What term means a notification to FinCEN for sharing, valid for one year?

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Multiple Choice

What term means a notification to FinCEN for sharing, valid for one year?

When institutions share customer information under 314(b) of the USA PATRIOT Act, they must file a formal notice with FinCEN indicating that sharing is authorized. This specific notice is called an Effective Notice, and it remains in effect for one year. After that year, the sharing arrangement must be renewed if it’s to continue. The other terms describe different concepts: Due Diligence is about verifying and understanding customers, Joint SARs refer to multiple institutions filing a Suspicious Activity Report together, and Permissible Sharing speaks to whether sharing is allowed in general, not the notice itself.

When institutions share customer information under 314(b) of the USA PATRIOT Act, they must file a formal notice with FinCEN indicating that sharing is authorized. This specific notice is called an Effective Notice, and it remains in effect for one year. After that year, the sharing arrangement must be renewed if it’s to continue. The other terms describe different concepts: Due Diligence is about verifying and understanding customers, Joint SARs refer to multiple institutions filing a Suspicious Activity Report together, and Permissible Sharing speaks to whether sharing is allowed in general, not the notice itself.

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