The Commission paves the way for smarter use of technology in compliance

The Commission has today published a feedback paper and updated sections of the Handbook on Countering Financial Crime (AML/CFT/CPF) (the “Handbook”), setting out how it has responded to consultation feedback on proposed changes to further support the use of technology to combat financial crime.

The changes are part of the Commission’s Digital Finance Initiative, following from its consultation on Supporting Growth with Digital Finance which closed in March. Those responding to the consultation agreed with the proposed approach and provided thoughtful suggestions on how greater clarity could be given around the appropriate use of technology within compliance frameworks.

These updates are not driven by changes in international standards or in response to recommendations from the MONEYVAL evaluation report. Instead, they reflect the Commission’s intention to help firms make confident, responsible use of technology to enhance the effectiveness and efficiency of their anti‑financial crime controls. The amendments are intended to remove uncertainty and to encourage innovation and investment in appropriate solutions which have the potential to both enhance efficiency and outcomes.

Technology already plays an important role in areas such as client onboarding, monitoring and record‑keeping. The revised Handbook provides additional clarity on how widely used tools such as electronic verification systems and digital signatures can be used.

The Commission is grateful to all those who took part in the consultation. This feedback paper represents the first phase of the Commission’s response to its consultation on Supporting Growth with Digital Finance. Further feedback on other aspects of the Digital Finance Initiative will be published in due course.