OCC 2002-12
OCC Bulletin
Subject:     Bank Secrecy Act/Anti-Money laundering
Description: Notice of Proposed Rulemaking & Interim Rule
             --Special Information-Sharing Procedures to 
             Deter Money Laundering and Terrorist Activity
Date:  March 28, 2002

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

This bulletin transmits a notice of proposed rulemaking 
and an interim rule published by the U.S. Treasury 
Department on March 4 to implement provisions of the USA 
PATRIOT Act (act).  Title III of the USA PATRIOT Act 
authorized new measures to combat money laundering and 
terrorist financing.  Section 314 of the act furthers 
this goal by promoting the exchange of information: (1) 
between government entities and financial institutions 
(section 314(a)) and (2) among financial institutions 
(section 314(b)).

Information Sharing Between Government Entities and 
Financial Institutions (Section 314(a))

Section 314(a) of the act requires regulations encouraging 
cooperation between financial institutions and the federal 
government through the exchange of information regarding 
individuals, entities, and organizations engaged in or 
reasonably suspected of engaging in terrorist acts or 
money laundering.  The proposed regulation will create a 
mechanism by which federal law enforcement agencies may 
obtain from financial institutions vital information 
relating to suspected terrorists and money launderers.

The Financial Crimes Enforcement Network (FinCEN), a 
bureau of the U.S. Treasury Department (Treasury), already 
maintains a government-wide data access service to assist 
federal, state, and local law enforcement agencies in the 
detection, prevention, and prosecution of terrorism, 
organized crime, money laundering, and other financial 
crimes.  Under the proposed regulation, federal law 
enforcement will have the ability to locate accounts of, 
and transactions conducted by, suspected terrorists or 
money launderers by providing their names and identifying 
information to FinCEN.  FinCEN will then communicate that 
information, both electronically and by fax, to financial 
institutions so that a check of accounts and transactions 
can be made.  If matches are found, law enforcement can 
then follow up with the financial institution directly.  
The proposed regulation is intended to formalize and 
streamline the information-sharing and reporting process 
that the federal government undertook following the 
attacks of September 11, 2001, by permitting FinCEN to 
serve as a conduit for information sharing between federal 
law enforcement agencies and financial institutions.

Information Sharing Among Financial Institutions (Section 
314(b))

This proposed regulation and interim rule, effective 
March 4, also establishes new information-sharing 
procedures among financial institutions.  In order to 
facilitate financial institutions' ability to identify and 
report to the federal government instances of suspected 
money laundering or terrorist financing, section 314(b) 
of the act creates a "safe harbor" from civil liability 
for institutions that share relevant information after 
providing notice to Treasury.

The proposed regulation and rule issued sets forth a 
procedure whereby financial institutions must file an 
annual certification if they wish to share information 
under this provision.  The certification, which can be 
completed online at FinCEN's Web site 
[http://www.treas.gov/fincen], requires financial 
institutions to take steps to protect the confidentiality 
of the information and to use the information only for 
purposes specified in the rule.

Given the importance of this information-sharing 
provision, Treasury has issued this regulation as a 
proposed rulemaking and an interim rule.  By also 
including this provision in the proposed regulation, 
Treasury ensures that the public has an opportunity to 
comment.  A link to the proposed regulation and the 
interim rule can be found at Treasury's Web site: 
[www.treas.gov/press.releases/index].

Comments on all aspects of the proposed regulations are 
due on or before April 3.

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




David G. Hammaker
Deputy Comptroller for Compliance


Attachments - 67 FR 9874 
[http://occ.treas.gov/ftp/bulletin/2002-12a.pdf]and 
             67 FR 9879
[http://occ.treas.gov/ftp/bulletin/2002-12b.pdf]