AML/CFT USE BY FINANCIAL AUTHORITIES OF DATA COLLECTION OR ADVANCED DATA ANALYTICS TOOLS ENABLED BY INNOVATIVE TECHNOLOGIES

On 29th August, the Bank for International Settlement published a paper saying that “Suptech”, or the use by financial authorities of data collection or advanced data analytics tools enabled by innovative technologies, seems more advanced in the field of AML/CFT.  Authorities need suptech-enabled advanced data analytics tools to analyse large volumes of information at their disposal.  However, it says, the use of these innovative technologies gives rise to a number of challenges, including computational capacity constraints and data privacy and confidentiality issues.  The paper aims to explore the various data analytics tools used by authorities tasked with AML/CFT responsibilities, as well as their practical experiences in using such tools.  It concludes that efficiency gains seem to be the number one benefit of advanced data analytics tools, which could help capacity-constrained AML/CFT authorities.  It also says that there is scope for information-sharing among AML/CFT authorities on the data analytics tools they are developing or using in order to promote peer learning.  The paper also says that while risks have international reach, and hence development of data analytics tools that are international in scope should be considered, the tools discussed in the paper are all national in scope.  Money laundering, however, is an international issue, and criminal organisations tend to exploit loopholes anywhere in the world.  Therefore, a strong argument could be made for international co-operation and collaboration in terms of developing data analytics tools with an international coverage

https://www.bis.org/fsi/publ/insights18.pdf

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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