Our holding company owns the bank and a couple of non-bank subsidiaries. I am the FinCen contact person for the bank and I received the email request today. I just learned that someone in the holding company also received the FinCen request, and of course that person has no idea what this is all about. I don't know (yet) how FinCen got that person's e-mail address.

My question: Are these FinCen requests applicable to the holding company? I don't think so, but I would appreciate some of your thoughts on this.

Technically, the holding company does not meet the statute's definition of a financial institution, nor does it have any customers whose records it could search. The send must be a miscue and probably represents an "over share." Your bank(s) should name their contacts and ask that all others be removed.

Question 28 of the official Q & A allows requests from affiliated institutions to be sent to a central location, but it does not require it. It does clearly indicate that the receiving affiliate must be a financial institution.

Thanks for your input. We'll see about getting the person removed from the e-mail list.

I'm sorry to be posting without being logged in however, I don't have my password here at home.

I work for a BHC and I have been assigned the responsibility of making sure the 314(a)'s are researched for each of the banks we own. I've spoken with an OCC Rep who stated that it was ok for the holding company to do this (as long as the sharing info notice has been filed). I think it just depends on how your organization sets it up.

Is this totally wrong?

Brenda K

Brenda,
Some aspects of the regulation are dependent on the definition of "financial institution" at 31 USC 5312(a)(2). At your prompting, I went back and read it again. I still do not see anything that indicates a holding company meets the definition of a financial institution.

The issue is addressed in question 28 of the official Q & A and the part that concerns me is: When sharing a 314(a) request with an affiliate, the central point of contract should ensure that the receiving affiliate is itself a "financial institution" for purposes of the Bank Secrecy Act and its implementing regulations. In candor, I would have answered the question the same way your OCC contact did except that this sentence made me go back and read the definition. It does not make a lot of sense to me that a third party vendor can have the information, but not the holding company.

Check with the OCC's listed contact for 314(a). Doing it by e-mail where you have a written response would be a good idea. I think the easy fix is just to have the info sent to a point of contact at the lead bank and, as you note, register all the sister institutions under 314(b). Any other opinions out there?

Would you mind describing how centralizing the review at the holding company streamlines the process? Do your banks use a common data processing system? How do you check records for wire transfers and monetary instruments at each institution?

I think they just have a HC person on the e-mail list. I'd chalk it up as a SNAFU.

We are centralized between the banks. While I am not a HC officer, I just as well could be. I am the CO for both banks. Our BSA officer is as well. She will have the 314a requests completed jointly. While we use the same mainframe, each bank has its own records. So we can't currently search one time and hit both banks files, it is still faster having one person(s) do both banks at the same time. That said, we are meeting today to see about automating the system to do just this. It will be faster and more effective as well as cost efficient. Some records are not in e-form and will require manual review, but we'll be better off.

Good morning Ken -

We feel that making a BHC employee (myself) the contact person we would be able to ensure the review is completed within the alotted timeframe.

I am able to check the customer base for all deposits accounts, loan records, safe deposit boxes, and credit cards on line for each bank. No, we are not on one data processing system however, I have access to all systems.

Wire transfers, investment services, and trust services are performed at one specific location for all our banks. Monetary instruments will have to be reviewed at each individual bank.

There is no way that one person is able to complete all this review within the allowed time. I have established contacts within the needed areas/banks who will review the need materials. A checklist type form will be used which the reviewer will sign and date confirming there is or is not a match.

I too questioned whether it was ok for the BHC to be assigned the contact. I reviewed BOL Threads which others confirmed they were doing. I even took it a step farther and discussed it with the OCC (our regulators).

Now I'm really concerned. I will take your advice and email the 314(a) contact person for the OCC via email. Until we find out differently, I will proceed as we currently are set up to ensure the completion of these first four lists that have been received.

Thanks Ken.

I wanted to give everyone an update to this discussion. I contacted the OCC again, this time via email, to receive either confirmation or denial as to whether or not it is OK for a BHC to receive, disseminate, and/or conduct the searches.

Jim Vivenzio, of the OCC Washington office, states it is OK for the holding company to receive and disseminate the requests as well as to conduct the searches.

He also confirmed that the BHC AND each affiliate bank needs to file the notice with FinCEN that the information is being shared.

Thanks everyone.

Wouldn't 103.100(b)(2)(iv)(B)(1 & 2) technically prevent the sharing of FinCEN information requests between BHC and/or affiliates? It states "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. 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.

Sounds to me like the actual FinCEN Information Request could not be shared from Holding company to affiliate, or affiliate to affiliate, even with the Notice to FinCEN. Can someone clear this up for me? Thank you.

Question #28 of the Q&As that were briefly on FinCEN's website, and were sent out before the requests stated again after the moratorium, seems to answer this question.

FYI -- FinCEN used the contact information that they were originally given regarding the Control List. Our requests were going to the former President/CEO of Bank and HC. Fortunately for us, this person is still around and knew where to forward the requests.