Introduction to FinCEN Exchange
On January 1, 2021, Congress enacted the Anti-Money Laundering Act of 2020 (AML Act). Section 6103 of the AML Act establishes the FinCEN Exchange to facilitate a voluntary public-private information-sharing partnership between law enforcement agencies, national security agencies, financial institutions, and FinCEN to effectively and efficiently combat money laundering, terrorism financing, organized crime and other financial crimes; protect the financial system from illicit use; and promote national security.
The objective of FinCEN Exchange is to develop, deliver, and sustain innovative public-private information sharing in order to enable the private sector to better identify risks and provide FinCEN and law enforcement with critical information to disrupt money laundering, terrorism financing, and other financial crimes.
- Enhance communication, collaboration and partnerships among FinCEN, law enforcement, and financial institutions
- Support priority national security and counter-illicit finance investigations and policies
- Enhance the utility of suspicious activity reports (SARs) and share feedback with the private sector
- Encourage, enable, and acknowledge a focus on high-value and high-impact activities
- Conduct proactive outreach to allow industry to better prioritize efforts and utilize existing resources
How It Works
FinCEN Exchange operates under all permissible legal authorities, including but not limited to: Section 6103 of the AML Act, and FinCEN’s authority to furnish information to financial institutions in the interest of detection, prevention, and prosecution of terrorism, organized crime, money laundering, and other financial crimes under 31 U.S.C. § 310.
In close coordination with law enforcement, FinCEN will furnish financial institutions with actionable typologies to help them identify illicit activity and provide information in support of specific matters.
FinCEN Exchange is an invitation-based program. Participation is determined by FinCEN through consultation with law enforcement and other relevant stakeholders as well as consideration of factors relevant to the particular subject. Participation in FinCEN Exchange is voluntary for financial institutions that receive an invitation from FinCEN.
Financial institutions invited to participate in FinCEN Exchange are encouraged to register, if not already registered, under USA PATRIOT Act Section 314(b) and to share information voluntarily with other authorized financial institutions, as appropriate. FinCEN oversees the registration of the 314(b) program, which is voluntary and authorizes certain information sharing among participating financial institutions. Registration under 314(b) or participation in a FinCEN Exchange briefing does not obligate the financial institution to participate in 314(b) information sharing.