Who can share information under 314(b), and what notice must be filed with FinCEN first?

Eligibility turns on whether you are a financial institution described in 31 U.S.C. 5312(a)(2) that must establish and maintain an AML program under 31 CFR chapter X (or is treated under that chapter as having satisfied 31 U.S.C. 5318(h)(1)), and whether FinCEN has designated your class as ineligible. Before you share, you must submit a notice to FinCEN, and it lasts one year. (31 CFR 1010.540(a)(1), (b)(2))

What the rule says:

• An association can also share if its membership is made up entirely of eligible financial institutions. (31 CFR 1010.540(a)(2))
• A financial institution that intends to share must submit to FinCEN a notice described on FinCEN's website. Each notice is effective for one year beginning on the date of the notice, and a new notice is needed to keep sharing after that. (31 CFR 1010.540(b)(2))
• Notices can be submitted through FinCEN's website or, if the institution has no Internet access, by mail. (31 CFR 1010.540(b)(2))
• Before sharing, you must take reasonable steps to verify that the other institution has submitted its notice. You can do that by confirming it appears on the list FinCEN periodically makes available, or by confirming directly with it. (31 CFR 1010.540(b)(3))
• Information received may be used only to identify and, where appropriate, report money laundering or terrorist activities, to decide whether to establish or maintain an account or engage in a transaction, or to help you comply with chapter X. (31 CFR 1010.540(b)(4)(i))
• You must maintain adequate procedures to protect the security and confidentiality of the information. This is deemed satisfied to the extent you apply procedures you have already established under section 501 of the Gramm-Leach-Bliley Act for customers' nonpublic personal information. (31 CFR 1010.540(b)(4)(ii))
• The safe harbor from liability does not apply to the extent you fail to comply with the notice, verification, or use and security requirements. (31 CFR 1010.540(b)(5)(ii))

What to do:

1. Confirm that you are required to maintain an AML program under chapter X, and check FinCEN's current ineligibility designations for your class before filing.
2. File the notice, and calendar a new one before the year ends.
3. Verify each counterparty's notice before you share.
4. Limit use of what you receive to the permitted purposes and protect its confidentiality.

Sources

1. 31 CFR § 1010.540(a), (b)(1): https://www.law.cornell.edu/cfr/text/31/1010.540
2. 31 CFR 1010.540 (eCFR): https://www.ecfr.gov/current/title-31/section-1010.540

This answer is general information, not legal advice. Forteris is not a law firm.