Without all necessary information, it is impossible to see the forest for the trees, especially when it comes to financial crime.
We can define "necessary" as both the information in front of our computer screens as well as external information that fills in the gaps. That external information includes all of the normal due diligence, monitoring, and investigative information, as well as supplementary information from other institutions, agencies and governments.
Access to comprehensive information helps us paint a better financial crimes picture, a la Bob Ross, and turn information into actionable intelligence that may enable:
- better suspicious activity reporting
- robust customer profiles
- transaction reviews in full context
- reducing redundant compliance activities and costs
- addressing more complicated financial crime methodologies
The Financial Action Task Force's (FATF) recommendations for information sharing provide a solid, necessary framework as a starting point to mitigate data privacy concerns while better fighting financial crime with more happy little information trees.
Effectively sharing information concerning possible cases of abuse of the financial system with relevant authorities is one of the cornerstones of an effective AML/CFT system. The FATF’s requirements on information sharing are set out in 25 of the FATF’s 40 Recommendations and impact 7 immediate outcomes of the FATF Methodology for assessing effectiveness. The FATF has grouped the relevant sections on information sharing from the existing FATF Recommendations into one compilation. The compilation will help to clarify what the FATF Recommendations require in terms of the types of information that should be shared, including the types of information that competent authorities are required to make publicly available the circumstances in which such information should be shared, and the protections and safeguards which should apply to information sharing and exchange.