Estonia Pioneers Financial Crime Prevention with AML Bridge Pilot
In a groundbreaking move, Estonian startup Salv has partnered with four of the country’s largest banks to launch a pilot program aimed at preventing financial crimes through collaborative technology.
The AML Bridge Pilot
The AML Bridge pilot, which received support from Estonia’s Financial Supervisory Authority, Financial Intelligence Unit, and Data Protection Inspectorate, aims to prove that shared crime-fighting efforts in the banking industry can effectively combat money laundering. The pilot has three main objectives:
- Demonstrate collaborative approaches are more effective: To show that shared efforts can outperform current methods
- Confirm data sharing safety and security: Using Privacy Enhancing Technology (PET) to ensure the protection of sensitive information
- Set a new standard for financial institutions across Europe: Establishing a benchmark for financial crime prevention
According to Salv’s founder and CEO Taavi Tamkivi, Estonian banks and regulators have an open-minded approach to tackling financial crime with intelligent technology. “The current system is unduly burdensome for honest customers who have nothing to do with money laundering,” he said. “Achieving a new crime-fighting standard is a complex objective because of the need to respect privacy protection rights.”
Overcoming Silos
Tamkivi emphasized that criminals often cooperate and share best practices, whereas banks work in silos due to regulatory challenges. AML Bridge aims to bridge this gap by providing secure access to third-party intelligence and facilitating collaboration among financial institutions.
The X-Road e-Platform
The pilot builds upon Estonia’s X-Road e-platform, which enables data sharing while keeping it in the hands of the originator for maximum immunity against cyber-attacks and robust personal data protection. AML Bridge will only allow a bank to access another bank’s intelligence if there is a reasonable basis according to Estonia’s Money Laundering and Terrorist Financing Prevention Act.
Industry Support
Erki Kilu, chairman of the Estonian Banking Association, hailed the pilot as an opportunity for Estonia to test intelligent collaborative solutions, which could be implemented outside the country. “Estonia could become an opinion leader in preventing money laundering acts,” he said.
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