A recent meeting held by the Financial Action Task Force (FATF) at the United Nations Office on Drugs and Crime (UNODC) in Vienna

A recent meeting held by the Financial Action Task Force (FATF) at the United Nations Office on Drugs and Crime (UNODC) in Vienna highlighted the importance of collaboration between private and public sector entities to combat money laundering and enhance asset recovery efforts.

During the event, attended by over 250 representatives from financial bodies, the public sector, and academia, discussions were held under the Chatham House Rule, focusing on the significance of improving cooperation between these sectors.

One attendee highlighted the example of COSMIC, a digital platform launched by the Monetary Authority of Singapore in partnership with major commercial banks in the country, including Citibank and HSBC. COSMIC facilitates secure information sharing among financial institutions to identify customers exhibiting potential financial crime concerns.

The discussions emphasized how such initiatives can lead to more effective outcomes in asset recovery and combating financial crimes. Tommas Kaplan, Chief Compliance Officer at von Poll Immobilien GmbH, noted the importance of public-private collaboration in asset recovery, particularly in swiftly prioritizing urgent Suspicious Transaction Reports (STRs).

According to the FATF, there was consensus at the summit regarding the critical role played by the private sector and civil society in addressing financial risks more effectively. Thematic discussions centered on issues such as payment transparency, asset recovery, beneficial ownership, and risk-based approaches for non-profit organizations.

The conference also highlighted examples of successful collaborations between public and private sectors, including efforts to combat illegal wildlife trade financial flows.

Despite some past resistance to public-private initiatives like COSMIC, attendees acknowledged the benefits of tighter collaboration. Challenges such as data privacy concerns and the risk of de-risking transactions were recognized, requiring mature decision-making.

Kaplan emphasized the importance of public-private collaboration in detecting broader networks involved in financial crimes, stressing that stopping single transactions is crucial but detecting the bigger picture is even more effective.

Overall, the discussions underscored the importance of ongoing cooperation between public and private sectors to address evolving financial risks effectively.

By fLEXI tEAM