Blue Box Notice Covid 19

Source document: Blue Box Notice Covid 19; document type: FinCEN notice (companion to the COVID-19 advisory series).

Full text

1
Notice Related to the
Coronavirus Disease 2019 (COVID-19)
The Financial Crimes Enforcement Network (FinCEN) is issuing this Notice as part of FinCEN’s
COVID-19-related response.  This Notice contains pertinent information regarding reporting
COVID-19-related criminal and suspicious activity and reminds financial institutions of certain
Bank Secrecy Act (BSA) obligations.  FinCEN intends to issue multiple COVID-19-related
advisories.  Each advisory will refer financial institutions to this Notice.
COVID-19-Related Updates to Financial Institutions
FinCEN has published notices on its website that provide information to assist financial institutions
in complying with their BSA obligations during the COVID-19 pandemic, which include a direct
contact mechanism for urgent COVID-19-related issues.  FinCEN encourages financial institutions
to monitor FinCEN’s website and the Department of the Treasury’s website on The Coronavirus
Aid, Relief, and Economic Security (CARES) Act for up-to-date information concerning compliance
with BSA obligations.1
BSA Reporting Obligations
Compliance with the BSA remains crucial to protecting our national security by combating money
laundering and related crimes, including terrorism and its financing.  FinCEN expects financial
institutions to continue following a risk-based approach and to diligently adhere to their BSA
obligations.  FinCEN also appreciates that financial institutions are taking actions to protect
employees, their families, and others in response to the COVID-19 pandemic.  FinCEN recognizes
that current circumstances may create challenges with respect to certain BSA obligations,
including the timing requirements for certain BSA report filings.  FinCEN will continue outreach
to regulatory partners and financial institutions to ensure risk-based compliance with the BSA, and
FinCEN will issue additional information as appropriate.2
1.	 For up-to-date information on FinCEN’s COVID-19-related releases, please visit FinCEN’s Coronavirus Updates at https://www.
fincen.gov/coronavirus.  Those interested in receiving notifications from FinCEN may sign up for FinCEN Updates, at no charge,
to receive updates with links to new information when content is added to FinCEN’s website for any of the enrolled user’s selected
categories.  For up-to-date information concerning the Department of the Treasury’s CARES Act information, please visit
https://home.treasury.gov/policy-issues/cares.
2.	 See FinCEN Notice, “The Financial Crimes Enforcement Network Provides Further Information to Financial Institu­
tions in Response to the Coronavirus Disease 2019 (COVID-19) Pandemic,“ (April 3, 2020).
May 18, 2020
FinCEN updated its USA PATRIOT Act Section 314(b) Fact Sheet in December 2020. The Fact Sheet,
which addresses safe harbor protections in connection with certain private-sector information sharing,
supersedes the material concerning information sharing provided below.

F I N C E N  N O T I C E
2
Financial institutions that wish to communicate their organizational COVID-19-related concerns,
such as issues with the timely filing of BSA reports, should go to www.fincen.gov, click on “Need
Assistance,” and select “COVID19” in the subject drop-down list.
SAR Filing Instructions
In light of the COVID-19 pandemic, some financial institutions have added COVID-19 statements
to their disclaimers or are using SAR narratives to address COVID-19’s impact on their SAR filing
abilities.  Financial institutions should not include in the SAR narrative their challenges during the
pandemic; the SAR narrative should include COVID-19 when it is tied to suspicious activity only.
However, filers who have already included references to COVID-19 in matters not related to the
pandemic do not need to file corrected reports.
Provision of SAR Supporting Documentation
to Law Enforcement and FinCEN
In order to effectively respond to and combat fraud schemes, (e.g. those exploiting the COVID-19
pandemic), law enforcement and FinCEN require full details related to SAR filings, including
supporting documentation, as quickly as possible.
When a financial institution files a SAR, it is required to maintain a copy of the SAR and the
original or business record equivalent of any supporting documentation for a period of five years
from the date of filing the SAR.3  Financial institutions must provide any requested SAR and all
documentation supporting the filing of a SAR upon request by FinCEN or an appropriate law
enforcement or supervisory agency.4  When requested to provide supporting documentation,
financial institutions should verify that a requestor of information is, in fact, a representative of
FinCEN or an appropriate law enforcement or supervisory agency.
Disclosure of SARs and supporting documentation to appropriate law enforcement and
supervisory agencies is protected by the safe harbor provisions applicable to both voluntary and
mandatory suspicious activity reporting by financial institutions.5
Information Sharing
Information sharing among financial institutions is critical to identifying, reporting, and preventing
evolving fraud schemes, including those related to COVID-19.  Financial institutions sharing
information under the safe harbor authorized by section 314(b) of the USA PATRIOT Act are
reminded that they may share information relating to transactions that the institution suspects may
3.	 See 31 C.F.R. §§ 1020.320(d), 1021.320(d), 1022.320(c), 1023.320(d), 1024.320(c), 1025.320(d), and 1026.320(d).
4.	 Id.  See also FinCEN Guidance, FIN-2007-G003, “Suspicious Activity Report Supporting Documentation,”
(June 13, 2007).
5.	 See 31 U.S.C. § 5318(g)(3).

F I N C E N  N O T I C E
3
involve the proceeds of one or more specified unlawful activities (“SUAs”) and such an institution
will still remain protected from civil liability under the section 314(b) safe harbor.  The SUAs listed
in 18 U.S.C. §§ 1956 and 1957 include an array of fraudulent and other criminal activities, including
fraud against individuals or the government.  FinCEN strongly encourages information sharing via
section 314(b) where financial institutions suspect that a transaction may involve terrorist financing
or money laundering, including one or more SUAs.6
Reporting COVID-19-Related Criminal Activity
There are a variety of U.S. government agencies positioned to assist in investigating and combating
COVID-19-related criminal activity.  Financial institutions and their customers should consider
reporting COVID-19 crimes to the following agencies:
COVID-19-Related Fraud Schemes:  Department of Justice (DOJ) urges the public to report
suspected fraud schemes related to COVID-19 by calling the National Center for Disaster
Fraud (NCDF) hotline (1-866-720-5721).7  The NCDF can receive and enter complaints into
a centralized system that can be accessed by all U.S. Attorney Offices, as well as DOJ law
enforcement components, to identify, investigate, and prosecute fraud schemes.  The NCDF
coordinates complaints with 16 additional federal law enforcement agencies, as well as state
Attorneys General and local authorities.  The public may also report CARES Act-related fraud
or other COVID-19-related financial crime to the U.S. Secret Service (USSS) by contacting their
local USSS field office.  Additionally, Department of Homeland Security (DHS) (including
Homeland Security Investigations (HSI) and Immigration and Customs Enforcement) encourages
the reporting of COVID-19 financial, cyber, and import/export fraud via the Operation Stolen
Promise website / intake email address.
Cyber- and Internet-related Crime:  Federal Bureau of Investigation’s (FBI) Crime Complaint Center
(IC3);8 the DHS’s CISA National Cybersecurity Communications and Integration Center (NCCIC);
and HSI’s Operation Stolen Promise fraud intake.9
Identity Theft and Fraud:  The Federal Trade Commission and the Social Security Administration
fraud hotline (1-800-269-0271).
Federal Tax Fraud:  Fraud involving payment of federal taxes should be reported to the Treasury
Inspector General for Tax Administration.
6.	 For further guidance related to the 314(b) Program, see FinCEN Fact Sheet, “Section 314(b)” (November 2016) and Fin­
CEN Guidance, FIN-2009-G002, “Guidance on the Scope of Permissible Information Sharing Covered by Section 314(b)
Safe Harbor of the USA PATRIOT Act,” (June 16, 2009).
7.	 See DOJ Press Release, “Attorney General William P. Barr Urges American Public to Report COVID-19 Fraud,” (March
20, 2020).
8.	 See the FBI’s IC3 website, https://www.ic3.gov/.
9.	 See HSI “Operation Stolen Promise” website, HSI COVID-19 Fraud website,  https://www.ice.gov/topics/operation-sto­
len-promise.

F I N C E N  N O T I C E
4
For Further Information
Questions or comments regarding the contents of this advisory should be addressed to the FinCEN
Regulatory Support Section at frc@fincen.gov.
The mission of the Financial Crimes Enforcement Network is to safeguard
the financial system from illicit use, combat money laundering and its
related crimes including terrorism, and promote national security through
the strategic use of financial authorities and the collection, analysis, and
dissemination of financial intelligence.
Response and Recovery of Funds
To better assist the public during the COVID-19 pandemic, FinCEN has temporarily expanded its
Rapid Response Program to support law enforcement and financial institutions in the recovery of
funds stolen via fraud, theft, and other financial crimes related to COVID-19.  FinCEN has already
been involved in multiple Rapid Response matters involving allegations of COVID-19 fraud, to
include assisting in the recovery of $300 million in one case.  To request immediate assistance
in recovering cybercrime- and COVID-19-related stolen funds, financial institutions should file
a complaint with the FBI’s IC3, contact their local FBI field office, or contact the nearest USSS
field office.  Contacting law enforcement for fund recovery assistance does not relieve a financial
institution from its SAR filing obligations.
FinCEN, in partnership with the FBI, the USSS, HSI, and the U.S. Postal Inspection Service, as well
as counterpart Financial Intelligence Units abroad, can help financial institutions recover funds
stolen as the result of business email compromise (BEC) and cybercrime schemes through its Rapid
Response Program.  Through these partnerships, FinCEN has successfully assisted in the recovery
of approximately $900 million with the assistance of 64 countries.  While FinCEN does not ensure
recovery of BEC stolen funds, FinCEN has achieved greater success in recovering funds when
victims or financial institutions report BEC-unauthorized and fraudulently induced wire transfers
to law enforcement within 24 hours.

File and source

File

NOTICE_Companion-to-All-COVID-19-Advisories_2020-05-18.pdf

Size

497,553 bytes

SHA-256

d4534ede34f94923e2a6b6379fa8063a3af1cd5c96cb5e04f30ed981449642db

Our copy

NOTICE_Companion-to-All-COVID-19-Advisories_2020-05-18.pdf

Original

www.fincen.gov