FinCEN Guidance Clarifies 314(b) Information Sharing

June 16, 2009 - The Financial Crimes Enforcement Network ("FinCEN") has issued interpretive guidance to clarify the application of the rule implementing section 314(b) (the "314(b) rule") of the USA PATRIOT Act (the "Act"). Specifically, this guidance clarifies that a financial institution (e.g. casino) participating in the section 314(b) program may share information relating to transactions that the institution suspects may involve the proceeds of one or more specified unlawful activities ("SUAs") and such an institution will still remain within the protection of the section 314(b) safe harbor from liability.

Section 314(b) permits two or more financial institutions and any association of financial institutions to "share information with one another regarding individuals, entities, organizations, and countries suspected of possible terrorist or money laundering activities." Section 314(b) establishes a safe harbor from liability for a financial institution or an association of financial institutions that voluntarily chooses to share information with other financial institutions for the purpose of identifying and, where appropriate, reporting possible money laundering or terrorist activity. To avail itself of the section 314(b) safe harbor, a financial institution must comply with the requirements of the implementing regulation, including provision of notice to FinCEN, taking reasonable steps to verify that the other financial institution has submitted the requisite notice, and restrictions on the use and security of information shared.

The SUAs listed in 18 U.S.C. § § 1956 and 1957 include an array of fraudulent and other criminal activities. Information related to the SUAs may be shared appropriately within the 314(b) safe harbor to the extent that the financial institution suspects that the transaction may involve the proceeds of one or more SUAs and the purpose of the permitted information sharing under the 314(b) rule is to identify and report activities that the financial institution "suspects may involve possible terrorist activity or money laundering." Therefore, to the extent that financial institutions share information related to possible money laundering activities, including those associated with the underlying SUAs, or related to possible terrorist activity, such information sharing remains within the protection of the rule's safe harbor, provided the aforementioned conditions are met.

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Sycuan Casino Hosts IRS and FinCEN at Title 31 Seminar

On Thursday, May 28, and Friday, May 29, the Executive Team at Sycuan Casino hosted a very comprehensive seminar covering the latest challenges and solutions within the Title 31 compliance arena for the gaming industry.

Members of IRS, FinCEN, IRS Indian Tribal Governments Office, Immigration and Customs Enforcement, Resort Advantage, AP-ID, Casino Essentials, Deloitte & Touche, and Sycuan’s own executive Management Team members provided 10 hours of real-life examples and thought-provoking content to the 150+ attendees who represented the most prominent Tribal casinos in the western US.

As a result of this session, Sycuan Casino further reinforced its position within the Tribal gaming industry as a leader in the use of technology to minimize their risk associated with all regulatory compliance requirements. Using tools including Resort Advantage Title 31 Accelerator, Convey Compliance Systems, AP-ID / Veridocs, and Total Recall Learning, Sycuan is setting the standard for Title 31 compliance management reporting and auditing.

BSA E-Filing Batch Validation Updates

FinCEN will implement the second stage of its Bank Secrecy Act Electronic Filing System (BSA E-Filing) Batch Validation process at the end of July.

FinCEN has assessed the first stage, which permits all submissions that do not correspond to formatting requirements to be accepted with warnings, and has determined that the initial six-month period will not be extended.

Visit FinCEN here for more details.

FinCEN Customer CTR Educational Pamphlet

The Financial Crimes Enforcement Network (FinCEN) has created an educational pamphlet, "Notice to Customers: A CTR Reference Guide," for financial institutions and their customers containing information on the currency transaction reporting (CTR) requirement.

Click here for the pamphlet.