FATF Issued a New Report on Data Protection, Technology, and Private Sector Information Sharing
In a recent report, the Financial Action Task Force (FATF) explained how financial institutions (FIs) can share information between companies in a responsible manner.
The report also covers how new technology affects data protection and what the private sector can do to support information sharing. The recommendations come at a time when banks are struggling to keep up with changing regulations and customer demands and when new technologies are making it easier for criminals to launder money.
The FATF report found that private sector information-sharing measures can be done in a way that follows data protection and privacy rules. The report also said that the FATF aims to reduce illicit finance through data analytics and partnerships with the private sector.
This report will serve as an important resource for countries and private sector entities seeking to understand better how they can protect themselves against rapidly evolving cyber threats while also sharing information responsibly to combat these threats.
The reports provide case studies of how different FATF members have increased information sharing while still complying with their domestic data protection and privacy rules. Their experiences show that private sector information sharing measures can be successful while still complying with DPP rules and obligations, but only if certain conditions are met.
Some of the FATF members who shared their experiences include Australia, Canada, the European Union, and the United Kingdom. These case studies show that it is possible to share information while still complying with data protection and privacy rules. However, the report also notes that some conditions must be met for these measures to be successful.
Recommendations for responsible collaboration
FATF recommends that FIs take the following measures when sharing information to detect or prevent money laundering or terrorist financing (ML/TF):
Comply with data protection and privacy rules, including those that relate to cross-border transfers of personal data.
You should do a Data Protection Impact Assessment to help figure out if you are obeying the law and to identify any risks.
The company should ensure that it complies with human rights laws which can be done by doing a Human Rights Impact Assessment. This will help to make sure that your company is respecting the right to privacy of all individuals.
Ensure that information is shared on a need-to-know basis and only with parties with a legitimate interest in receiving it.
Take steps to protect the confidentiality of information, including through the use of encryption, and cooperate with supervisory authorities as appropriate.
The FATF's recommendations come as Swiss banks struggle to keep up with changing regulations and customer demands. In particular, new technologies are making it easier for criminals to launder money.
Swiss banks are already taking steps to implement these recommendations. . By doing so, they hope to make it easier for banks to comply with changing regulations and to protect their customers from financial crime better.
In response to the FATF's recommendations, the Swiss government has said that it is committed to ensuring that data protection rules are followed when information is shared. It has also set up a working group to look into the issue.
The new report is a welcome development for Swiss companies, which have been struggling to keep up with changing regulations. It is hoped that the case studies will help them to find ways to share information while still complying with data protection rules.