Enabling increased information sharing in all ways – public to private, public to public, private to private, local to global – is an important factor in improving the ability of all stakeholders to fight financial crime more effectively according to a paper published by the Global Coalition to Fight Financial Crime (GCFFC).
Public private partnerships (PPPs) are a critical enabler in this context and can help create a framework of collaboration that allows financial crime to be tackled more effectively as part of a ‘whole system approach’, the coalition’s Effectiveness Expert Working Group Position Paper says.
The paper concludes that the Financial Action Task Force (FATF) could provide clearer endorsement of the benefits of PPPs within the global anti-money laundering and counter financing of terrorism (AML/CFT) framework. It also suggests that countries with robust AML/CFT regimes could innovate in the fight against financial crime if they are allowed to operate outside the FATF standards.
Recognising PPPs
Formal recognition of the development of PPPs by the FATF would strongly encourage senior political engagement in their development, release associated funding and help to ensure wider engagement from key stakeholders in national AML ecosystems the paper suggests.
It also says increased engagement would help PPPs modernise, for example through increased digitisation, and could help so that they become a central pillar of both public and private sectors’ response to tackling illicit finance.
FATF concerns
While the paper concedes that FATF is extremely important in helping to ensure the implementation of AML standards internationally, it expresses concerns about the need to demonstrate compliance through the mutual evaluation process being the principal focus of political attention. This could limit political engagement and support in the development of innovative approaches it suggests.
In more mature jurisdictions that have already proved an acceptable level of basic AML competence, the FATF could give permission to develop, test and evaluate new AML approaches which had the potential to improve effectiveness, even if by implementing these new approaches, the jurisdiction diverged from the existing FATF standards the paper concludes.
GCFFC profile
The GCFFC’s membership includes law enforcement agencies such as Interpol and Europol; advocacy and professional bodies such as Global Financial Integrity and the Institute of International Finance, whose membership includes nearly 450 member institutions from over 70 countries including leading players in financial services.
Promoting more effective information sharing between public and private entities is one of the coalition’s main objectives. It also aims to raise global awareness of financial crime, identify pressure points in the AML/CFT framework and identify emerging threats and best practice approaches to AML/CFT controls.
The GCFFC’s Effectiveness Expert Working Group Position Paper can be found here.
Categories: Trade Based Financial crimes News
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