EBF Response to Public Consultation on Guidance on the Rules Applicable to the Use of Public-Private Partnerships in The Framework of Preventing and Fighting Money Laundering and Terrorist Financing
Brussels, 10 January 2022 – The EBF has responded to the Commission consultation on guidance on rules for Public-Private Partnerships in the AML/CFT domain.
The EBF stresses that information sharing in the context of fighting financial crime is critical in ensuring the effectiveness of the AML/CFT rules. Weaknesses in information sharing between obliged entities, financial intelligence units and law enforcement authorities may inadvertently facilitate the activities of criminals who operate nationally or across borders.
At present, obliged entities send large numbers of SARs to FIUs with no or insufficient quantitative feedback. This situation does not allow obliged entities to focus on the most relevant predicate offenses and leads to an increased number of false positives. Often finding the relevant information for law enforcement authorities may feel like finding a needle in a haystack. If an intelligence-led approach were applied in the AML/CFT framework, obliged entities could receive information on current trends and typologies, as well as operational data which would allow them to focus their efforts on priorities as defined by law enforcement authorities. As a result, obliged entities would be able to send back more actionable data and do it in a smarter and aligned with data minimisation requirements way, reporting information when truly necessary.
The complex nature of money laundering and terrorism financing, often involving cross-border flows of funds and the involvement of many layers of entities, makes it challenging to detect such crimes when the data available to do so is mainly limited to a regulated entity’s own customer base and available open-source intelligence. Being able to enrich this view with information from other private sector entities and competent authorities enhances the likelihood of effective detection for all parties involved in a public-private partnership. It also allows both obliged entities and public authorities to form a holistic overall view of the current trends.
For more information:
Roger Kaiser, Senior Policy Adviser – Fiscal & Anti-Money Laundering, R.Kaiser@ebf.eu
Eduard Hovsepyan, Policy Adviser – Anti-Money Laundering, firstname.lastname@example.org
About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.