AML info-sharing tech and cooperation keys to future


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Cutting-edge tech could protect privacy while sharing key data across banks in fight against financial crime

Tracking illicit transactions poses a constant challenge for financial institutions’ AML Compliance efforts. Financial criminals move laundered money among accounts at multiple institutions. For AML Compliance staff, following the trail can be very difficult.

Information-sharing tools could help a lot, but cross-border cooperation by its nature becomes difficult as privacy laws and standards vary country to country. However, several countries—including the U.S., the U.K., the Netherlands, and Estonia—are working to overcome obstacles to information sharing in order to gain ground in AML Compliance and in preventing the financing of terrorism.

An organization called The Future of Financial Intelligence Sharing “leads independent research into the role of public-private and private-private financial information-sharing partnerships to detect, prevent and disrupt crime.”

The group’s most recent publication describes how institutions are sharing encrypted data and using advanced privacy-guarding technologies in an effort to “detect and disrupt crime.”

Types of initiatives include messaging technologies, development of typologies of economic crime threats, collaborative transaction monitoring, adverse-incident databases, and collaborative intelligence and investigations by collaborating institutions.

In one example, a privacy-enhancing technology facilitates “queries [that] can take place to consortiums of financial institutions, without the details of the query being disclosed in the process and response times are being reduced to automated and instant replies, compared to previous processes that took weeks or months to receive replies.”

The future of this type of sharing and the power of advancing technologies to support it opens new horizons in the fight against financial crime and gaining ground in AML Compliance. Managing the cross-border complexities will be as important as the technologies. Stay tuned…It’s fascinating area for growth in the field.

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