By Elizabeth Hearst
Significant growth has been forecast in the “standards framework for underlying Privacy Enhancing Technologies (PET)” in a report by The Future of Financial Intelligence Sharing (FFIS), published on the 29th June.
According to FFIS, the effectiveness and efficiency of these practices in conjunction with a greater expectation to use privacy preserving analysis (PPA), will lead to increased growth in this sector within the next decade.
This report warns that although hurdles do remain, in relation to data quality and interoperability at a technical level, and specifically regarding the retail banking sector, new wider open banking reforms may enhance interoperability capabilities who can support AML and PPA processes.
Similarly, the report addresses the need for clarity regarding specific information sharing results in support of the pursuit of financial crime detection and what contributing information they wish to remain undisclosed or protected in the process.
FFIS in conjunction with a research partnership between RUSI Centre for the Prevention of Financial Crime and Security and NJM research have published this study which aims to engage in the desired outcomes in policy framework tackling financial crime, the legal implications of the use of PETs, ethical, policy and governance considerations and potential risks and practical technical conditions relevant to applying PETs.
This publication gives an overview of concepts and recent technical developments relevant to privacy preserving analytics, in conjunction with the publication of eight case studies and their use of PPA to tackle financial crime.
The case studies used in this report highlight three years of research and activity in more than 20 countries, with the aim of exploring more traditional information sharing challenges within the context of AML and financial objectives. The eight case studies published explore the current innovation, pilots and projects of PPA relating to AML in financial institutions.
Since 2017, FFIS have conducted research exploring the value of public – private financial information sharing partnership and the impact in supporting financial intelligence , risk management and criminal justice outcomes around the world.
This publication, in conjunction with additional reporting of current financial institutions, case studies and feedback will be published in 2021.