What is the purpose of 314(b) under the USA Patriot Act?

The purpose of 314(b) under the USA Patriot Act is to facilitate collaboration among financial institutions to combat money laundering and terrorist financing. This provision allows for the sharing of information between financial institutions regarding individuals or entities that they suspect may be involved in such illicit activities. By enabling this cooperative effort, financial institutions can more effectively identify and address potential threats related to money laundering and terrorism financing.

This collaborative information sharing enhances the overall effectiveness of the compliance programs in place and improves the institutions’ ability to detect and report suspicious activities to the appropriate authorities. The provision is instrumental in strengthening the financial system's defenses against criminal misuse while maintaining compliance with regulatory expectations.