On 29 June 2017, the Financial Action Task Force (FATF) published for consultation draft guidance for private sector information sharing.
The FATF explains that effective information sharing is one of the cornerstones of a well-functioning anti-money laundering (AML) and counter-terrorist financing (CTF) framework. The constructive and timely exchange of information is a key requirement of the FATF standards, and cuts across a number of the FATF recommendations and immediate outcomes. As a result, it is developing the guidance to promote information sharing between financial institutions that are part of the same financial group, as well as between financial institutions not within the same group.
The guidance sets out the obstacles to information sharing, including legal constraints and operational challenges. It contains examples of how countries address these obstacles, including how national data protection and AML authorities work together to meet their respective objectives. It sets out practices adopted by countries to promote group-wide information sharing, and information sharing between financial institutions that are not part of the same group. The guidance also includes examples of established mechanisms and processes to ensure guidance and feedback for the private sector, which helps facilitate better information sharing among all stakeholders.
The guidance applies to countries and their AML and CTF authorities, practitioners in the private sector, including financial institutions that have group-wide AML and CTF obligations to fulfil, and national and supra-national data protection and privacy authorities.
The aim of the guidance is to:
- Identify key challenges that inhibit the sharing of information group-wide and between financial institutions that are not part of the same group.
- Articulate the FATF standards on information sharing.
- Highlight country examples of collaboration between data protection and privacy authorities, and AML and CTF authorities to serve mutually inclusive objectives.
- Provide country examples to facilitate both the sharing of information within groups, and between financial institutions that are not part of the same group, and constructive engagement between the public and private sectors.
- Support the effective implementation of the AML and CTF regime through the sharing of information, in both the national and international context.
The final version of the guidance will be non-binding, and will not overrule the purview of national authorities.
The FATF advises that the guidance should be read in conjunction with a number of materials, including the FATF recommendations, in particular, recommendations 9, 18, 20 and 21, their interpretative notes and the FATF glossary.
Before finalising the guidance, the FATF has decided to consult with private sector stakeholders. Comments can be made on the draft guidance until 31 July 2017. As the FATF has not yet approved the draft guidance at this stage, it advises that the guidance will be subject to further revisions and amendments.
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