Criminal networks are vast and highly efficient – they are not constrained by borders or technology when plotting and financing terrorist activities. As recently highlighted in FinCEN’s alert on red flags to identify terrorist financing, financial institutions must be vigilant in detecting and preventing potentially suspicious activity related to money laundering and terrorist financing.
Complementing their alert, FinCEN released a subsequent report on the importance of information sharing to combat terrorist financing, stating:
“FinCEN strongly encourages all financial institutions to register under USA PATRIOT Act Section 314(b) and to form associations to engage in voluntary information sharing. Section 314(b) information sharing can reveal networks of illicit activity that no single financial institution can detect alone, compounding the benefits for both the financial institution and law enforcement.”
– READOUT: FinCEN Hosts Public-Private Dialogue on Cyber-Related Terrorism Financing
Strengthening Investigations with Information Sharing
AML/CFT investigations can only go so far in isolation. Criminals are clever – always leveraging new and advanced technologies to launder funds for illicit means. Conversely, financial institutions can be hampered by legacy systems and are limited to their own internal, siloed data – which provides a limited snapshot of the true nature of criminal activity. To create the strongest investigation possible, with actionable information for law enforcement, institutions need to see beyond their own four walls.
Innovative technology and collaborative approaches, powered by secure information sharing technology, can help institutions work together to better combat evolving financial crime threats, from individual bad actors to organized transnational criminal organizations.
Leveraging Verafin’s FRAMLxchange to Combat Terrorist Financing
Information sharing is a key component to stopping financial crime. With secure information sharing technology, financial crime investigators can leverage shared information and expertise by working with peer investigators at other institutions to strengthen investigations and uncover potentially suspicious activity.
Verafin provides 314(b) information sharing technology for 2700 institutions as members of the FRAMLxchange, the industry’s largest network of 314(b)-registered institutions. FRAMLxchange is registered with FinCEN for 314(b) information sharing as an association of financial institutions – a 314(b)-registered financial institution can join the FRAMLxchange network at any time.
The FRAMLxchange offers 314(b)-registered institutions the ability to collaborate with other financial institutions in the secure Verafin platform. Investigators can efficiently and effectively communicate with verified 314(b)-registered contacts at other institutions, manage group collaborations including multiple institutions, and document and report on AML/CFT investigations, all under the 314(b) safe harbour.
Want to learn more? Read our product brochure, FRAMLxchange 314(b) Collaboration Network