Bridging the gap: Europe vs America AML / CTF and data privacy law

SWST 2016-09-29T10:15:00.000Z

Michelle Frasher
2014 Fulbright-Schuman Scholar
Research Fellow

Finance just doesn’t run on data, it is data. And in the digital age, governments want access to financial data because it can illuminate behavioral patterns and yield actionable information to map the illicit economy and terrorist networks. Where state demands for financial data have grown, data privacy law has also become more assertive. The EU’s 4th Anti-Money Laundering Directive (4AMLD) requires financial institutions to apply the General Data Protection Regulation (GDPR) in their AML/CTF programs. Finance must now reconcile two often conflictual legal regimes; AML/CTF laws that seek to protect the financial system from fraud, crime, and political violence; and data privacy laws that seek to protect an individual's identity and choices from government and private abuse.

Multinationals ask how they can comply with AML/CTF and data privacy laws across jurisdictions without incurring legal, reputational, and regulatory risk. This talk addresses privacy’s role in automated and semi-automated data processing, and the challenges involved in Enterprise-wide data sharing, while offering a roadmap for solutions. The GDPR actually points the way forward, but the private sector must act quickly to take advantage of this newly emerging regulatory environment.