Organizational tensions arising from mandatory data exchange between the private and public sector: The case of financial services

Ball, Kirstie and Canhoto, A.I. and Daniel, E. and Dibb, S. and Meadows, Maureen and Spiller, Keith (2020) Organizational tensions arising from mandatory data exchange between the private and public sector: The case of financial services. Technological Forecasting & Social Change, 155 (6). ISSN 0040-1625

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Abstract

This paper examines the organizational tensions arising from mandatory data exchange initiatives between private and public organizations. The focus is the UK financial services sector, which is required to monitor and report on customer identities and transactions under the country’s Anti-Money Laundering/Counter-Terrorist Finance (AML/CTF) regulations. The transferred data are generated from existing organizational activities, systems, processes and working patterns; we examine how government demands for such data affect commercial priorities, customer relationships and working patterns in the sector. We adopt an exploratory approach to investigate this phenomenon, consisting of 16 in-depth interviews, analysis of documents and two case studies. Three contributions are made. First, we use remediation theory to show that existing organizational arrangements are reconfigured at multiple analytical levels, creating tensions between the organizations’ commercial and compliance roles. Second, we establish the information flow as an appropriate unit of analysis in the study of data exchange mechanisms and reveal the flows that characterise AML/CTF compliance for financial services organizations. Finally, we adopt a ‘set theoretic’ perspective on multi-level organizational research, to argue that the multi-level effects of this regulation can be examined in parallel.

Item Type:	Article
Identification Number:	10.1016/j.techfore.2020.119996
Dates:	Date Event 4 March 2020 Accepted 16 March 2020 Published Online
Uncontrolled Keywords:	Data exchange mechanisms, information flows, Financial services, Anti-money laundering, Counter-terrorist finance, Remediation, Multi-level analysis
Subjects:	CAH09 - mathematical sciences > CAH09-01 - mathematical sciences > CAH09-01-02 - operational research
Divisions:	Faculty of Business, Law and Social Sciences > College of Law, Social and Criminal Justice
Depositing User:	Keith Spiller
Date Deposited:	02 Apr 2020 08:30
Last Modified:	11 Jun 2024 12:49
URI:	https://www.open-access.bcu.ac.uk/id/eprint/9076

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