Proposed pilot program would aim to combat illicit finance risks

The Financial Crimes Enforcement Network this week issued a notice of proposed rulemaking on the establishment of a limited-duration pilot program for sharing suspicious activity reports in accordance with Section 6212 of the Anti-Money Laundering Act of 2020.

The pilot program would permit a financial institution with a SAR reporting obligation to share SARs and information related to SARs with the institution’s foreign branches, subsidiaries, and affiliates in an effort to combat illicit finance risks, subject to approval and conditions set by FinCEN. 

The proposed rule aims to ensure that the sharing of information is limited by the requirements of federal and state law enforcement, takes into account potential concerns of the intelligence community, and is subject to appropriate standards and requirements regarding data security and the confidentiality of personally identifiable information, according to FinCEN.  

FinCEN is encouraging interested parties, including those that may want to participate in the SAR sharing pilot program when it is finalized, to submit written comments by March 28 through the Federal Register.

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