But the system is largely ineffective, financial crime experts say, because it rarely provides useful real-time feedback—a reality that is giving way to a more collaborative approach. Today, nearly 20 countries have created information-sharing partnerships, according to the Future of Financial Intelligence Sharing program, which carried out the survey. “There is a question about how effective we are in the West at combating financial crime,” said Satnam Lehal, head of financial crime compliance at Danske Bank, which came under a spotlight when a massive money-laundering operation was uncovered at its tiny Estonian branch. While financial crime is often transnational, most information-sharing partnerships are circumscribed by national borders. In other cases, legislation may be needed to give banks a safe harbor to share financial intelligence.

Source: Wall Street Journal August 18, 2020 09:32 UTC