Information Sharing in the Private Sector

Of relevance to: All firms, particularly those within groups of companies

The Financial Action Task Force (FATF) have issued additional guidance on Private Sector Information Sharing which aims to improve effective information sharing, one of the cornerstones of the FATF Recommendations.

Information sharing is crucial for combatting money laundering, terrorist financing and financing of proliferation, particularly as multinational money laundering schemes don’t respect national boundaries.

It’s important that information concerning financial activity with possible links to crime and terrorism is shared in a timely and effective manner between and with both the public and the private sectors.

Firms should therefore not be unduly prevented from sharing information, but a number of legal constraints and operational challenges may prevent effective exchange of information between different firms belonging to the same group. For example, data protection and privacy laws such as the forthcoming General Data Protection Regulation give individuals the right to privacy and to protect their personal data.

The UK’s Joint Money Laundering Intelligence Taskforce was established in February 2015 and is now a permanent part of the UK’s response to money laundering and terrorist financing, bringing together the government, the British Bankers Association, law enforcement and more than 40 major UK and international banks, providing an environment for the financial sector and government to exchange and analyse intelligence.

FATF is an inter-governmental body established in 1989 with the objectives to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.