United States

FATF summary of the 2017 FinTech and RegTech Forum

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The Financial Action Task Force (FATF) held a forum in May 2017 and discussed the significant trends and developments of FinTech and RegTech, and how the financial services landscape could look in the near future, including peer-to-peer transfers, crowd funding, distributed ledger technology or block chain-based services, analytical tools, know-your-customer (KYC) utilities and digital identity. Chairman's summary of the FATF FinTech and RegTech Forum 2017

Several examples were shared on how countries have approached the regulation of FinTech institutions and activities, for instance, through clarifying, modifying or expanding existing regulatory regimes or by establishing new licensing frameworks. Participants also explored how FinTech and RegTech innovations could have public sector applications and enhanced capabilities to monitor risks in the financial system and to investigate money laundering (ML) and terrorist financing (TF).

The participants at the forum discussed how authorities and the private sector were navigating a world where transactions and relationships were increasingly digitized, and shared their experiences in adapting their practices to identify and mitigate the different ML and TF risks brought about by these developments.

Participants explored how technology-based innovations have the potential to be utilized to better fight ML and TF. For example, big data, artificial intelligence and machine learning could improve the detection of suspicious activities, potential illegal activities and criminal networks. The application of technology to support customer due diligence was discussed in detail, covering the various models and what that meant for the roles and responsibilities of the user(s) and provider(s).