Asian central bankers debate fintech's role in tackling money laundering, terror financing

15 May 2018 12:26pm
Asian central bankers discussed the role of new financial technologies, or fintech, in helping address money-laundering and terrorist-financing risks, among other issues, during a meeting in Malaysia last week held under the aegis of the Financial Stability Board, or FSB.

The members of the Asian Regional Consultative Group — one of the Basel-based FSB's six regional bodies — met in Kuala Lumpur on May 11 as a guest of Bank Negara Malaysia, the Malaysian central bank, according to an FSB statement.

“They discussed steps that the official sector could take to promote innovation that mitigates money-laundering and terrorist-financing risks, and in particular, shared experiences with know-your-customer utilities,” said the statement. The subject was discussed within the context of a decline in correspondent banking relationships and the growth of crypto-assets.

The grouping — which is made up of members from 16 Asian jurisdictions — also discussed resolution of big banks in the context of cross-border repercussions.