GLOBSEC Regional Conference of the FIUs: The Role of Fintech in AML/CFT policies

GLOBSEC, in cooperation with the Financial Intelligence Unit (FIU) of Police Force Presidium organised a two-day regional conference in Bratislava bringing together representatives from FIUs of the V4 – Poland, Slovakia, Czech Republic and Hungary, in addition to representatives from Austria, Slovenia and Ireland. The aim of the conference was to exchange information and opinions on the latest topics as suggested by FIUs themselves. Special guests of the conference included Ms Elzbieta Frankow-Jaskiewicz, Chairperson of MONEYVAL, and liaison officers of HM Revenue & Customs in the UK and Italy’s Guarda di Finanza, as well as representatives of the Slovak FinTech sector.

The lively discussions centred around the role of FinTech in AML/CTF[1] policies from the perspective of the Fintech industry, including the experience of cooperation with law enforcement authorities with FIUs at home and abroad.

The discussion about building strategic analysis within FIUs focused first and foremost on the utility of such analysis. A trend in increasing numbers of suspicious transactions reports being filed is offset by their decreasing quality, the need to undertake strategic analysis is unquestionable. While not all FIUs in the V4 region have supervisory responsibilities, all have regular interaction with them. Therefore, an animated discussion took place on the topic of designated non-financial businesses and professions. Next on the agenda was a discussion on criteria for selecting cases for FIU analysis of incoming XBDs/XBRs (cross border disseminations/cross border reports). Some time was then spent discussing FIU experiences with international sanctions, mainly in connection with the current war in Ukraine. The conference ended with discussions on trade-based money laundering and money laundering cases using crypto vouchers.

Key Takeaways:

Cooperation – mutual cross border cooperation was highlighted time and again as key. Criminals as well as terrorists know no borders and no single FIU has the capacity to ‘go it alone’. Moreover, cooperation with obliged entities, the private sector and namely FinTech as well as domestic law enforcement agencies is crucial.

Exchange of information – while the volume of cases has steadily increased, human capacities are and always will be limited. However, using the most up-to-date systems and automation can help speed processes and enable better results in data analysis and information sharing among domestic stakeholders as well as partner FIUs.

[1]
                    [1] Anti Money Laundering / Countering the Financing of Terrorism