British banks, including Lloyds and NatWest, are planning to share more data with their peers in an effort to combat economic crime, particularly money laundering and terrorism financing, in the country. These efforts come as the UK aims to tackle economic crime, which is estimated to cost the economy around $450 billion annually. Several banks are in advanced talks with law enforcement and government agencies to launch two pilot programs that will systematically share intelligence on major financial crimes. The first pilot will allow companies to share data if they identify multiple flags of potential serious financial crime, while the second pilot involves launching a broader database for suspected economic crime. The trials are designed to align with a new UK law that aims to crack down on financial crime and improve Britain’s reputation as a global destination for dirty money. The involvement of major banks in these data-sharing initiatives is seen as crucial in combating money laundering and fraud. However, there are concerns about potential risks of over-sharing and the need for appropriate safeguards to protect customer data. The pilots could be launched by October when the economic crime and corporate transparency bill is expected to become law.
