The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) on Monday unveiled new guidance encouraging financial institutions to voluntarily share information across borders in a bid to strengthen the global fight against money laundering, terrorist financing, and other illicit finance activity.
The guidance clarifies that while financial institutions remain strictly barred from disclosing Suspicious Activity Reports (SARs) or any information that would reveal the existence of a SAR, U.S. law does not prohibit the broader exchange of financial intelligence between domestic and foreign institutions.
By easing concerns about regulatory restrictions, officials hope the move will foster closer collaboration against criminal actors ranging from drug cartels and foreign terrorist organizations to sophisticated fraud networks.
“Cross-border information sharing is a critical tool in identifying and disrupting illicit financial flows that undermine both U.S. and international financial systems,” FinCEN said in a statement.
Regulatory Backing
The guidance, developed in consultation with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, seeks to provide clarity for banks and credit unions that may have hesitated to share data with foreign counterparts for fear of compliance breaches.
Officials emphasized that while SAR confidentiality remains paramount, institutions can and should engage in broader risk-focused cooperation to detect patterns of illicit behavior that may span multiple jurisdictions.
A Nod to Digital Asset Oversight
The initiative also ties into the Biden administration’s wider digital finance agenda. In particular, it aligns with recommendations made by the President’s Working Group on Digital Asset Markets in its report, “Strengthening American Leadership in Digital Financial Technology.” That report urged stronger information sharing frameworks as digital assets increasingly facilitate cross-border payments and, in some cases, illicit finance.
A Global Approach
The guidance reflects a growing recognition that financial crime is transnational by nature, and that siloed oversight hampers enforcement. U.S. regulators hope the move will encourage more proactive, voluntary exchanges of information among banks, credit unions, and their overseas counterparts — providing investigators with a clearer picture of how illicit funds move through the global financial system.
Industry experts say the new guidance could help bridge long-standing gaps in global anti-money laundering (AML) and counter-terrorist financing efforts, though its voluntary nature means the impact will depend on how vigorously institutions embrace the opportunity.
For more information, the full guidance can be accessed below.
By FCCT Editorial Team
