FATF Guidance – Privat Sector Information Sharing

FATF Guidance – Privat Sector Information Sharing

Money laundering, terrorist financing and other forms of financial crime do not stop at national borders but can have links to several countries and financial institutions.  To put a stop to it, it is crucial that information concerning financial activity with possible links to crime and terrorism is shared in a timely and effective manner between and with both public and private sector.  The importance of such constructive and timely exchange of information is reflected across a number of FATF Recommendations and Immediate Outcomes.  

Information sharing can allow financial institutions, supervisory and law authorities to make better use of available resources and exploit new technologies and business models to develop innovative techniques to tackle money laundering and terrorist financing.

However, a number of legal constraints and operational challenges can prevent effective exchange of information between different financial institutions belonging to the same group as well as information sharing between financial institutions that are not part of the same group.   This guidance sets out these obstacles and articulates the requirements of the FATF Recommendations in this context.  The guidance was developed with considerable input from the private sector, including a public consultation on the draft guidance.

The finalised guidance aims to improve effective information sharing, one of the cornerstones of the FATF Recommendations.  It contains a number of country examples, including examples of collaboration with authorities responsible for data protection and privacy.

A continuous dialogue between private and public sectors, will improve the quality of the information shared and its usefulness to authorities charged with investigating financial crime.

More on:

• • FATF Guidance on Correspondent Banking Services (October 2016)
  • Consolidated FATF Standards on Information-sharing (June 2016)
  • BCBS Guidelines on Sound management of risks related to money laundering and financing of terrorism (February 2016) [will open in a new window]
  • FATF Guidance for a risk-based approach for the banking sector (October 2014)