Stocktake on data pooling collaborative analytics and data protection

Technological advances in recent years allow financial institutions to analyse large amounts of structured and unstructured data more efficiently and identify patterns and trends more effectively. This report examines commercially available or emerging technologies that facilitate advanced AML/CFT analytics within regulated entities. It also looks at technologies that allow collaborative analytics between financial institutions, while respecting national and international data privacy and protection legal frameworks.

This report acknowledges that AML/CFT and data privacy and protection are both significant public interests that serve important objectives. These objectives are neither in opposition nor inherently mutually exclusive. Data protection principles and rules through international and domestic legal instruments aim to protect human rights and fundamental freedoms, notably the right to privacy. It also notes that it is essential that legal regimes facilitate both objectives, in order to prevent money laundering, terrorist financing, proliferation financing, and other financial crimes, in a way that respects individuals’ fundamental rights to privacy and data protection.