Managing ever evolving financial crime threats and meeting associated compliance requirements is operationally demanding and costly for financial institutions. Technology — including AI — has enhanced detection capabilities, reduced false positives and enhanced the productivity of staff supporting case investigations, Know Your Customer (KYC) processes and more. And end-to-end digital onboarding for retail customers has become a reality in many markets. And yet, there are still gaps to close and efficiencies that may be derived from collaboration between financial institutions.

Regulators in many parts of the world have recognized the need for some form of intelligence sharing— particularly for Anti-Money Laundering (AML) operations. These efforts have also generally been encouraged by supranational bodies like the Financial Action Task Force (FATF) and Europol.

The UK led the way with a high level approach to intelligence sharing with the formation of the Joint Money Laundering Intelligence Taskforce (JMLIT) in 2015. The JMLIT forum includes 40+ financial institutions, the Financial Conduct Authority and five law enforcement agencies. It shares information on “new typologies, existing vulnerabilities, and live tactical intelligence”.

As a result of the initial success with this approach in the UK similar organizations have been formed in other countries in the past five years. In most cases the aim is to track _trends _in criminal activity and to adapt detection and compliance approaches. KYC or transaction data is seldom shared at significant volume as a matter of course through these bodies.

The chart below provides an overview of some of these organizations founded in the past five years.

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