Whilst finance organisations and government bodies are taking advantage of technology to tackle complex fiscal crimes, specialists argue that a stronger alliance between the public and private sectors must be formed. These experts foresee the necessity for international data standards to be established, in conjunction with government regulators, businesses and worldwide banking entities.
However, the prospect of increased data exchange across sectors, between governments, regulators and banks – while beneficial for improved transparency and safety – raises questions about personal privacy rights.
Colm O’Flaherty, holding the position of director for Financial Crime at Deloitte, argues that inadequate collaboration is hindering the state’s capability to prevent fiscal crime.
A recent study carried out by the Royal United Services Institute emphasised the apparent deficiencies within current legislation to competently tackle financial crime, especially in Ireland. O’Flaherty suggests the resultant discord in monitoring, intelligence and data protection policies leads to wasteful utilisation of resources and excessive reporting, resulting in insignificant outcomes.
“Criminals are exploiting the disorganisation and lack of data sharing, allowing them to shift from bank to bank,” O’Flaherty reports.
He emphasises the pressing need for revising current legislation and strategically reorienting to foster an efficient partnership between public and private sectors towards fighting financial crime.
“We live in a global world where criminal elements can identify system vulnerabilities, and unfortunately, we currently form part of these vulnerabilities,” he adds.
Similarly, Frankie Cronin, a business risk partner at Grant Thornton, agrees with O’Flaherty’s sentiments.
“There are laudable objectives at the European level, but I am uncertain about the presence of a suitable infrastructure that can support appropriate, real-time data exchange,” says Cronin. Cronin further highlights the potential hurdles related to GDPR when sharing information, wherein past prosecutions of criminal elements have failed due to breaches in data privacy by finance organisations sharing data.
O’Flaherty points out the state’s conservative approach to balancing GDPR requirements with the prevention of financial crime and looks forward to the forthcoming EU Anti-Money Laundering Directive package. He anticipates this will provide clarity and enable data sharing between public and private entities to prevent financial crimes and safeguard communities.
“For great triumphs in mitigating and preventing fiscal fraud, it is imperative for our banking institutions, regulating bodies, enforcement authorities, telecom firms, and the tech and social-media headquarters based here to join forces. They should pool their resources, intelligence and knowledge with an aim of safeguarding the citizens of Ireland.”