01 July 2016

Multinational Banking and Conflicts Among US-EU AML/CTF Compliance & Privacy Law

How US and EU privacy laws affect anti-money laundering and counter-terrorism finance laws.

In Information Statecraft, states employ legal and technological methods to acquire data to map behaviours and expose the illicit economy and networks of political violence. Yet, because financial institutions possess that data, governments must depend on their cooperation. Financial data is both commercial and a source of intelligence and is governed by two often opposing legal regimes.  A comparative analysis of US and EU AML/CTF and data protection laws illuminated issues within 19 compliance areas that will challenge multinationals as they integrate privacy into AML/CTF operations.

While Information Statecraft is applicable to all types of information since all data can be analysed and used beyond its primary intent, the research set out in the paper “Multinational Banking and Conflicts among US-EU AML/CTF Compliance & Privacy Law: Operational & Political Views in Context”  examines financial data’s role in US and EU attempts to combat the illicit economy and political violence, and how privacy law affects those efforts.

by Michelle Frasher

  • University of Illinois at Urbana-Champaign