* Barclays, Lloyds, NatWest among banks sharing data with
NCA
* Project to curb organised crime, fraud, money laundering
* First such programme worldwide on this scale, NCA says
* Economic crime estimated to cost UK up to $450 bln per
year
LONDON, July 26 (Reuters) – Barclays, NatWest
and Lloyds are among seven banks to share customer data with the
National Crime Agency (NCA) in the largest project of its kind
worldwide to tackle criminal gangs, money laundering and “dirty
money” flowing through the country.
Reuters revealed one year ago that more than six banks,
including NatWest and Lloyds, were part of trials with
law enforcement and government agencies that involved sharing
intelligence on client accounts which raised concerns about
economic crime that posed a threat to Britain.
The NCA, a top investigator, says the project went live in
May, included voluntary data sharing deals with Santander
, TSB, Metro Bank and Starling Bank,
and had already identified eight new crime networks that might
be exploiting the financial system.
Britain has ramped up efforts to tackle economic crime,
which lawmakers say costs the economy up to around 350 billion
pounds ($452 billion) each year, after Russia’s 2022 invasion of
Ukraine shone a spotlight on how kleptocrats and criminals used
the country as a haven to launder, hide and spend “dirty money”.
Adrian Searle, director of the NCA’s National Economic Crime
Centre, told Reuters that three crime networks had been passed
to the NCA’s intelligence division for further investigation.
The project has also uncovered new intelligence linked to 10 of
the agency’s biggest investigations. He did not divulge details.
“The fundamental purpose is to bring together the collective
efforts of law enforcement, government, regulators and the
private sector to combat economic crime,” Searle said.
Singapore launched a digital customer data sharing platform
known as COSMIC (Collaborative Sharing of Money
Laundering/Terrorist Financing Information and Cases) with six
banks in April. But this does not include law enforcement,
Searle said.
DATA PROTECTION
Under the programme that is due to run until October, bank
staff are seconded to the NCA to form a team of between 15 to 20
intelligence officers, data scientists and analysts to probe
movement of money suggestive of criminal behaviour – and ensure
legitimate customers are left alone.
Banks have long been wary of sharing customer data for fear
of falling foul of European data protection and privacy laws,
which could trigger litigation by customers whose accounts have
been locked pending investigations.
But the NCA and the banks insist they only share account
data with “multiple clear indicators of economic crime” on
customers, people or businesses that meet a set of markers about
potential criminal behaviour. Banks’ lawyers have also ensured
all data sharing meets an acceptable risk.
“We are deeply conscious of the issues around data privacy,”
one senior banking executive involved in the trial said.
“It’s also clear that our terms and conditions as banks
enable us to share the information without notification to the
customer because this is all ultimately to do with fulfilling
our legal obligations to help detect crime and prevent financial
harm,” he added.
The Financial Conduct Authority (FCA) regulator is observing
the project. Without this, there would have been less appetite
for the pilot, the banker said.
The initiative builds on a first pilot between the NCA,
NatWest and Lloyds between October 2021 and February 2022. It
tested the practicality and benefit of fusing bank and crime
data to better identify and disrupt economic crime – and led to
one arrest and charge.
The volume of accounts identified, however, represents a
“very small fraction” of the British total, the NCA says.
The ultimate goal is that such trials will pave the way for
the use of data for real-time insight to prevent crime.
“But it’s a long way to go before we get there,” Searle
said.
($1 = 0.7752 pounds)
(Reporting by Kirstin Ridley and Sinead Cruise; Editing by Paul
Simao)
