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The Carve-Out and Its Conditions
On the Commission's non-binding Guidelines, lawful financial crime scoring falls outside Article 5(1)(c) and 5(1)(d) because elements of each prohibition are absent or the paragraph 209 conditions are met, not because of any exemption, so a change in data, reuse or treatment can lose the position. The exposure sits at the edges of the estate. A nine-question assessment per system, documented and reviewed by counsel, should be run before a supervisor or customer asks.
Key findings
- On the Commission's Guidelines, lawful financial crime scoring falls outside Article 5(1)(c) because elements of the prohibition are absent, not because it is exempt.
- Unfavourable treatment does not require harm, so enhanced due diligence, holds and heightened monitoring can engage a consequence limb.
- AML screening can fall within Article 5(1)(d) and, on the Commission's view, leaves it only where it uses the data AML law specifies and is subject to human assessment and verification.
In the paper
- What the Guidelines are
- Article 5(1)(c) reaches further than many assume
- Elements absent, not an exemption
- The crime-prediction prohibition names AML
- The exposure sits at the edges
- Demonstrate it before anyone asks
Michael Clark
Chief Executive Officer, Standard Intelligence
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