Traditional Anti-Money Laundering (AML) efforts rely on each bank independently flagging suspicious transactions, which are then reported to regulators. Criminal networks exploit this siloed approach by dividing their operations across various institutions, appearing harmless when viewed from a single bank’s limited perspective. Strict data-protection rules and banking regulations further complicate data sharing, leaving each bank with only its own records.
A new approach to secure AML collaboration
Partisia Confidential Computing introduces a new way to overcome these obstacles and offers a solution for banks to join forces within a heavily regulated industry.
Our Multi-Party Computation (MPC) technology allows multiple banks to share insights on potentially illicit activities while maintaining strict privacy. Suspicious transaction patterns become visible to each participating institution - without revealing any raw or personally identifiable data. Moreover, we utilize blockchain technology in order to keep a transparent and immutable audit trail, helping the banks within the network to cooperate with enhanced trust.
Instead of uploading all transactions into one repository, each bank keeps its data encrypted and under its own control, eliminating the need for a single “trusted third party.” This design ensures compliance with requirements such as GDPR, AML/KYC guidelines, and emerging frameworks like the AI Act or Data Act. By securely sharing only the insights needed to spot suspicious patterns, compliance officers can finally see connections that would otherwise be invisible, detecting money laundering that spans multiple institutions and jurisdictions.
In practice, each bank would deploy one node of Partisia’s Platform within its own secured environment, ensuring that no plain-text information leaves its premises. The platform transforms raw data into cryptographically protected “secret shares,” which are then used in distributed computations between multiple nodes across the different banks. If suspicious activity at PRT Bank matches up with patterns at other financial institutions, compliance teams would be able to receive alerts highlighting the potential link - without any exchange of confidential details.
This approach brings several operational benefits to a bank like PRT. Compliance officers no longer need to rely on time-consuming data-sharing agreements or worry about violating privacy rules. They also see fewer false positive alerts, since risk scores are assessed across a broader dataset, producing more accurate results.
Moreover, every step of the process is recorded in a decentralized database, ensuring an immutable audit trail for regulators. Compliance officers at PRT Bank can easily use this to show due diligence if questioned by authorities, aligning with policies and standards set by their AML Compliance Team.
Transforming AML processes
A solution like Partisia’s offers a clear roadmap for institutions seeking to strengthen AML controls without compromising security or compliance. It can be introduced gradually, starting with pilot programs that connect two or three institutions. These pilots would help compliance and data-protection teams validate workflows, test regulatory compliance, and refine how alerts are escalated when suspicious patterns cross institutional boundaries. Over time, as confidence in the solution grows, the network of collaborating banks can expand, multiplying the system’s benefits and making it even harder for criminals to exploit gaps in the financial sector.
The result is a forward-thinking approach that keeps pace with shifting regulations in an increasingly digital landscape. It recognizes that confidential collaboration is not just a compliance checkbox, but a strategic advantage for banks aiming to protect their clients’ trust and the integrity of the global financial system. By embracing confidential computing, institutions can remain proactive and aligned with new rules - such as those found in NIS2, the Digital Markets Act, or the Cyber Resilience Act - while preserving the strict data privacy that customers and regulators demand.
Partisia Confidential Computing offers a groundbreaking way for banks to unite in the fight against money laundering. By leveraging Secure Multi-Party Computation and Blockchain Technology, financial institutions can share intelligence, detect complex laundering schemes, and maintain compliance. When banks collaborate under a secure and future-proof infrastructure, everyone benefits - except the criminals seeking to hide in the shadows.
Enhancing trust and transparency with blockchain
The Partisia Platform uses a decentralized ledger to record every step of the workflow, creating an immutable audit trail that can be accessed by authorized stakeholders.
This blockchain technology provides several key benefits:
1. It allows regulators to verify all necessary checks have been performed without requiring access to sensitive customer data.
2. It ensures all branches within a banking group are working from a single source of truth, eliminating discrepancies and reducing the risk of errors.
3. It enhances accountability by making it impossible to alter or delete records, which is essential for building trust with customers and oversight agencies.
This combination of privacy and transparency is a game-changer for banks.
They are enabled to meet the increasing demand for data protection while maintaining the high standards of compliance required in today’s regulatory environment.
“It takes a network of good actors to beat a network of bad actors”
