The Payments Association, which celebrates innovation and collaboration across the payments industry, has released a new whitepaper examining the current arrangements for sharing data to prevent economic crime in the UK, “citing collaboration between regulated entities and between public and private sector is key to progress on data sharing to prevent economic crime.”
The research report also “presents the changes that may be introduced by the relevant provisions of the Economic Crime and Corporate Transparency Bill, now making its way through Parliament.”
Global estimates “suggest $2 trillion is laundered annually and fraud is now at epidemic levels. Illicit finance has become one of the world’s most prevalent businesses – ‘economic crime is, in short, the crime of our times, and is increasingly being recognized as a threat to the UK’s national security’.”
With the government having a firm spotlight “on economic crime and fraud, the whitepaper, entitled ‘Data Sharing to prevent Economic Crime: Why you can now share data with confidence’, sets out clear recommendations about ways in which data sharing in the UK could be improved to prevent economic crime while taking account of existing and forthcoming privacy legislation,” including:
- Collaboration both between regulated entities and between public and private sector is key to progress on data sharing to prevent economic crime.
- Confidence in their ability to share data without risk of prosecution is vital for financial institutions to be able to combat economic crime.
The position of data providers to financial institutions, “not just regulated entities, must be covered in both legislation and guidance as many financial institutions want to be able to use the latest technology and data and do not have the technical resources or are too small to do this for themselves.”
The whitepaper also “surveyed the membership of The Payments Association and identified several key issues which prevent the effective and privacy-conscious sharing of data to prevent economic crime: balancing data privacy and the need to share data, siloed data within firms, inconsistent formatting of data, criminal exploitation of technology, the cross-border nature of economic crime and the multiple data-handing laws across borders.”
Most commentators “agree that the very limited way that the financial industry is sharing information today is outdated and must be vastly improved if the UK wants to stop the rising tide of economic crime.”
A robust data-driven (preferably global) solution is, “therefore, seen as critical.”
The whitepaper, In collaboration with Form3, “finds the nation is now at now at a crossroads where many forces are aligning to open up the opportunity for more effective data sharing both within the public sector, within the private sector and between each sector.”
Jane Jee, Lead of Project Financial Crime at The Payments Association, said:
“The UK lacks the infrastructure to effectively defeat fraud and economic crime. Criminals operate without regard to our laws and our borders. Therefore, data sharing is a crucial part of any organisation’s armoury to stop them. This report is a must read for all financial institutions concerned about the rising tide of crime.”
Michael Mueller, Chief Executive Officer at Form3 – Benefactor for Project Financial Crime at The Payments Association, added:
“The effective use of data sharing within the payment ecosystem can deliver a seismic shift in collaboratively combatting economic crime. This whitepaper reflects the current barriers to data sharing that financial institutions in the UK face as well as the opportunities that can be realised when these can be overcome.”
Tony Craddock, Director General of The Payments Association, commented:
“We are very excited to share the results of this report. Every one of us has our payments data shared with agencies in the UK and sometimes elsewhere for the purpose of complying with anti-money laundering legislation and fraud protection, so it is vitally important that individuals, businesses and governments all understands what is possible, what doesn’t work and what is necessary to keep everyone involved in the payment landscape secure.”
To learn more, you access the report: ‘Data Sharing to prevent Economic Crime: Why you can now share data with confidence’, here.