Information Sharing

information sharing aml

1. Information sharing prepares to move beyond big banks

One of the most promising AML compliance trends for 2019, is the prospect of increased information sharing between financial institutions. Considered a cornerstone of an effective AML/CFT framework, information sharing is a key component of the recommendations set out by the Financial Action Task Force (FATF). Early initiatives bringing together the public and private sectors such as the FinCEN Exchange in the US and the Joint Money Laundering Intelligence Taskforce in the UK have all shown that bridging the gap between different players makes a big difference.

While information sharing has seen success among regulators and banks, in 2019 we should start to see it become more prevalent amongst smaller financial institutions. To make sure that this trend is a success, however, a culture of collaboration needs to be cultivated, and supported by timely guidance from regulators. Various obstacles stand in the way of information sharing, not least the inconsistency of territorial regulation and privacy legislation, all of which will need to be resolved for this trend to really get going.

Willem Wellinghoff, MLRO at Shieldpay said that “Information sharing is of crucial importance to combat financial crime effectively. We have traditionally seen challenges in being able to share and obtain information with financial institutions due to the fear of tipping off and privacy-related issues,” looking to the future he continued “FinTech and emerging technologies will play a vital role in shaping the sharing of information.”

Tip: In 2019 different industry groups are likely to begin thinking about how they could share more information on financial crime. Help shape the conversation and future initiatives by getting involved in early discussions and work with regulators on sustainable ways of exchanging information.


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