The FinCEN Exchange is FinCEN’s voluntary public-private information sharing partnership among law enforcement, national security agencies, financial institutions, and FinCEN aimed at effectively and efficiently combating money laundering, terrorism financing, organized crime, and other financial crimes; protecting the financial system from illicit use; and promoting national security. FinCEN believes that financial information sharing is most effective when information flows in both directions between the public and private sectors in specific authorized ways. Operating under FinCEN’s legal authorities, including but not limited to 31 U.S.C. § 310(b)(2)(E) (“FinCEN authorities”), FinCEN launched the FinCEN Exchange on December 4, 2017 to provide financial institutions with additional information about priority issues on a more regular basis. On January 1, 2021, Congress enacted the Anti-Money Laundering Act of 2020 (AML Act). Section 6103 of the AML Act, codified at 31 U.S.C. § 310(d), formally establishes the FinCEN Exchange.
Providing financial institutions with information allows financial institutions to focus on specific illicit finance and national security threats under their existing Bank Secrecy Act (BSA) compliance obligations and, when appropriate, file Suspicious Activity Reports (SARs). In turn, this enhanced reporting assists FinCEN and law enforcement in detecting, preventing, and prosecuting terrorism, organized crime, money laundering, and other financial crimes.
FinCEN is authorized to furnish research, analytical, and informational services to financial institutions in the interest of detection, prevention, and prosecution of terrorism, organized crime, weapons proliferation, money laundering, and other financial crimes. Pursuant to this goal, FinCEN leverages the private sector’s existing anti-money laundering/combating the financing of terrorism (AML/CFT) compliance programs by: 1) providing a program for sharing specific law enforcement-approved information and FinCEN information to financial institution participants; 2) receiving quality and useful information via SARs from financial institution participants that are equipped with enhanced information, feedback, and analysis; and 3) providing new typology information to the broader financial sector gained through FinCEN Exchange, as appropriate.
FinCEN will continue to work with law enforcement agencies, national security agencies, and financial institutions to develop, grow, and refine FinCEN Exchange so that the program and FinCEN continue to provide effective and innovative public-private information sharing on priority illicit finance and national security challenges.
For additional information about FinCEN Exchange, please see FinCEN’s press release announcing the launch of the FinCEN Exchange program.