Big data along with distributed ledger technologies can go a long way to fight financial crime, Andrew Bailey, Chief Executive at the Financial Conduct Authority, said.
Speaking at the Financial Crime Conference, Bailey noted that financial crime is evolving constantly, making it difficult to beat it entirely. However, he said that the FCA can promise to continue to focus on tackling the risks it poses to consumers, firms and the integrity of the financial system.
“Fighting financial crime has been and continues to be a high priority for the FCA. Whatever the progress we do not intend to reduce our focus on financial crime – particularly given the evolving risks that exist and the level of public interest in ensuring the cleanliness of financial services”, said Bailey.
Regarding future course of action, Bailey pointed out two crucial points. First and foremost, he highlighted the need to strike the right balance here between enabling change and having a predictable and clear framework of rules. The second point relates to the use of technology. In this context, he said:
“If ever there was an area that strikes me as ripe for applying technology to harness the power of Big Data alongside distributed ledger technologies to produce better outcomes, while rationalising the process and cutting costs, it is financial crime… We can’t stay on the cusp for too long, and here as authorities we should play a role to enable change to happen, because doing so will help us advance our objectives.”
The comments come after the FCA recently announced the firms that were successful in their applications to begin testing in the first cohort of the regulatory sandbox. The cohort included a number of blockchain-based companies which includes Billon, BitX, Epiphyte, Govcoin Limited, Nivaura, Otonomos, SETL, Tradle and Tramonex.
