March 11, 2002 News Archive

Treasury Announces USA PATRIOT Act Regulations to Improve Information Sharing

The Department of the Treasury announced regulations addressing two important information sharing provisions implementing the anti-money laundering and anti-terrorism provisions of the USA PATRIOT Act. A regulation is being proposed to use the existing communication resources of Financial Crimes Enforcement Network (FinCEN) to link federal law enforcement and financial institutions to share information quickly without compromising pending investigations. Written comments on the proposed rulemaking (PDF, 137KB) are due at FinCEN by April 3, 2002 and should be submitted to: Special Information Sharing--Section 314 Comments, PO Box 1618, Vienna, VA 22183-1618. Comments may also be submitted by electronic mail to: regcomments@fincen.treas.gov with the caption in the body of the text, "Attention: Proposed Rule-Special Information Sharing-Section 314."

An interim rule (PDF, 226KB) would allow information sharing among financial institutions, upon providing notice to Treasury. Institutions would also be required to file a yearly certification to FinCEN prior to engaging in information sharing under this provision.

Vice Chairman Ferguson Remarks on Disaster Recovery and Business Continuity
Vice Chairman Roger W. Ferguson, Jr., presented a supervisory perspective on disaster recovery and business continuity before the Institute of International Bankers in Washington, D.C. In his speech, Vice Chairman Ferguson reviewed some of the key lessons that emerged from the 9/11 events. He highlighted the interdependence of financial system participants and how an individual institution's contingency planning decisions may affect not only the safety and soundness of that institution but also of other institutions and the very functioning of the financial markets. He also stressed the need for cooperation and the expectation that financial institutions conduct an honest appraisal of their vulnerabilities and to take the necessary actions to remedy any significant operational weaknesses and deficiencies.

Governor Bies Remarks on Strengthening the Financial System through Sound Accounting and Disclosure
Fed Governor Susan Schmidt Bies remarked on sound accounting and disclosure at the Symposium on Building the Financial System of the 21st Century: An Agenda for Europe and the United States, in Ruschlikon, Switzerland. In her speech, Governor Bies addressed the role of disclosure in describing the risk exposures of financial organizations. According to Governor Bies, company managers must ensure that public disclosures clearly identify all significant risk exposures, whether on or off the balance sheet, and their impact on the firm's financial condition and performance, cash flow and earnings potential, and capital adequacy. Disclosures must also include how risks are being managed and the underlying basis for values and other estimates included in financial reports.