Davis Polk AML/CFT head Dan Stipano was quoted in American Banker discussing the safe harbor provision in section 314(b) of the Patriot Act, which allows financial institutions to share information about customers and transactions they suspect involve terrorism or money laundering. 

The article noted that the new fact sheet issued by federal officials on the information sharing program includes “fraud,” which did not appear in the original rule. 

Dan said, “A court could still decide the safe harbor covers only money laundering and terrorist financing.”

He also suggested that the program’s legal footing has not shifted.

“Nothing has changed,” Dan said. “To my knowledge, there are no active challenges to the 314(b) safe harbor.”

“Anything short of a change in the statute or the implementing regulation is, by definition, interpretation, and it is always possible that a court could disagree if there was a challenge,” he explained, adding that should a court disagree, a bank sued after relying on the guidance “would not be able to dispose of the case on a motion to dismiss and would have to defend on the merits.”

In other words, the article noted, the bank could not get such a lawsuit thrown out early. It would have to fight it through discovery.

Fortunately for banks looking to avoid liability for sharing fraud information through 314(b), a challenge “remains highly unlikely,” he said. “Should such a challenge occur, it is possible that a court could find that the scope of the safe harbor is limited to money laundering and terrorist financing.”

“9/11 inspired counterterrorism. Now we have counter-fraud.,” American Banker (September 11, 2026) (subscription required)

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