Fighting Financial Crime & Protecting Data Privacy Through Responsible Data Sharing: A Path Forward – Full Paper

A new Data Protection Experts Working Group commissioned by the GCFFC have today published a Paper “Fighting Financial Crime & Protecting Data Privacy Through Responsible Data Sharing: A Path Forward”. The paper sets out a multi-disciplinary explanation of the intersection between fighting financial crime (“FFC”) and data protection and privacy (“DPP”) along with 4 important recommendations for the adoption of international regulations, standards and measures to fight financial crime while still providing protection for individual’s data privacy. Achieving a balance between FFC and DPP is not a zero sum game, with only winners and losers. Where differences arise as they will, resolution will only come from a better understanding of why and how activities are undertaken, and why and how these can be carried out consistent with the aims of FFC as well as safeguarding rights for DPP. 

This timely paper provides:

A) An introduction and explanations of key factors affecting the complexity of marrying FFC and DPP compliance, including that

i) the interests of individuals must be balanced against the need for FFC measures,

ii) the diverse range of stakeholders in the extensive ecosystem of FFC players and the complex web of FFC and DPP requirements that impact them, &

iii) the benefits and challenges associated with AML/CTF information sharing under the key data sharing regimes used for FFC compliance, as well as

B) Recommendations including as to how key stakeholders might come together to support the optimal operationalisation of DPP in FFC and

C) Conclusions and next steps for the DPEWG.

”Co Chair of the GCFFC Data Protection Experts Working Group, Vivienne Artz commented that, “Fighting Financial Crime & Protecting Data Privacy through Responsible Data Sharing: A Path Forward” is a ground breaking report which explores and explains how data protection & privacy (“DPP”) and fighting financial crime (“FFC”) responsibilities can find practical ways forward, in the borderless reality of financial transactions, where data DPP is too often see as a barrier to effective FFC outcomes.  The report makes recommendations for a solutions and collaborative way forward which is ever more important as the human, security and financial toll of FFC ineffective outcomes continues to grow.  The report reflects a terrific collaboration between a wide range of international experts who volunteered their time and insights over many months – thank you so much to each of you and to your firms.”

Co Chair of the GCFFC Data Protection Experts Working Group, Michelle Frasher commented that, “Data protection and financial crime compliance share common objectives, making alignment and understanding between these domains vital for improving private sector effectiveness while protecting individual rights. The paper highlights areas for improvement and, most importantly, emphasises the need for collaboration at policy, technical, and operational levels. A holistic approach involving all stakeholders is essential to build a cohesive legal, regulatory, and operational framework that supports both data protection and AML goals-not only for data sharing but for the overall effectiveness of the AML/CFT regime. I am grateful to the members for their collaboration and valuable insights on this long-overdue discussion.”

Thanks go to the contributors to the paper, in particular, the GCFFC would like to thank Co Chairs Vivienne Artz OBE FCSI (Hon) CMgr CCMI AIGP and Dr Michelle Frasher PhD, CAMS as well as the following members of the DPEWG for their immeasurable contributions to this paper: Ronen Cohen, Gem Conn, Sadie Falconer-Bowen, Daniel Forbes, Georgina Kon, Janet Lane, Beatrice Marinoiu and Sujit Raman. Also with thanks to a number of GCFFC members for their invaluable contributions: LSEG & TRM Labs and non Members: Duality, Dow Jones, Alix Partners LLP, LexisNexis Risk Solutions and Linklaters LLP.The 4 Main Recommendations from the GCFFC DPEWG – see Chart below: 

For more details and or opportunities to contribute to the future work of the DPEWG, please contact the GCFFC secretariat at Secretariat@GCFFC.org