Section 314(a) of the USA PATRIOT Act is a law that facilitates information sharing between law enforcement agencies and financial institutions (FIs) to combat money laundering and terrorist activities.
Key Facts
- Information Requests: FIs are required to conduct one-time searches of their records when they receive a request for information. The search should identify any matching accounts or transactions related to a named suspect, including those that occurred within the previous year.
- Secure Information Sharing System (SISS): FinCEN, the Financial Crimes Enforcement Network, operates the SISS, a web-based tool where subject lists are posted. FIs receive notifications through the system every two weeks, and they have ten days to compare their account holder records with the subject lists. Positive matches are reported to FinCEN.
- Retroactive Searches: If an FI misses a 314(a) subject list or fails to complete a search, it is required to perform a retroactive search upon receiving the request from FinCEN. Retroactive searches do not include records created after the original request.
- Compliance for Corporate Credit Unions: Corporate credit unions are no longer required to conduct 314(a) searches because they do not service accounts for individual members. FinCEN will no longer distribute 314(a) email notifications to corporate credit unions.
Information Requests
When law enforcement agencies investigate money laundering or terrorist activity, they can request FinCEN to solicit information from FIs. FIs must search their records for any accounts or transactions associated with the named suspects within the past year.
Secure Information Sharing System (SISS)
FinCEN maintains the SISS, a web-based platform where subject lists are posted. FIs receive notifications every two weeks and have ten days to compare their records with the lists. Positive matches must be reported to FinCEN within 14 days.
Retroactive Searches
If an FI fails to conduct a search upon receiving a request, it must perform a retroactive search upon receiving the request from FinCEN. However, the search does not include records created after the original request date.
Compliance for Corporate Credit Unions
Corporate credit unions are no longer required to conduct 314(a) searches as they do not service accounts for individual members. FinCEN will no longer distribute 314(a) notifications to corporate credit unions.
Sources
- What is Section 314(a)?
- Compliance with Section 314(a) of the USA PATRIOT Act of 2001
- Assessing Compliance with BSA Regulatory Requirements – Special Information Sharing Procedures
FAQs
What is Section 314(a)?
Section 314(a) of the USA PATRIOT Act facilitates information sharing between law enforcement and financial institutions to combat money laundering and terrorist activities.
What are the requirements for FIs under Section 314(a)?
FIs must search their records for any accounts or transactions associated with named suspects within the past year when they receive a request from law enforcement.
How does the Secure Information Sharing System (SISS) work?
FinCEN maintains the SISS, where subject lists are posted. FIs receive notifications every two weeks and have ten days to compare their records with the lists. Positive matches must be reported to FinCEN within 14 days.
What are the consequences for FIs that fail to comply with Section 314(a)?
FIs that fail to comply with Section 314(a) may face penalties, including fines and reputational damage.
Are corporate credit unions required to comply with Section 314(a)?
No, corporate credit unions are no longer required to conduct 314(a) searches as they do not service accounts for individual members.
What is the purpose of retroactive searches?
Retroactive searches are required if an FI fails to conduct a search upon receiving a request. The search covers records created before the original request date.
How can FIs protect the confidentiality of information shared under Section 314(a)?
FIs must maintain adequate procedures to protect the security and confidentiality of information shared under Section 314(a).
What are the benefits of Section 314(a)?
Section 314(a) helps law enforcement agencies identify and track the financial assets and transactions of individuals and organizations involved in money laundering or terrorist activities.