BSA/AML Examiner Training Series 2

31 CFR Chapter X – Financial Crimes Enforcement Network (Continued)

Code

Failure to report to FinCEN accounts or transactions Section 1010.520(b)(3)(ii) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to report to the Financial Crimes Enforcement Network (FinCEN) information specified in this Section if the insured financial institution identifies an account or transaction identified with any individual, entity, or organization named in a request from FinCEN. Failure to designate contact person or provide contact information Section 1010.520(b)(3)(iii) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to designate one person to be the point of contact upon receiving an information request from the Financial Crimes Enforcement Network (FinCEN), and for receiving similar information requests from FinCEN in the future. A covered financial institution is also required to provide FinCEN with the name, title, mailing address, e-mail address, telephone number, and facsimile number of such person when requested by FinCEN. This Section further requires that a covered financial institution must notify FinCEN of any changes to contact information. Using or disclosing information for purposes other than those allowed Section 1010.520(b)(3)(iv)(A) and (B) of the Treasury Department’s Bank Secrecy Act regulations prohibits a covered financial institution from using or disclosing information provided by the Financial Crimes Enforcement Network for purposes other than those allowed by this Section. Lack of adequate procedures to protect security and confidentiality of information Section 1010.520(b)(3)(iv)(C) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to maintain adequate procedures to protect the security and confidentiality of information requests from the Financial Crimes Enforcement Network under this Section. Failure to submit notice to FinCEN to share information Section 1010.540(b)(2) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution or an association of financial institutions that intends to share information as described in paragraph (b)(1) of this Section, to submit a notice to the Financial Crimes Enforcement Network. This Section further requires a new notice to be submitted in order to continue engaging in the sharing of information after the end of a one-year period. Failure to verify that another financial institution has submitted notice to FinCEN Section 1010.540(b)(3) of the Treasury Department’s Bank Secrecy Act regulations requires that prior to sharing information as described in (b)(1) of this Section, a covered financial institution or an association of financial institutions must take reasonable steps to verify that the other financial institution or association of financial institutions, with which it intends to share information, has filed a notice with the Financial Crimes Enforcement Network.

70,001

70,002

70,003

70,004

71,000

71,001

Revised 5/3/2023

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