Major banks call on US Treasury to allow more information sharing

The US Treasury should allow banks in the US to share suspicious activity reports according to the body that represents some of the world’s largest financial institutions.

The Clearing House made its call in a letter submitted to the treasury’s Financial Crimes Enforcement Network (FinCen).

Industry calls
The industry group has specifically asked FinCen for guidance that will better enable banks to share suspicious activity reports (SARs) within their international organisations for enterprise-wide anti-money laundering (AML) compliance purposes.

FinCen regulations and guidance currently prohibit US depository institutions from sharing SAR information with any foreign branch or affiliate.

Guidance sought
The group says these restrictions impede the ability of globally active US depository institutions to conduct effective enterprise-wide AML risk management, assessment and activity monitoring.

The Clearing House wants FinCen to issue written guidance that allows a depository institution to share SARs with a foreign branch or affiliate, so long as that branch or affiliate meets certain provisos.

More sharing
The provisos suggested by the group include that the branch or affiliate is located in a country that is a member of the Financial Action Task Force or has entered into a written confidentiality agreement or arrangement with the US depository institution.

The Clearing House also wants FinCen to clarify its position on sharing the underlying facts, transactions, and documents upon which a SAR is based.

Categories: Trade Based Financial crimes News

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