British banks are gearing up to share more data with their peers on suspected serious economic crime as part of wider efforts to stem dirty money flows into the country from Russia and elsewhere, four sources with knowledge of the matter told Reuters.
More than half a dozen banks are in advanced talks with British law enforcement and government agencies on plans to systematically share intelligence on major financial crimes such as money laundering and terrorism financing in two landmark pilots expected to launch within months, the sources said.
The moves come as Britain ramps up efforts to tackle economic crime, which lawmakers say costs the economy around 350 billion pounds ($450 billion) each year, and as the West has imposed sanctions against individuals, companies and industries to isolate Russia after its invasion of Ukraine.
Banks have long been wary of sharing customer data for fear of falling foul of strict British and global data protection and privacy laws, which could trigger litigation by customers whose accounts have been locked pending investigations.
However, the trials are designed to coincide with a new UK law that is expected to take centre stage in the financial crime crackdown and tackle Britain’s image painted by parliamentarians as a global “destination of choice” for dirty money.
“Banks are the first line of defence against money laundering and fraud,” said lawmaker Simon Fell, vice-chair of a parliamentary anti-corruption group. “So any new mechanisms to share information that could help track down criminals, while respecting sensible privacy rights, is welcomed,” he told Reuters.
Two of Britain’s “Big Four” banks – Lloyds and NatWest – are participating in both data trials, industry sources said.
Lloyds and NatWest both declined to comment. HSBC and Barclays declined to comment when asked if they were taking part.
The first pilot involves around six banks and Britain’s National Crime Agency (NCA), and would allow companies to share data if they identify multiple flags about potential serious financial crime, three of the sources said, speaking on condition of anonymity because the plans are not yet public.
The second pilot would involve launching a broader database for suspected economic crime and involves around eight banks, Britain’s interior ministry (Home Office) and bank lobby group UK Finance, two of the sources said.
A spokesperson for the Home Office said the government’s plans to combat economic crime would ensure a co-ordinated response between the government, law enforcement and the private sector.
