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#1867414 - 11/01/13 12:25 PM 314(b) Information Sharing - Your Take?
Elwood P. Dowd Offline
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FinCEN is literally promoting information sharing among banks and has distributed a Fact Sheet which is a good summary of the features and benefits. Interestingly, it does not mention the possibility of "joint SAR filing" as one of the potential benefits.

What is your take on the value of the mechanism? My experience is that few community financial institutions are enrolled and those that are found their impetus in encouragement from an auditor or examiner, not a specific fact situation.
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#1867429 - 11/01/13 12:52 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
devsfan Offline
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We are enrolled and have been since I came here about 8 years ago. As Ken indicated, the impetus was an examiner asking "why not"? In my mind there is little downside in participating and there is an occasional upside. We have not initiated too many requests but when we did we got a better picture of the activity that we were looking at and when we received some requests it was helpful as well.

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#1867443 - 11/01/13 01:17 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
Big Dog Offline
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I believe that the information sharing can be a very powerful tool for the right situations. My issues are the amount of documentation and due diligence required between the FI's to share information. Also, we are limited to Terrorist Financing and Money Laundering as basis for the information. If i am investigating fraud, can I justify the request as money laundering? maybe, maybe not. It is not clear to me, so we tend to not use this as a basis for a request.
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#1867444 - 11/01/13 01:16 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
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It is a two edge sword for a smaller community bank. You have to have the policies, procedures, retention processes all in place. It may be used very infrequently. You have to remember to re-register on a annual basis. You have to understand that you can only use it for suspected money laundering or terrorist financing. While it might come in more handy for kiting or other types of investigations, those are off limits.

I would say 80% of the banks that I work with do not participant and have no desire to start. Of the 20% that do participate, if they actually get or make a request once a year, I would count them lucky.
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#1867515 - 11/01/13 02:43 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
joser Offline
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"Interestingly, it does not mention the possibility of "joint SAR filing" as one of the potential benefits."

My understanding is you may not disclose whether you are filing a SAR to another 314 b contact. "joint SAR filings" (I believe) only exists between brokerage firms with a standing agreement in place and its predetermined who will be filing.

The use of 314 b has helped us on several occasions to determine whether to file.

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#1867540 - 11/01/13 03:25 PM Re: 314(b) Information Sharing - Your Take? joser
Elwood P. Dowd Offline
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Quote:
"joint SAR filings" (I believe) only exists between brokerage firms with a standing agreement in place and its predetermined who will be filing.


There is no such restriction.
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#1867593 - 11/01/13 04:35 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
AMLMGR Offline
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We use 314b on a regular basis and encourage it as an investigative standard. On many occasions we have found it very beneficial to our investigation! Our only struggle with 314b's have been lack of response from the other participants at times. Those however do not take away from the overall benefits of participation in information sharing!

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#1867786 - 11/01/13 08:33 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
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I would agree with Randy that benefits are minimal for community banks. However, I will add it is somewhat useful for regionals and is a mandatory investigation tool for the big boys. It really depends on the type of bank we are talking about.
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#1867803 - 11/01/13 08:48 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
devsfan Offline
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Even if it is not used frequently I still believe there is little downside in being registered as it will be available as needed

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#1867814 - 11/01/13 09:23 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
Matt_B Offline
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I've not had any official requests of me, and have only made one request with minimal results. What I have noticed is that some people use it as a list of contacts to reach out to at other financials. Maybe you can't verify a check though the normal call center means, but if you are dealing with an actual contact person vs a dedicated inbox for requests, you might get someone willing to help you out.

Not how the system is intended to be used, obviously, but I've had two cases where people have contacted me for just that reason and both indicated that they have had great luck with it, and don't even try calling general numbers for FIs if they see that someone's on the 314(b) list they can call directly.

These have been smaller community-based institutions, not national banks or anything like that.
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#1869740 - 11/08/13 03:55 PM Re: 314(b) Information Sharing - Your Take? Matt_B
Elwood P. Dowd Offline
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Bump
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#1869853 - 11/08/13 06:48 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
JacF Offline

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As has been mentioned already, often a tool such as 314(b) isn't going to see frequent or regular use in a smaller community bank. But when I've had occasion to use it (both to initiate and respond to requests), I've found it to be a very useful tool.

If I'm researching potential money laundering, and can identify another bank that is associated with my subject, I'll reach out. Sometimes I get info from the other bank that validates legitimate activity, and get my investigation promoted to the "reviwed-but-not-filed" file. Sometimes I get info that provides a fuller picture of the activity to enhance my SAR narrative. Either way, I end up with a more complete investigation than I started with.

Of course, there are those times when the most I can get out of a 314(b) is a line in the SAR narrative that says "A request for information was sent to TBFT Bank. As of this writing, no response has been received". But even this never makes my position worse.

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#1870363 - 11/12/13 07:18 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
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Same here as other responses-have been registered for many years in the mid-sized community bank and have found it useful on several occaisions. Registred on our own, not by recommendation. Sure would be easier to not have to worry about a compliance issue like re-registering annually. They need to make it be a "once in, always in unless you want out" but I am sure this database would be a mess to manage. Having one more tool in your arsenal never hurts anyone though.

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#1872008 - 11/18/13 02:54 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
WonderWoman Offline
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I have found it very useful at times (I'm a small community bank) & sitting in the ABA MLEC, I'm hearing "they" (lawmakers) are working on expanding 314b to give us more leeway when talking about ALL forms of reportable activity
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#2123538 - 03/24/17 05:52 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
Red Raiders Offline
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This may be a silly question but we received a call from a person at a bank who is a 314b sharer (as are we). The person calling wasn't registered but the bank was. Can we share with this person or does it have to be one of the people registered?
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#2123680 - 03/27/17 11:35 AM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
bcompliance Offline
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I would only share with someone who was registered.
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#2123699 - 03/27/17 01:48 PM Re: 314(b) Information Sharing - Your Take? Red Raiders
Elwood P. Dowd Offline
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Banks register, not individuals.
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#2123703 - 03/27/17 02:04 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
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Ken, so you are saying if they are not listed as a designated 314b point of contact, you would share information with them as long as their bank is registered?
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#2124686 - 03/31/17 08:27 PM Re: 314(b) Information Sharing - Your Take? Elwood P. Dowd
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As a past BSA Officer, I did not participate due to workload management issues. Althought, I'd heard most community banks weren't sending or receiving too many inquiries.

As an auditor/consultant, my opinion hasn't changed; however, there is a specific AML program that has saturated the community bank market which has streamlined the process to the point where it'd be a no-brainer to participate, in my opinion.
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