Communications of the ACM
Banks Start Using Information-Sharing Tools to Detect Financial Crime
The Transactie Monitoring Nederland platform allows participating banks such as ABN AMRO Bank NV to pool anonymized transactional data.
Credit: Paul Vreeker/Reuters
Researchers participating in the Future of Financial Intelligence Sharing (FFIS) project, supported by the U.K.'s Royal United Services Institute think tank, have identified around 15 information-sharing initiatives worldwide that aim to help financial institutions and service providers better detect fraud and money laundering.
Such information-sharing platforms have been developed in the U.S., the U.K., the Netherlands, and Estonia, among other countries.
The Netherlands' Transactie Monitoring Nederland, for instance, enables participating banks to pool encrypted transactional data about customers and generate alerts when unusual transaction patterns could signal money laundering or terrorist financing.
However, the widespread adoption of information-sharing platforms is hindered by data privacy concerns and government regulations.
Said FFIS's Nick Maxwell, "Technology is not the issue. It's really about whether the country has a clear policy environment to support sharing, which is rare."
From The Wall Street Journal
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