On June 12, 2026, the Financial Crimes Enforcement Network (FinCEN) issued updated guidance clarifying how financial institutions, including money services businesses (MSBs), may use Section 314(b) of the USA PATRIOT Act to share information about suspected fraud.
While many institutions have historically associated 314(b) information sharing with money laundering and terrorist financing investigations, FinCEN’s latest guidance makes it clear that financial institutions can also share information to identify, report, and prevent fraud-related activity.
For MSBs, this development represents an important enhancement to existing fraud prevention and AML/CFT efforts.
Expanding the Role of 314(b)
For years, many MSBs viewed 314(b) primarily as a tool for AML investigations. FinCEN’s guidance reinforces that fraud and money laundering are often interconnected and that information sharing can play a critical role in detecting both.
The guidance helps eliminate uncertainty surrounding whether institutions can collaborate regarding suspected fraud activity before a money laundering ring has been fully established.
This clarification provides MSBs with another tool to strengthen their fraud detection and suspicious activity monitoring programs.
Why This Matters for MSBs
Fraud schemes rarely occur within a single institution. Criminals frequently move funds through multiple financial institutions, money transmitters, payment processors, fintech platforms, and banks to obscure the source and destination of illicit funds.
As a result, an individual MSB may only see a small portion of a much larger fraud scheme. The updated guidance reinforces the ability of financial institutions participating in FinCEN’s voluntary 314(b) program to share information when they suspect fraudulent activity, helping identify patterns that may otherwise remain undetected.
This can be especially valuable when investigating:
- Cross-border fraud networks
- Money mule activity
- Elder financial exploitation
- Account takeover schemes
- Synthetic identity fraud
- Romance and investment scams
- Business email compromise fraud
- Human trafficking and labor exploitation schemes
Financial Institution Registration
In order to become an authorized financial institution, organizations need to participate in the section 314(b) program and register with FinCEN.
A financial institution will only benefit from the section 314(b) safe harbor protection if it participates in the program. To participate, follow these steps:
- Request access to the Financial Industry Portal (FI Portal) by selecting FI Access Request.
- Once approved, log in to the FI Portal, navigate to the Section 314(b) registration page, and submit registration. Registrations are processed automatically.
Real-World Applications
Understanding how Section 314(b) information sharing works, what information may be exchanged, and the limitations that remain in place is critical for maintaining compliance while maximizing the benefits of the program.
However, it is important that before sharing information, financial institutions must verify that the other institution is a registered participant in FinCEN’s Section 314(b) program. Participating institutions can use the FinCEN FI Portal to access a searchable directory of registered participants and their designated contact information.
The following example illustrates how an MSB can leverage Section 314(b) information sharing to support fraud investigations and strengthen its overall AML/CFT program.
MSB Example
An MSB identifies a customer sending multiple money transfers to different recipients across several states. The transaction activity appears consistent with a potential money mule scheme.
To further investigate, the MSB contacts another financial institution that is registered under Section 314(b) (searched on FI Portal) and inquires whether it has observed similar activity involving the same customer or recipients.
The second institution confirms that it has identified related transactions and additional suspicious activity. By sharing information, the institutions are able to connect activity occurring across multiple organizations and uncover a broader fraud network that neither institution could have identified independently.
Information That May be Shared
Financial institutions may share information verbally, in writing, or through secure electronic channels when the information is reasonably necessary to identify, report, or prevent suspicious activity. Shareable information examples include:
- Customer identifying information
- Account information
- Transaction details and patterns
- Flow of funds information
- Investigative findings and red flags
- The facts and circumstances that led to the suspicion
Information That May NOT be Shared
One of the most important restrictions under Section 314(b) is that Suspicious Activity Reports (SARs) and information that would reveal the existence of a SAR cannot be disclosed.
Examples of prohibited disclosures include:
- Informing another institution that a SAR has been filed
- Disclosing whether a SAR will be filed
- Sharing the contents of a SAR
- Revealing information that would indirectly disclose the existence of a SAR
A Broader Regulatory Trend
The updated guidance is part of a broader federal effort emphasizing collaboration, fraud prevention, and intelligence sharing across the financial services industry. Earlier this year, the White House established the Task Force to Eliminate Fraud, led by Vice President JD Vance, to coordinate government and private-sector efforts to combat the growing threat of fraud and related financial crimes.
FinCEN’s latest guidance aligns with this initiative by encouraging financial institutions to leverage existing information-sharing tools to identify, report, and prevent fraudulent activity more effectively.
For MSBs, this signals that regulators increasingly expect financial institutions to use available resources, technology, and collaborative frameworks to identify emerging threats and protect the financial system from fraud, money laundering, and other illicit activity.
Participating in information-sharing initiatives can improve investigative effectiveness, enhance suspicious activity reporting, and strengthen the overall effectiveness of the AML/CFT program.
Compliance Considerations for MSBs
MSBs should consider reviewing their current compliance framework to determine whether they are maximizing the benefits of 314(b) participation.
Questions to consider include:
- Is the organization registered to participate in FinCEN’s 314(b) information-sharing program?
- Do policies and procedures address information sharing related to fraud investigations?
- Have fraud alerts been incorporated into transaction monitoring and escalation procedures?
- Are employees trained to identify situations where 314(b) information sharing may be beneficial?
- Does the institution document and maintain appropriate records of information-sharing activities?
What’s Next?
FinCEN’s updated 314(b) guidance is more than a technical clarification. It reinforces the importance of collaboration in combating fraud and other financial crimes. By expanding the ability of financial institutions, including MSBs, to share information related to suspected fraud, the guidance provides an additional tool for identifying illicit activity before it escalates into larger and more complex criminal schemes.
As fraud tactics continue to evolve, effective information sharing can play a critical role in strengthening investigations, enhancing suspicious activity detection, and improving the overall effectiveness of the AML/CFT program.
MSBs should evaluate their current participation in the 314(b) program and determine whether updates to policies, procedures, training, and monitoring processes are necessary to fully leverage this guidance.
If your organization needs assistance assessing its AML/CFT program, enhancing fraud controls, or strengthening compliance processes, our team of experts is ready to help.
Tags: AML, AML/CFT Program, Anti Money Laundering, Financial Crimes Enforcement Network, FinCEN, Money Services Business, MSB, SAR, Suspicious Activity Report, USA PATRIOT Act
