The Treasury Department’s Financial Crimes Enforcement Network launched an information exchange program to help banks deal with financial threats.
FinCEN said earlier this month the exchange will work “in close coordination with law enforcement.”
The program will include regular briefings with financial institutions to exchange information on “priority illicit finance threats.”
FinCEN said it hopes the exchange will help it and law enforcement receive information “to disrupt money laundering and other financial crimes.”
Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence, said: “Strong public-private partnerships and two-way information sharing is a crucial component of our efforts to combat the sophisticated money laundering methods and evolving threats we face today.”
She said the exchange program “can help identify vulnerabilities and disrupt terrorist financing, proliferation financing and other financial crimes.”
FinCEN already collects financial intelligence from financial institutions. Those include casinos, banks, insurance companies, money services business, mortgage companies, precious metals and jewelry dealers, and securities and futures companies.
The financial institutions’ participation in the new exchange program is strictly voluntary, FinCEN said. And the exchange doesn’t introduce any new regulatory requirements.
“It also does not replace or otherwise affect existing mechanisms by which law enforcement engages directly with the financial industry,” FinCEN said.
Richard L. Cassin is the publisher and editor of the FCPA Blog.