The Financial Action Task Force (FATF) has published a report entitled Information Sharing to Combat Illicit Finance: Global Overview of Public and Private Sector Partnerships and Data Protection Arrangements.
The report highlights the importance of effective information sharing between competent authorities and the private sector in detecting, preventing and disrupting money laundering, terrorist financing and proliferation financing. It considers the role of public-private partnerships as enhanced mechanisms for collaboration, allowing public and private sector participants to exchange relevant knowledge, typologies and, where appropriate, actionable intelligence in support of AML/CFT/CPF objectives.
The FATF notes that, in an increasingly digitalised financial environment, the speed and complexity of illicit finance require stronger collaboration and more effective information-sharing arrangements. The report therefore provides an overview of different public-private, private-private and cross-border information-sharing models, including their governance structures, legal and regulatory considerations, and data protection safeguards.
Subject persons may find the report particularly useful as it provides practical examples from a range of jurisdictions on how PPPs may support improved risk understanding, enhanced detection of suspicious activity, better-quality reporting and more effective disruption of criminal networks. At the same time, the examples included in the report should be considered within the specific legal, supervisory and operational context of each jurisdiction, including applicable data protection and confidentiality requirements.
The publication may also provide useful insights in the context of the possible future set-up of partnerships under Article 75 of the EU Anti-Money Laundering Regulation. In this regard, the report is particularly relevant not only from an AML/CFT effectiveness perspective, but also in view of the need to ensure that any such partnerships are supported by appropriate governance arrangements, clear parameters for the sharing and use of information, and data protection safeguards. This also underlines the importance of commencing work on data protection guidance applicable to such partnerships, to provide clarity to participating public and private sector stakeholders.
The FIAU remains a firm believer in the value of public-private partnerships as an important means of strengthening Malta’s AML/CFT framework and enhancing collective efforts to combat financial crime. Over the years, the FIAU has set up a variety of active PPP initiatives. More information on these is available on the FIAU’s Public-Private Partnerships webpage. These include various engagement, feedback and intelligence-led initiatives, with the FIAU having also established a PPP focused on money laundering related to human trafficking and modern slavery.
Subject persons are encouraged to read the FATF report and consider its relevance to their own AML/CFT frameworks, particularly in relation to information-sharing practices, engagement with competent authorities, risk mitigation measures and the role of data protection considerations in collaborative arrangements.
For further information, subject persons and other interested parties may access the publication through the FATF’s website or via the FIAU’s website under the “FATF” section.