U.S., UK, and EU Sign Historic AML Information Sharing Agreement

Major Development – November 28, 2024

The United States, United Kingdom, and European Union have signed a groundbreaking agreement to share financial intelligence and coordinate enforcement actions against transnational money laundering and terrorist financing networks.

Agreement Highlights

Information Sharing

• Real-time sharing of suspicious activity reports between FIUs
• Joint database of high-risk entities and individuals
• Coordinated sanctions designations and enforcement
• Shared typologies and threat assessments

Coordinated Enforcement

• Joint investigations of major money laundering networks
• Simultaneous enforcement actions across jurisdictions
• Asset recovery and sharing protocols
• Coordinated messaging to financial institutions

Technology Collaboration

• Development of interoperable transaction monitoring systems
• Shared AI and machine learning models for detection
• Common data standards for cross-border information exchange
• Joint research on emerging threats and technologies

Scope and Coverage

The agreement covers:

• Money laundering and terrorist financing
• Sanctions evasion
• Proliferation financing
• Corruption and kleptocracy
• Cybercrime proceeds
• Human trafficking and modern slavery

Privacy Protections

The agreement includes robust privacy safeguards:

• Information shared only for legitimate law enforcement purposes
• Strict data protection standards aligned with GDPR
• Prohibition on use for non-financial crime investigations
• Regular audits of information sharing practices
• Individual rights to challenge erroneous information

Implementation Timeline

January 2025: Technical infrastructure deployment begins

March 2025: Pilot program with select FIUs

July 2025: Full operational capability

December 2025: First annual effectiveness review

Official Statements

United States

Treasury Secretary Janet Yellen: “This agreement represents a quantum leap in our ability to combat transnational financial crime. Criminals don’t respect borders—our enforcement shouldn’t either.”

United Kingdom

Chancellor of the Exchequer Jeremy Hunt: “The UK is proud to lead this historic collaboration. By sharing intelligence and coordinating action, we make it exponentially harder for criminals to exploit our financial systems.”

European Union

European Commission Executive Vice President Valdis Dombrovskis: “This agreement strengthens the global AML framework and demonstrates our commitment to protecting the integrity of the international financial system.”

Impact on Financial Institutions

Enhanced Scrutiny

Financial institutions should expect:

• More coordinated regulatory examinations across jurisdictions
• Increased information requests from multiple authorities
• Greater focus on cross-border transaction monitoring
• Enhanced expectations for international cooperation

Opportunities for Collaboration

The agreement may enable:

• More effective public-private partnerships
• Better feedback on SAR quality and usefulness
• Clearer guidance on emerging threats
• Recognition of compliance efforts across jurisdictions

Industry Response

The Institute of International Finance praised the agreement: “This level of international cooperation is essential to combat increasingly sophisticated financial crime networks. We look forward to working with authorities to ensure effective implementation.”

Next Steps

Additional countries are expected to join the agreement:

• Canada, Australia, and Japan in discussions
• Singapore and Switzerland expressing interest
• Framework allows for expansion to other jurisdictions

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