ALEXANDRIA, Va. ― NCUA said it is highlighting anti-fraud and other updates published in recently revised 314(b) guidance by the Financial Crimes Enforcement Network (FinCEN).
“Credit unions who elect to participate in the 314(b) program may benefit from this revised guidance to share information, mitigate potential losses, or increase suspicious activity detection,” the agency said. “Participating credit unions can obtain legal protections to share information about fraud, money laundering, terrorist financing, sanctions evasion, and additional criminal activity with other program participants. The section 314(b) program provides financial institutions with the flexibility and connectivity to counter such threats by allowing them to identify repeat actors or financial schemes that move across financial institutions to evade detection, which limits the exploitation of information gaps in the financial system.”
In addition, NCUA said FinCEN’s revised guidance highlights and clarifies the benefits available to registered participants, including the ability to share information in real-time, under what circumstances information can be shared, and how information can be shared.
Details Addressed
According to NCUA, the following additional details are also addressed:
- Institutions can share information that does not constitute a legal transaction, but can include an attempt to engage in a transaction
- Information can be shared even if the sharing entity has no reason to believe that the information relates to a specific customer, account, or transaction of the financial institution receiving the information
- New examples discuss the types of information that can be shared, such as video surveillance footage, cyber-related data such as IP addresses, and fraud indicators
The agency said credit unions can read the complete guidance for further information, which also clarifies that the sharing and receiving institutions must maintain adequate procedures to protect information security and confidentiality when participating in the program.
NCUA also reminded that participation in FinCEN’s 314(b) information sharing program is entirely voluntary. Credit unions wishing to participate can register through FinCEN’s website.
