Commission updates financial crime handbook to support technology use
- Commission publishes updated Handbook on Countering Financial Crime following consultation feedback
- Changes part of Digital Finance Initiative aimed at supporting technology use in compliance
- Updates intended to remove uncertainty and encourage innovation in anti-financial crime controls
- Revised Handbook provides clarity on electronic verification systems and digital signatures
- Further feedback on Digital Finance Initiative to be published in due course
The GFSC has published a feedback paper and updated sections of its Handbook on Countering Financial Crime, outlining how it has responded to consultation feedback on proposed changes to support the use of technology in combating financial crime.
The changes form part of the Commission's Digital Finance Initiative, following a consultation on Supporting Growth with Digital Finance which closed in March. Respondents to the consultation agreed with the proposed approach and provided suggestions on how greater clarity could be given around the appropriate use of technology within compliance frameworks.
The updates are not driven by changes in international standards or in response to recommendations from the MONEYVAL evaluation report. Instead, they reflect the Commission's intention to help firms make confident, responsible use of technology to enhance the effectiveness and efficiency of their anti-financial crime controls.
The amendments are intended to remove uncertainty and to encourage innovation and investment in appropriate solutions which have the potential to enhance both efficiency and outcomes.
Technology already plays an important role in areas such as client onboarding, monitoring and record-keeping. The revised Handbook provides additional clarity on how widely used tools such as electronic verification systems and digital signatures can be used.
This feedback paper represents the first phase of the Commission's response to its consultation on Supporting Growth with Digital Finance. Further feedback on other aspects of the Digital Finance Initiative will be published in due course.
Q&A
Q: What has the Commission published today?
A: The Commission has published a feedback paper and updated sections of the Handbook on Countering Financial Crime (AML/CFT/CPF), setting out how it has responded to consultation feedback on proposed changes to support the use of technology to combat financial crime.
Q: Are these updates driven by changes in international standards?
A: No, these updates are not driven by changes in international standards or in response to recommendations from the MONEYVAL evaluation report. They reflect the Commission's intention to help firms make confident, responsible use of technology to enhance their anti-financial crime controls.
Q: What areas does technology currently play a role in?
A: Technology already plays an important role in areas such as client onboarding, monitoring and record-keeping. The revised Handbook provides additional clarity on how widely used tools such as electronic verification systems and digital signatures can be used.
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