How does the General Data Protection Regulation (GDPR) affect financial intelligence exchange with third countries?

• Published in: Journal of money laundering control Vol. 27; no. 1; pp. 158 - 170
• Main Author: Haq, Md. Zahurul
• Format: Journal Article
• Language: English
• Published: London Emerald Publishing Limited 02.01.2024; Emerald Group Publishing Limited
• Subjects: Confidentiality; Data integrity; Data processing; EU directives; General Data Protection Regulation; Human rights; International cooperation; Law enforcement; Money laundering; Personal information; Privacy; Terrorism financing; Switzerland; Bangladesh; Bangladesh; Financial Intelligence Unit; Money Laundering; General Data Protection Regulation; Egmont Group
• ISSN: 1368-5201; 1368-5201; 1758-7808
• DOI: 10.1108/JMLC-09-2022-0137

Purpose This paper aims to examine the probable effect of the General Data Protection Regulation of the European Union on the transfer of financial intelligence to a third country without an adequacy decision. Design/methodology/approach This is an analytical study of the financial intelligence exchange mechanisms between the Bangladesh Financial Intelligence Unit (BFIU) and its foreign counterparts. The research analyses the key challenges this national agency faces in using the Egmont Group membership to import financial intelligence from jurisdictions with a superior data protection regime. Findings Membership in the Egmont Group of Financial Intelligence Units does not guarantee unrestricted international intelligence exchange. Existing data protection regulations in Bangladesh are inadequate. This may forbid the transfer of the financial intelligence linked to European Union (EU) data subjects to Bangladesh. Research limitations/implications This paper does not cover a thorough discussion on any specific alternative tools for data transfer from the EU to a third country except for “appropriate safeguards” options. Practical implications The results of this study will help understand the existing legal and institutional limitations that may prevent intelligence exchange between the BFIU and its EU counterparts. Originality/value The study helps ascertain the legislative reform necessary in Bangladesh, a third country, to facilitate the transfer of financial intelligence from the EU.