This is part of a series in which we explain how Information Sharing Partnerships will benefit financial service providers and will help them to protect their customers.
In today’s digital financial landscape, criminals have a structural advantage: they operate across borders and institutions, while banks are traditionally confined to their own data silos. This "intelligence gap" allows money launderers and fraudsters to layer transactions across multiple banks, ensuring no single institution sees the complete criminal web.
In a truly transformational way, Multi-Party Computation (MPC) is helping close this gap. As a well-established cryptographic technology, MPC allows multiple parties to jointly compute a result based on their combined private data, without ever revealing that data to each other. In essence, it enables "analysis without access," making it possible for banks to collaborate while remaining 100% compliant with strict data privacy laws.
Over the past 5-6 years, relentless focus and customer adoption have helped develop MPC into a highly performing service. In contrast, other encryption technologies have remained either experimental or unsafe for Anti-Financial Crime (AFC) purposes.
Information Sharing Partnerships between banks, powered by MPC, are transforming AFC from a reactive, manual process into a proactive and networked defense. This shift enables a "federated intelligence" model where banks can:
Regulatory frameworks like AMLR (Article 75) and PSR (Article 83), alongside the US Patriot Act (314b), explicitly encourage this collaborative approach. Only MPC provides the "Privacy by Design" required to fulfill these mandates without risking GDPR breaches.
The impact is measurable and massive:
MPC-fueled partnerships do NOT require "ripping and replacing" of existing systems. In fact, these information sharing platforms are agnostic and complementary.
They sit as a secure intelligence layer on top of incumbent transaction monitoring systems. While a banks’ internal monitoring system flags a transaction as "unusual," the MPC layer queries the network to confirm if it is "true positive," providing a direction and confidence that legacy systems simply cannot reach alone.
This way of working aligns perfectly with the use of AI. The MPC layer provides the AI with much more -and far more interesting- data to work with; not just from a banks’ own data silo, but from others as well. This significantly increases the chance that the AI will discover genuine insights that a human would have missed, and it supports the AI’s continuous self-improvement efforts.
By turning the financial system into a unified neural network, MPC-enabled partnerships are not just an upgrade; they become instrumental in the war against financial crime.
In 2026, several Information Sharing Partnerships between banks will kick off in Europe. Some focus on fraud detection, some focus on AML, but all use MPC as an enabling technology. Starting out as Proof of Value projects, they will typically involve clusters of 3-4 banks and use historical production data. The PoV projects will initially require 3-5 months to prove business outcomes, quantifiable benefits, and demonstrate integration into automated pipelines. Once a cluster of banks is satisfied, a partnership project will move into production.
Fast forward to 2027 and onwards; we would see clusters of information sharing banks branch out into international networks of cooperation, using MPC as the underlying enabling technology. Of course, closing the intelligence gap ultimately requires the likes of EFECC, AMLA, and FATF to help ensure governance, optimizing cooperation, guiding further expansion, and ensuring best practices.
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