
section, a financial institution authorized to share information under
§ 103.110 may share information concerning an individual, entity, or
organization named in a request from FinCEN in accordance with the
requirements of such section. However, such sharing shall not disclose
the fact that FinCEN has requested information concerning such
individual, entity, or organization.
(C) Each financial institution shall maintain adequate procedures
to protect the security and confidentiality of requests from FinCEN for
information under this section. The requirements of this paragraph
(b)(2)(iv)(C) shall be deemed satisfied to the extent that a financial
institution applies to such information procedures that the institution
has established to satisfy 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.
(v) No other action required. Nothing in this section
shall be construed to require a financial institution to take any
action, or to decline to take any action, with respect to an account
established for, or a transaction engaged in with, an individual,
entity, or organization named in a request from FinCEN, or to decline
to establish an account for, or to engage in a transaction with, any
such individual, entity, or organization. Except as otherwise provided
in an information request under this section, such a request shall not
require a financial institution to report on future account opening
activity or transactions or to treat a suspect list received under this
section as a government list for purposes of section 326 of Public Law
107--56.
(3) Relation to the Right to Financial Privacy Act and the
Gramm-Leach-Bliley Act. The information that a financial
institution is required to report pursuant to paragraph (b)(2)(ii) of
this section is information required to be reported in accordance with
a Federal statute or rule promulgated thereunder, for purposes of
subsection 3413(d) of the Right to Financial Privacy Act
(12 U.S.C. 3413(d)) and
subsection 502(e)(8) of the Gramm-Leach-Bliley Act (15 U.S.C.
6802(e)(8)).
(4) No effect on law enforcement or regulatory
investigations. Nothing in this subpart affects the authority of a
Federal agency or officer to obtain information directly from a
financial institution.
[Codified to 31 C.F.R. § 103.100]
[Source: Section 103.100 added at 67 Fed. Reg. 60585, September 26,
2002]
§ 103.110 Voluntary information sharing among financial
institutions.
(a) Definitions. For purposes of this section:
(1) The definitions in § 103.90 apply.
(2) Financial institution. (i) Except as provided in
paragraph (a)(2)(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 part to establish and maintain an anti-money
laundering program, or is treated under this part 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.
(3) Association of financial institutions means a
group or organization the membership of which is comprised entirely of
financial institutions as defined in paragraph (a)(2) 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
{{10-31-02 p.8516.06-A}}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 in Appendix A to this subpart H. 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.treas.gov/fincen,
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, Mail Stop 100, Vienna, VA 22183.
(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 part.
(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.
(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 part or other applicable
regulations,
{{10-31-02 p.8516.06-B}}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 subpart B
of this part 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.
[Codified to 31 C.F.R. § 103.110]
[Section 103.110 added at 67 Fed. Reg. 9876, March 4, 2002; as
amended by 67 Fed. Reg. 60587, September 26,
2002]
Appendix A to subpart H—Notice for Purposes of Subsection
314(b)
of the USA Patriot Act and 31 CFR 103.110
Notice for Purposes of Subsection 314(b)
of the USA Patriot Act
and
31 CFR 103.110
Notice is given, on behalf of (insert name, address, and federal
employer identification number (EIN) of financial institution or
association of financial
institutions)
________________________________________________________
________________________________________________________
________________________________________________________
that:
(1)(i) The financial institution specified above is a
"financial institution" as such term is defined in 31 CFR
103.110(a)(2), or (ii) the association specified above is an
"association of financial institutions" as such term is defined
in 31 CFR 103.110(a)(3).
(2) The financial institution or association specified above
intends, for a period of one (1) year beginning on the date of this
notice, to engage in the sharing of information with other financial
institutions or associations of financial institutions regarding
individuals, entities, organizations, and countries, as permitted by
subsection 314(b) of the USA Patriot Act of 2001 (Public Law 107--56)
and the implementing regulations of the Department of the Treasury,
Financial Crimes Enforcement Network (31 CFR 103.110).
(3) The financial institution or association of financial
institutions specified above has established and will maintain adequate
procedures to safeguard the security and confidentiality of such
information.
(4) Information received by the above named financial
institution or association pursuant to section 314(b) and 31 CFR
103.110 will not be used or disclosed for any purpose other than as
permitted by 31 CFR 103.110(b)(4).
(5) In the case of a financial institution, the primary
federal regulator, if applicable, of the above named financial
institution is ____________________________________________ .
(6) The following person may be contacted in connection with
inquiries related to the information sharing under subsection 314(b) of
the USA Patriot Act and 31 CFR 103.110:
NAME: _______
TITLE: _______
MAILING ADDRESS: ____________________________________________
________________________________________________________
________________________________________________________
{{2-28-06 p.8516.06-C}}
E-MAIL ADDRESS: ____________________________________________ TELEPHONE
NUMBER: ____________________________________________ FACSIMILE NUMBER: ____________________________________________
BY: ____________________________________________ Name ____________________________________________ Title ____________________________________________ Date
[Codified to Appendix A to Subpart H]
[Source: Appendix A to Subpart H added at 67 Fed. Reg.
60588, September 26, 2002]
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