CAMS · Question #913
Which regulation permits financial institutions, upon providing notice to the US Department of the Treasury, to share information with one another in order to identify and report activities that may…
The correct answer is D. USA Patriot Act Section 314(b). USA PATRIOT Act Section 314(b)allows financial institutions tovoluntarily share information with one another, after notifying the U.S. Treasury, toidentify and report possible money laundering or terrorist financing activities. Key elements include: Voluntary participation…
Question
Which regulation permits financial institutions, upon providing notice to the US Department of the Treasury, to share information with one another in order to identify and report activities that may involve money laundering or terrorist activity to the federal government?
Options
- ARegulation (EU) 2024/1624 of the European Parliament
- BCollaborative Sharing of Money Laundering/Terrorism Financing (ML/TF) Information & Cases
- CUSA Patriot Act Section 314(a)
- DUSA Patriot Act Section 314(b)
How the community answered
(36 responses)- A6% (2)
- B8% (3)
- C14% (5)
- D72% (26)
Explanation
USA PATRIOT Act Section 314(b)allows financial institutions tovoluntarily share information with one another, after notifying the U.S. Treasury, toidentify and report possible money laundering or terrorist financing activities. Key elements include: Voluntary participation Prior notice to FinCEN (part of the U.S. Treasury) Protection from liability when acting in good faith Enhanced collaborative detection across institutions Section 314(a)refers toinformation sharing between law enforcement and financial institutions, not peer-to-peer sharing. COSMICis an initiative in certain jurisdictions like Singapore, not U.S. regulation. Regulation (EU) 2024/1624is part of the EU AML framework, not relevant to U.S. institutions.
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