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

Kirstie Ball; Ana Canhoto; Elizabeth Daniel; Sally Dibb; Maureen Meadows; Keith Spiller

doi:10.1016/j.techfore.2020.119996

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

Kirstie Ball, Ana Canhoto, Elizabeth Daniel, Sally Dibb, Maureen Meadows, Keith Spiller

School of Marketing and Management

Research output: Contribution to journal › Article › peer-review

4 Citations (Scopus)

113 Downloads (Pure)

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.

Original language	English
Article number	119996
Journal	Technological Forecasting and Social Change
Volume	155
Early online date	16 Mar 2020
DOIs	https://doi.org/10.1016/j.techfore.2020.119996
Publication status	Published - 1 Jun 2020

Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Technological Forecasting and Social Change. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Technological Forecasting and Social Change, 155, (2020) DOI: 10.1016/j.techfore.2020.119996

© 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

Funder

Keywords

Anti-money laundering
Counter-terrorist finance
Data exchange mechanisms
Financial services
information flows
Multi-level analysis
Remediation

ASJC Scopus subject areas

Business and International Management
Applied Psychology
Management of Technology and Innovation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.techfore.2020.119996

Post-PrintAccepted author manuscript, 1.06 MBLicence: CC BY-NC-ND

Cite this

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

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{\textquoteright} 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 {\textquoteleft}set theoretic{\textquoteright} perspective on multi-level organizational research, to argue that the multi-level effects of this regulation can be examined in parallel.",

keywords = "Anti-money laundering, Counter-terrorist finance, Data exchange mechanisms, Financial services, information flows, Multi-level analysis, Remediation",

author = "Kirstie Ball and Ana Canhoto and Elizabeth Daniel and Sally Dibb and Maureen Meadows and Keith Spiller",

note = "NOTICE: this is the author{\textquoteright}s version of a work that was accepted for publication in Technological Forecasting and Social Change. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Technological Forecasting and Social Change, 155, (2020) DOI: 10.1016/j.techfore.2020.119996 {\textcopyright} 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Copyright {\textcopyright} and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. ",

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AU - Meadows, Maureen

AU - Spiller, Keith

N1 - NOTICE: this is the author’s version of a work that was accepted for publication in Technological Forecasting and Social Change. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Technological Forecasting and Social Change, 155, (2020) DOI: 10.1016/j.techfore.2020.119996 © 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

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N2 - 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.

AB - 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.

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KW - information flows

KW - Multi-level analysis

KW - Remediation

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ER -

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

Abstract

Bibliographical note

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Keywords

ASJC Scopus subject areas

UN SDGs

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Sally Dibb

Maureen Meadows

Cite this

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

Abstract

Bibliographical note

Funder

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Other files and links

Fingerprint

Profiles

Sally Dibb

Maureen Meadows

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