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Anti-Money Laundering

  • Information Sharing among Financial Institutions and Law Enforcement

    FinCEN regulation 31 CFR § 1010.520 requires financial institutions, including FCMs, IBs, CPOs, and CTAs comply with information requests received from law enforcement. The regulation requires a financial institution to make an expeditious search of its records for accounts and transactions involving named suspects and provide specified information about the named suspects. It also prohibits the financial institution from disclosing the fact that a request has been made (other than as necessary to comply with the information request).

    CFTC registrants must maintain adequate written policies and procedures to safeguard the security and confidentiality of any information request received from FinCEN. Further, they may 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, except to the extent necessary to comply with the information request. There are significant penalties for willful violations of the BSA regulations.

    FCMs are additionally required to respond to information requests from FinCEN on behalf of law enforcement pursuant to a process developed by FinCEN. Under this process, FCMs must query their records for data matches, including accounts maintained by a named subject during the preceding 12 months and transactions conducted within the last 6 months. FCMs have 2 weeks from the posting date of the request to respond with any positive matches.

    For further information about this process, see Section 314(a) Fact Sheet

    FinCEN regulation 31 CFR § 1010.540 allows certain financial institutions and associations of such financial institutions to share information regarding individuals and other persons involved in possible terrorist activity or money laundering. Sharing is permitted between and among institutions, such as FCMs and IBs that are required by the BSA to establish AML Programs under the 314(b) process administered by FinCEN. Financial institutions and associations of financial institutions that intend to share information under 314(b) must submit an online notification with FinCEN via its Secure Information Sharing System. The online notification is renewed on a yearly basis.

    For further information about this process, see 314(b) Fact Sheet.