On August 7th, 2018, the UK’s Financial Conduct Authority (FCA) announced the creation of the Global Financial Innovation Network (GFIN) in collaboration with 11 financial regulators and related organisations from around the world.
The introduction of the network is building on the FCA’s proposal earlier this year to create a ‘global sandbox’. Its purpose is to reduce the time it takes to bring ideas to new international markets and to provide a setting for regulators to collaborate on common challenges or policy questions that firms face in different jurisdictions.
As stated in the official release by the FCA, “the network will seek to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches”.
At Know Your Customer, we welcome such a proposal for tighter international cooperation and better collaboration between innovative firms and regulators. By fostering extensive collaboration between all key stakeholders (regulators, financial institutions and disruptive technology companies), the industry will be better prepared to face the challenges that the new regulatory environment and the rising penetration of money laundering practices bring. We do hope that similar initiatives will be introduced in other parts of the world, as they play a key role in pushing the industry forward and acknowledging the power of automation to help organisations meet their compliance requirements.