privacy enhancing technologies

In July 2019, the UK’s Financial Conduct Authority (FCA) held a week-long Global Anti-Money Laundering and Financial Crime TechSprint (FCA TechSprint) event. The FCA TechSprint looked at ways to effectively combat financial crime and money laundering within the financial services industry. On 16 October 2019, the Information Commissioner’s Office (ICO) released a blog (here) that focuses on the lessons learnt from the FCA TechSprint.

Background

The FCA TechSprint brought together teams from all over the world to explore how encryption techniques known as privacy enhancing technologies (PETs) can facilitate data and knowledge sharing among financial institutions, regulators and law enforcement agencies to detect and prevent money laundering and financial crime, while remaining compliant with data protection and privacy laws.

The teams worked towards developing solutions to the following use cases:

  • how can a network of market participants use PETs and data analytics to interrogate financial transactions stored in databases within institutions to identify credible suspicions without compromising data privacy legislation?
  • how can market participants efficiently and effectively codify topologies of crime which can be shared and readily implemented by others in their crime controls?
  • how can a market participant check that the company or individual they are performing due diligence on has not raised flags or concerns within another market participant, and/or verify that the data elements they have for the company or individual match those held by another market participant?
  • how can technology be used to assist in identifying an ultimate beneficiary owner across a network of market participants and a national register?

ICO’s Regulators’ Business Innovation Privacy Hub was present at the FCA TechSprint to offer guidance on the data protection implications of implementing PETs. Continue Reading At odds no more: can regulatory collaboration bring innovation and data privacy closer together?