An intelligence-led and data-driven approach to tackling the financial side of organized crime will not truly work unless there is collaboration — not just between the banks, but across governments, regulators, auditors, security agencies and banks.
This will require not just data sharing, but improving access to trusted data sources, and supporting and facilitating the adoption of new financial technologies.
The framework for identifying financial crime needs to be transformed to a cost-effective, tech-based model that aligns all stakeholders and enables information to easily flow between both the public and private sectors.
The good news is that this is increasingly the consensus across the globe.
Banking regulators are looking at how financial technology and process innovation can change the way they think about KYC (know-your-customer) protocols and tackling money laundering. They are talking about what they can do as a group to facilitate different ways of working to make the whole regime more effective.
It is in everyone’s interest to shift banks’ focus of financial crime away from compliance towards proactively preventing and disrupting it. This is why, at EY, we are helping banks and regulators use technology, data, and new ways of thinking and working across organizations to create a world where the very worst criminals can no longer use the complexity of the global financial system to hide the proceeds of some of the most horrific crimes imaginable.
With the right mindsets, technologies, and ways of working across organizations and jurisdictions, we believe we can help bankers truly disrupt financial crime and build a world that is safer and more secure for legitimate business and ordinary citizens alike.