Vol. XLIII, No. 15

Vol. XLIII, No. 15

FinCEN's 2026 Section 314(b) Fact Sheet: What Bank Compliance Officers Need to Know

I. 2026 FinCEN 314(b) Fact Sheet Updates
Section 314(b) is a voluntary information-sharing authority created by the USA PATRIOT Act that allows eligible financial institutions, and associations of eligible financial institutions including the NBA, to share information with one another under a safe harbor from liability when the purpose is to identify and, where appropriate, report activities that may involve money laundering or terrorist activity. It is found in Section 314(b) of the USA PATRIOT Act of 2001 and implemented in the Financial Crimes Enforcement Network’s (FinCEN) regulations at 31 C.F.R. § 1010.540. FinCEN’s fact sheets emphasize that participation is voluntary but strongly encouraged because it can help financial institutions develop a more complete picture of suspicious activity that may involve multiple institutions, customers, accounts, entities, jurisdictions, or transaction channels. 

FinCEN has expanded and clarified the practical use of Section 314(b) through a series of guidance documents, including guidance issued in 2009, an administrative ruling in 2012, Fact Sheets released in 2016 and December 2020, and most recently, the June 12, 2026 Fact Sheet. The 2020 Fact Sheet superseded earlier guidance and clarified several important points. It confirmed that institutions do not need conclusive proof of suspicious activity or specific knowledge that funds are the proceeds of a specified unlawful activity before sharing information, provided there is a reasonable basis to believe the information relates to activity that may involve money laundering or terrorist activity. It also clarified that information sharing extends to “predicate crimes” underlying money laundering and terrorist activity, including a broad range of fraudulent and criminal conduct such as fraud against individuals, organizations, or governments, computer fraud and abuse, and other offenses. In addition, the guidance confirmed that institutions may share personally identifiable information, attempted transactions, video surveillance, cyber-related data such as IP addresses, and verbal as well as written communications, while continuing to preserve the confidentiality protections applicable to Suspicious Activity Reports (SARs).

FinCEN’s June 12, 2026, Section 314(b) Fact Sheet expands and replaces its December 2020 Fact Sheet, and the update is especially relevant for banks confronting fast-moving fraud, scams, mule activity, cyber-enabled crime, and cross-institutional illicit finance risk. While the core 314(b) framework remains voluntary and subject to registration, verification, confidentiality, and limited use requirements, the new guidance gives banks more explicit comfort to share information quickly and practically with other registered participants. 

In 2025, the Nebraska Bankers Association registered with FinCEN for 314(b) participation and established the Fraud and Security Community Platform. This secure platform allows the NBA and participating financial institutions to share fraud trends and specific instances of fraudulent activity to prevent financial crimes and protect customers. Any financial institution, including credit unions, may participate in the platform if registered with FinCEN for 314(b) participation.

II. 2026 FinCEN 314(b) Fact Sheet Updates
The most important takeaway is that FinCEN has made 314(b) more operationally useful for fraud and scam typologies. The 2020 Fact Sheet already recognized that specified unlawful activities, or SUAs, may include fraud and other crimes. The 2026 Fact Sheet goes further by adding a specific Q&A confirming that information related to fraud can be shared under 314(b) when the institution suspects the information involves a fraud offense or other specified unlawful activities (“SUA”) and the requirements for 314(b) participation are otherwise satisfied. FinCEN also clarifies that a bank does not need to identify specific proceeds of fraud being laundered before sharing under the safe harbor. 

The 2026 Fact Sheet also expressly supports real-time information sharing. This is a practical and important development for banks because fraud and mule activity often move faster than traditional investigative cycles. FinCEN now explicitly states that financial institutions may use 314(b) to alert other participating institutions in real time to transactions that may be connected to money laundering or terrorist financing, and that information sharing may occur as activity is occurring, provided the institution complies with the use and security requirements in 31 C.F.R. § 1010.540(b)(4). 

Another significant clarification is that a bank may share information with another 314(b)-registered financial institution even if the bank has no reason to believe the information relates to a specific customer, account, or transaction at the receiving institution. This is a meaningful expansion for typology-driven and network-based investigations. For example, information about suspected mule identifiers, device information, emerging scam indicators, or suspicious transactional patterns may be valuable to another institution even before that institution has identified a direct customer match. Although the ability of the NBA to operate its Fraud and Security Community Platform, and for operation of Financial Institution Security Associations (FISA) in Nebraska and across the country were implicit, the new guidance provides clear affirmation for Nebraska banks.

FinCEN also provides a broader list of examples of information that may be shared. In addition to previously recognized examples such as personally identifiable information (PII), video surveillance footage, IP addresses, and verbal or written communications, the 2026 Fact Sheet identifies transaction information, geolocation data, device identification numbers, account opening or closure decisions and supporting analysis, transaction monitoring alerts, newly added payees followed by large transfers, accounts with similar identifying information, and login activity from geographically distant locations. 

For compliance officers, this means banks should revisit their 314(b) procedures to ensure they support faster, better-documented, and more consistent sharing. Procedures should address who may share information, how 314(b) participants are verified, what information may be shared, what approvals or escalation steps apply, how confidentiality is maintained, and how shared information is incorporated into investigations, transaction monitoring, customer due diligence, account decisions, and SAR decisioning. FinCEN specifically notes that received information may be incorporated into transaction monitoring systems and used more generally to comply with BSA obligations.

The 2026 Fact Sheet also updates operational mechanics. Banks no longer follow the 2020 Fact 2 Sheet’s instructions for FinCEN Secure Information Sharing System (SISS) registration. Instead, institutions should request access to FinCEN’s Financial Industry Portal, use the 314(b) tile to submit registration, and use the FI Portal’s searchable directory to verify participant status. Registrations are processed automatically, and institutions may generate acknowledgment letters for their records.  

Banks should also pay attention to the new cross-border discussion. FinCEN explains that sharing with a foreign financial institution, including a foreign affiliate or subsidiary, depends on whether the recipient qualifies as a financial institution under the 314(b) regulatory definition. If the recipient does not qualify, the 314(b) safe harbor may not apply, even though information received under 314(b) may be shared with a foreign financial institution solely for the permitted purposes identified in the regulation. FinCEN also cautions institutions to consider other U.S. legal authorities and applicable foreign law. 

​Finally, the SAR-related rules remain critical. Section 314(b) still does not authorize sharing a SAR, or information that would reveal the intent to prepare, existence, or non-existence of a SAR. However, the 2026 Fact Sheet clarifies that institutions participating in 314(b) information sharing that are considering or have filed a joint SAR may freely discuss the prospective or filed joint SAR among themselves and share its contents.  

III. Conclusion
​Section 314(b) continues to serve as one of the most valuable tools available to financial institutions for identifying, disrupting, and reporting money laundering, terrorist financing, fraud, and other illicit financial activity that often spans multiple institutions. FinCEN’s 2026 Fact Sheet reinforces the agency’s expectation that eligible institutions use the authority proactively and confirms that information sharing may be broader, faster, and more operationally effective than many institutions previously understood. For Nebraska banks, the guidance underscores the value of participating in the NBA’s Fraud and Security Community Platform and other lawful information-sharing initiatives to better identify emerging fraud trends, cyber-enabled crime, and other evolving threats. By maintaining appropriate 314(b) registrations, policies, controls, and documentation practices, banks can leverage the statute’s safe harbor protections to strengthen investigations, enhance BSA/AML compliance, protect customers, and improve the collective ability of the financial sector to combat financial crime. 

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The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.