Taking risk information sharing to the next level

Deloitte expert explained the values of integrating blockchain and FCC at the INCLUSION·Fintech Conference

As the Intellectual Partner of the 2020 INCLUSION · Fintech Conference ("the Conference"), Deloitte is honored to share our thought leaderships with the fintech community and explore global financial technology trends with keen insights.

At the Intelligent Risk Management Technology & SMART AML Forum on Day 2 of the Conference, Vice President of Ant Group Mr Jianwei Tu and Deloitte China Forensic Partner, AML expert Mr Chris Cheung announced the official launch of Deloitte's latest thought leadership jointly published with the Conference organizer, namely Taking risk information sharing to the next level – integrating blockchain and financial crime compliance. This whitepaper explores the integration of blockchain technology with Financial Crime Compliance ("FCC"). It sets out the key advantages and challenges that come with leveraging the blockchain technology in the FCC areas.

 Vice President of Ant Group Mr Jianwei Tu (Left), Deloitte China Forensic Partner, AML expert Mr Chris Cheung (Right)

Deloitte China forensic partner, AML expert Chris Cheung said, "Financial institutions are mobilizing their resources towards agile and scalable solutions to ensure standardization, security, and targeted strategies. The goal is that each FCC process is devised to meet regulatory expectation, and operational efforts are streamlined on a risk-based approach with automated assistance.

While information sharing is essential for the effective functioning of AML/CFT programs, data privacy and secrecy laws sometimes limit the ability of law enforcement agencies to identify, capture, and build cases against criminals. An information sharing mechanism that is compliant with privacy and secrecy regulations will enable law enforcement agencies in different jurisdictions to join forces in tackling financial crime.

We believe that implementing the alliance chain, a type of permissioned blockchain, would advantages to inter-agency money laundering risk information sharing. Effective information sharing is also a key aspect of the recommendations set out by the Financial Action Task Force ("FATF"), a major AML standard setting body and international organization, as it pointed out effective information sharing is a key factor in combating financial crime as it improves transparency and protects the integrity of financial systems."

Did you find this useful?