The Knoble and BioCatch publish “Financial Crime and 314(b): A Practical Guide to Navigating Information Sharing Obstacles”
CHATTANOOGA, TENN. AND NEW YORK (Oct. 9, 2024) – As financial crime, including scams, money laundering, and human trafficking, reaches unprecedented levels, the need for global collaboration has never been more critical. In response, The Knoble, an alliance of financial service professionals, law enforcement, regulators, and non-governmental organizations dedicated to fighting human crime, and BioCatch, the global leader in digital fraud detection and financial crime prevention powered by behavioral biometric intelligence, are proud to announce the release of “Financial Crime and 314(b): A Practical Guide to Navigating Information Sharing Obstacles.” This essential resource provides financial institutions with recommendations on how to overcome the challenges they face in sharing information and practical advice to help practitioners move the needle toward progress.
With scams and money mule schemes increasing all around the world, The Knoble and BioCatch developed this guide from a global perspective, incorporating proven strategies from countries such as Australia and the UK, where collaborative models of information sharing have already shown significant success. The UK’s Joint Money Laundering Taskforce (JMLIT), for example, has supported more than 750 investigations and identified more than 5,000 suspect accounts since its inception, demonstrating the power of cooperation between banks and law enforcement (Winning the AML Intelligence War with Public Private Partnerships | White & Case LLP (whitecase.com)).
“We are witnessing fraud and scams not only growing but actively funding and facilitating other serious crimes like human trafficking. Current efforts in information sharing are often siloed within solution walls or tend to be reactive responses to events,” said Ian Mitchell, Founder of The Knoble. “We have existing proactive information-sharing models in place, but they need to be expanded and optimized to comprehensively connect the dots and effectively combat organized criminal activity. Efforts like this to rethink and modernize information sharing are timely and critical to protect people.”
In addition to the UK, Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act has encouraged financial institutions to share critical information, producing promising results in uncovering fraud and scams. It has also launched the Australian Financial Crimes Exchange (AFCX) to coordinate the sharing of financial crime data across the public and private sector. While the U.S. has made strides with initiatives like the FinCEN Exchange, there is still room for improvement in fostering collaboration between institutions (KyrosAML).
“Criminals are organized, share information, are innovative, and constantly adapt,” Lester Joseph, of Joseph AML Consulting LLC, said. “That’s why it is critical for financial institutions to find new methods and leverage existing opportunities to share information about fraud and money laundering more effectively. We are stronger when we work together.”
Despite expanded guidance by FinCEN, banks are still hesitant to share information under 314(b). The guide touches on the current challenges in the existing 314(b) program and what steps can be taken to create a modern information sharing model.
“Varying regulatory policies, fear of liability, and a lack of incentives continue to hinder banks from sharing vital data that could help combat fraud and financial crime,” BioCatch CEO Gadi Mazor said. “Criminals very effectively exploit this delay in communication to their own great economic benefit. Innovative new models allowing for real-time risk assessments between sending and receiving institutions are crucial to flipping the cat-and-mouse game between banks and financial criminals. We as a community must join together in a unified offensive front to better protect the global financial system and the customers who rely upon it.”
The guide also recommends several opportunities that financial institutions and law enforcement can take advantage of that don’t rely on 314(b). By providing a roadmap, The Knoble and BioCatch are committed to pushing the financial industry toward a future where information sharing is a routine, essential part of risk management and financial crime prevention.
Access the Guide:
To access the “Financial Crime and 314(b): A Practical Guide to Navigating Information Sharing Obstacles,” visit The Knoble Network Member Center’s Resource Library. Not a member yet? Join us at theknoble.com/join-the-fight to gain exclusive access to this guide and more.
Join Our Upcoming Webinar: Unlocking the Power of Collaboration:
As financial crime continues to evolve, financial institutions are often left with only fragments of a larger puzzle when it comes to criminal activities that span multiple institutions. Even with rigorous compliance and Suspicious Activity Reports (SARs), connecting the dots can be a major challenge.
To address these obstacles, The Knoble invites you to a special webinar sponsored by BioCatch: “Unlocking the Power of Collaboration: Overcoming Challenges in Financial Crime Information Sharing.” Join us on Wednesday, Oct. 23, 2024, from 1 to 2 p.m. ET, for an insightful session that delves into the pressing challenges that banks face in sharing information and offers practical advice on how to overcome these barriers.
Secure your spot now by registering here and be part of this crucial discussion!
About BioCatch:
BioCatch stands at the forefront of digital fraud detection, pioneering behavioral biometric intelligence grounded in advanced cognitive science and machine learning. BioCatch analyzes thousands of user interactions to support a digital banking environment where identity, trust, and ease coexist. Today, 32 of the world’s largest 100 banks and 210 total financial institutions rely on BioCatch Connect™ to combat fraud, facilitate digital transformation, and grow customer relationships. BioCatch’s Client Innovation Board – an industry-led initiative featuring American Express, Barclays, Citi Ventures, HSBC, and National Australia Bank – collaborates to pioneer creative and innovative ways to leverage customer relationships for fraud prevention. With more than a decade of data analysis, 92 registered patents, and unmatched expertise, BioCatch continues to lead innovation to address future challenges. For more information, please visit www.biocatch.com.
About The Knoble:
Founded in 2019 by Ian Mitchell, we are a non-profit network of Financial Institutions, law enforcement, financial services, and NGOs passionate about fighting Human Crime — scams, human trafficking, child exploitation, and elder abuse. Through thought-leadership projects and industry-leading initiatives, we are a network of professionals dedicated to making a difference. Join us today, apply for vetting at The Knoble.com, and receive complimentary access to The Knoble Network Member Center, where like-minded professionals join to connect and participate in roundtables, forums, and more. Reach out to Ken@TheKnoble.com if your organization is interested in becoming a corporate member or sponsoring an initiative.
PR Contacts:
Mac King
BioCatch Senior Comms Manager
Mac.King@BioCatch.com
Rose McQuitty
The Knoble Communications Director
Rose@TheKnoble.com
