Omigosh - I can't belive it - I know the answer to this one!! (This is a big day for me - my posts up to this time have all been questions!
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I had this exact same question. Here's what I documented:
Request for compliance Interpretation Situation/Issue/Question (3/10/03): Question #28 of FinCEN’s frequently asked questions (regarding the 314(a) information requests process) says that affiliated financial institutions may share 314(a) information requests for purposes of the Bank Secrecy Act. Does this apply to XXXXXX Bank’s affiliate relationship with XXXXXX Insurance?
Background info leading to this question:
- 31 CFR 103.100(b)(2)(iv)(3), which is referenced in Q&A #28, defines a “financial institution” as including (m) an insurance company.
- XXXXX Insurance is an insurance agency, and does not sell insurance products of its own. It only provides products made available by other insurance companies (ex: Safeco) in an agency setting.
Does this definition extend to an insurance agency, thereby making the above applicable to XXXXX Bank? That is, should we also search the records of XXXXXX Insurance in order to be compliant with the US Patriot Act section 314(a) requests?
Answer (3/10/03): According to Jeffrey Pratt of FinCEN’s 314(a) hotline (1-800-949-2732), the insurance agency is not a “financial institution” as defined in the regulation, although he acknowledged that it is a gray area. Nonetheless, he recommended we NOT share the confidential 314(a) requests with XXXXXX Insurance and NOT have them search their records for any matches. There's the answer I got, anyway. Hope it helps!