Sec. 103.110 Voluntary information sharing among financial institutions.
(a) For purposes of this section:
(1) The definitions in Section 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
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 website,
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, PO 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 (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, 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.
5. Appendix A is added to Subpart H to read as follows:
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: _______________________________________
________________________________________________________
________________________________________________________
E-MAIL ADDRESS: ________________________________________
TELEPHONE NUMBER: ______________________________________
FACSIMILE NUMBER: ______________________________________
BY: ____________________________________________________
Name____________________________________________________
Title___________________________________________________
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