FinCEN Moves to Bolster Cross-Border AML Information Sharing, Reaffirms SAR Confidentiality

Key Takeaways

• Encouraging AML Collaboration: FinCEN issued new guidance urging U.S. financial institutions to share information with foreign affiliates and correspondent banks to strengthen global anti-money laundering (AML) efforts.
• SAR Protections Intact: The Bank Secrecy Act (BSA) still prohibits disclosure of Suspicious Activity Reports (SARs) or any indication that one was filed.
• Underlying Data Shareable: Transaction logs, customer due diligence records, beneficial ownership data, and cyber identifiers can be shared, provided they don’t reveal SAR filings.
• Global Threat Focus: The move targets money laundering, terrorist financing, drug trafficking, and fraud, which often exploit cross-border gaps.
• No New Obligations: The guidance does not create new compliance requirements but clarifies what firms may already do under existing rules.

Deep Dive

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) is calling on financial institutions to lean into cross-border cooperation in the fight against money laundering and terrorist financing, while making clear that the wall protecting Suspicious Activity Reports (SARs) remains firmly in place.

In guidance issued September 5, 2025, and developed alongside the OCC, FDIC, and NCUA, FinCEN encouraged banks, credit unions, and other financial firms to share information with foreign affiliates and correspondent institutions when it could help uncover illicit finance. The agency stressed that the Bank Secrecy Act (BSA) does not prevent this type of sharing, so long as firms avoid disclosing SARs themselves or hinting at whether one was filed.

Illicit finance rarely respects borders. Drug trafficking networks, fraudsters, and terrorist organizations move money across jurisdictions, often exploiting gaps between regulators and financial systems. FinCEN’s message is that voluntary, responsible information sharing (transaction records, beneficial ownership data, due diligence research, even cyber identifiers like IP addresses) can help institutions piece together a fuller picture of risk.

That broader picture, in turn, strengthens AML and counter-terrorism financing programs, producing more meaningful intelligence for law enforcement and national security agencies.

Guardrails on SAR Confidentiality

Still, one line remains non-negotiable: SAR confidentiality. The BSA continues to prohibit disclosure of a SAR or anything that explicitly confirms or denies its existence. What institutions may share, however, are the “underlying facts” that prompted the filing, such as suspicious transaction logs or customer due diligence records, provided they don’t explicitly reveal a SAR decision.

FinCEN offered concrete examples of what can be safely shared, from wire transfer details to occupation and source-of-funds information. The guidance also reminded firms to take precautions like redacting sensitive details and to consult legal obligations under U.S. privacy laws or foreign regimes before engaging in cross-border sharing.

Responding to Requests

If a financial institution receives a subpoena or outside request for SARs, don’t hand anything over. Instead, notify FinCEN’s Office of Chief Counsel and the institution’s primary federal regulator. Unauthorized disclosure of SARs remains a violation of federal law.

Crucially, FinCEN emphasized that this guidance does not create new compliance requirements. It does not replace earlier advisories or alter the scope of existing safe harbors under Section 314(b) of the USA Patriot Act. Instead, it aims to clarify what financial institutions already can, and cannot, do, with the hope of spurring stronger cross-border AML collaboration without sacrificing SAR protections.

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