I've been writing for a while now about how public-private partnerships can do much more than either sector on their own to meet public-policy goals. One of our key goals is to maintain the integrity of our financial system - not just within a country's borders, but across-border as well.
Historically, undermanned and underfunded public enforcement agencies have been deluged with self-reported suspicious events by regulated banks and other entities. Basically, this system, where banks naturally self-report nearly anything that MIGHT be suspicious, has resulted in far more than the public regulatory agencies can possibly actually review. The result is that less than 1% of total money in the global system has been seized - and everyone pretty much agrees there's likely lots more fraud and laundering going on than that total implies.
This article summarizes the promising experiments going on, particularly in the UK and Australia, where public and private entities are forming information-sharing bodies, and using advanced analytics, to work together to find potential fraud, and then investigate it together. This is another important area of public policy that the public-private partnership model can likely do much more of, than we could possibly do separately.
“There is a question about how effective we are in the West at combating financial crime,” said Satnam Lehal, head of financial crime compliance at Danske Bank, which came under a spotlight when a massive money-laundering operation was uncovered at its tiny Estonian branch. “Public-private partnerships are part of the answer to that.”