The UK and the US have signed a bilateral artificial intelligence (AI) agreement to collaborate in mitigating the risk of AI models; following commitments made at the AI Safety Summit in November 2023. 

Following this partnership, both the UK and the US will build a common approach to AI safety testing and work closely to accelerate robust suites of evaluations for AI models, systems and agents. The memorandum of understanding was signed by Secretary of State for Science, Innovation, and Technology, Michelle Donelan, on behalf of the UK, and Commerce Secretary Gina Raimondo, on behalf of the US.

Both countries have set out plans to share their capabilities to ensure they can effectively tackle AI risks. The UK and US AI Safety Institutes intend to perform at least one joint testing exercise on a publicly accessible model. They also intend to tap into a collective pool of expertise by exploring personnel exchanges between the Institutes.

“This agreement represents a landmark moment, as the UK and the US deepen our enduring special relationship to address the defining technology challenge of our generation,” explained Donelan.

The partnership will take effect immediately and is intended to enable both organisations to work seamlessly with one another. As AI rapidly develops, both governments recognise the need to act now to ensure a shared approach to AI safety which can keep pace with the technology’s emerging risks.

Raimondo said: “AI is the defining technology of our generation. This partnership is going to accelerate both of our Institutes’ work across the full spectrum of risks, whether to our national security or to our broader society. Our partnership makes clear that we aren’t running away from these concerns – we’re running at them. Because of our collaboration, our Institutes will gain a better understanding of AI systems, conduct more robust evaluations, and issue more rigorous guidance.”

Assessing generative AI

Henry Balani, global head of industry and regulatory affairs at Encompass Corporation, said: “Generative AI, in particular, has a huge role to play across the financial services industry, improving the accuracy and speed of detection of financial crime by analysing large data sets, for example.

“Mitigating the risks of AI, through this collaboration agreement with the US, is a key step towards mitigating risks of financial crime, fostering collaboration and supporting innovation in a crucial, advancing area of technology.

“Generative AI is here to augment the work of staff across the financial services sector, and particularly KYC analysts, by streamlining processes and combing through vast data sets quickly and accurately. But for this to be truly effective, banks and financial institutions need to first put in place robust digital and automated processes to optimise data quality and deliver deeper customer insights, which can help to fuel the use of generative AI.”

Perttu Nihti, chief product officer of Basware, also discussed the importance of AI: “AI can significantly bolster the accuracy of fraud detection through sophisticated algorithms that analyse vast amounts of data to detect outliers and suspicious activity indicative of fraudulent behaviour. Not only that, but AI algorithms can be trained to minimise and reduce false positives which limits the number of legitimate transactions that are mistakenly flagged as fraudulent.

“As CFOs battle against the rising tide of fraud, implementing AI and ML solutions through partner organisations is a good way to share the compliance burden. The CFO is ultimately responsible, but having a trusted partner who can stay on top of evolving mandates and regulations, as well as reduce the risk of fraud through technology can help share the load.”

TD Bank Group (TD) and Plaid have inked a North American data-access agreement aimed at enhancing financial data connectivity for TD customers in Canada and the US.

This partnership empowers TD customers to securely link and share their financial data with Plaid’s data network, comprising over 8,000 apps and services.

TD customers have the capability to access a wide array of applications and services within Plaid’s network through application programming interfaces (APIs). The adoption of APIs promises to deliver heightened data security and privacy for TD customers, eliminating the need to share sensitive login credentials with third-party providers.

Franklin Garrigues, VP, external Ecosystems at TD Bank, outlined the significance of this data-access agreement, stating: “Our data-access agreement with Plaid is another pivotal step in developing a more secure, reliable and innovative digital experience for our customers.

“We know our customers are looking to access new types of services that meet their unique financial needs. This agreement will enable our customers who choose to access the applications and services on Plaid’s network to do so with more ease, value and security.”

While Cecilia Frew, head of open finance at Plaid, echoed the commitment to secure data access, saying: “We’re proud to work alongside TD to provide customers with safe and reliable access to their financial data.

“Today 84 per cent of consumers say they’re better off as a result of being able to manage their financial lives online. Our relationship with TD will give millions of customers the tools to securely connect to the thousands of digital financial applications in Plaid’s network and comfortably manage their everyday finances.”

This data-access agreement with Plaid is part of TD’s ongoing efforts to provide a secure, transparent as well as user-friendly digital experience, enabling customers to have greater control over sharing their financial data.

Notable initiatives include:

1. Joining the Financial Data Exchange (FDX) in 2018 to promote solutions that enhance customer data protection and support API-based technology protocols. In 2023, TD expanded its role in FDX with the election of Franklin Garrigues as its Fi co-chair.
2. Entering into a data access agreement with Mastercard’s US open banking arm, Finicity, in 2020, setting the foundation for customer-authorised data sharing using APIs.
3. Joining the Akoya Data Access Network in 2021, enabling US-based customers to securely share data with fintechs and aggregators without the need to divulge login credentials to third parties.
4. Forging a North American data access agreement with Envestnet | Yodlee in 2021, enabling customers to connect their TD accounts to popular financial management, payments, wealth as well as small business applications.

The bakong, a digital currency operated by the National Bank of Cambodia (NBC), will provide users with access to the Alipay merchant network and enable cross-border transactions on Alipay+ using QR codes under a memorandum of understanding (MoU) signed at the FinTech Expo in Singapore, the local press reported.

The bakong service operates by the NBC on a blockchain, but it is not a central bank digital currency (CBDC), as the currency is a liability of the commercial banks that use it. The bakong enables both United States dollar and Cambodian riel accounts. The Cambodian economy is heavily dollarized.

The MoU means that Cambodians will be able to use riel from their bakong wallets to shop with 83 million merchants worldwide on the Alipay network. In addition, Chinese tourists who have accounts with China’s massive Alipay electronic payment system will be able to shop in Cambodia using the QR codes of the bakong KHQR system. NBC governor Chea Serey said:

“The simplicity of making payments provides merchants with a revenue boost, helping to stimulate economic activity. I’m confident this collaboration with Alipay+ will be beneficial for all parties.”

There were 35.4 million transactions worth $12 billion using the bakong in the first half of 2023, the Phnom Penh Post reported on Nov. 17.

Related: Lao CBDC proof-of-concept project to launch using system pioneered in Cambodia

The bakong payment was launched in 2020 and was designed for sending remittances an making purchases. Its mobile app was developed in collaboration with Japan’s Soramitsu blockchain. In August, Soramitsu announced plans to use the bakong to develop a cross-border payment system encompassing India, China and Japan. The bakong is already used in Malaysia, Thailand and Vietnam.

Local vendors can now use the KHQR network of the Bakong system, a part of the National Bank of Cambodia (NBC), to make payments to over 80 million Alipay merchants globally.https://t.co/hLagrXU08X

— The Phnom Penh Post (@phnompenhpost) November 17, 2023

In July, the NBC signed a MoU with China’s UnionPay International on the use of QR codes for cross-border payments.

Magazine: China’s 180M digital yuan airdrop, Devastation in Turkey, Laos’ CBDC: Asia Express