The exchange of information should be seen as a strategic approach to mitigating risk, improving compliance practices, and staying ahead of emerging threats. When sharing insights, both internally within a firm and externally with other stakeholders, you create a proactive stance on financial crime prevention.

One of the key components of this is due diligence. The more information that is shared about a customer’s financial history, transactions, and behaviour patterns, the clearer the picture you get of their risk profile. This means you can make informed decisions about which customers need further scrutiny or monitoring. It reduces the chances of missing red flags that might otherwise go unnoticed in isolation. For example, you might be dealing with a customer whose behaviour seems off but doesn’t raise immediate alarms. However, a partner institution may have had similar concerns about the same individual, and through information sharing, you both benefit from a clearer risk assessment. This helps to avoid the costly and reputational damage that can come from failing to spot money laundering or other illicit activity.

The sharing of information can also enhance your organisation’s ability to comply with regulatory requirements. The Financial Conduct Authority (FCA) and the Financial Action Task Force (FATF) continue to emphasise the importance of collaborative efforts in combatting financial crime. By actively participating in information-sharing initiatives, businesses not only comply with regulatory expectations but also create an environment of continuous improvement.