Encrypted Collaboration in Financial Crime Detection, co-hosted with the LHoFT on 29 September, marks the start of DESILO’s effort to validate privacy-preserving infrastructure with CSSF-supervised banks before the AMLR applies in July 2027
LUXEMBOURG, Aug. 20, 2026 /PRNewswire/ — DESILO, a deep-tech company developing privacy-preserving AI using fully homomorphic encryption (FHE), has established DESILO EUROPE S.à r.l. in Luxembourg. The new entity will focus on enabling banks to detect cross-institutional fraud without exposing the underlying data, with the aim of validating the approach before the AMLR’s information-sharing provisions apply in July 2027. Its first public initiative in Europe is Encrypted Collaboration in Financial Crime Detection, an event co-hosted with the Luxembourg House of Financial Technology (LHoFT) on Tuesday 29 September 2026.
The launch is timed against a clear regulatory deadline. Article 75 of the EU Anti-Money Laundering Regulation (AMLR) applies from 10 July 2027 and establishes, for the first time, a legal basis for Partnerships for Information Sharing (PfIS) between financial institutions. DESILO EUROPE aims to help banks supervised by Luxembourg’s CSSF test the required technology and governance model before the rules apply, rather than after.
The pressure behind PfIS is visible in the numbers. Reported payment fraud across the European Economic Area totalled €4.2 billion in 2024, up 17% in a single year, according to a joint report published by the European Central Bank and the European Banking Authority in December 2025. The report also found that net losses, after recovered funds, rose even faster, by 23%.
A growing share of these schemes are designed to span several institutions. In authorised push payment (APP) fraud, victims are manipulated into authorising transfers themselves; the funds may then pass through mule accounts across multiple banks before being converted into crypto-assets or other forms of value. Telecom operators, banks, payment providers and exchanges may each hold only one part of the trail, leaving the activity at any single institution looking unremarkable in isolation. Detecting such schemes requires signals to be connected across institutions. Article 75 provides a legal route for that collaboration.
A legal framework, however, does not by itself make collaboration operational. What remains missing is infrastructure that supports GDPR-compliant collaboration while minimising exposure. HOLMES, the system DESILO is bringing to the European market, treats this as a mathematical problem rather than a contractual one. Its protections are built into the architecture, rather than left to policy alone. With FHE, HOLMES can detect fraud candidates across institutions while the underlying source data remains with the institution that holds it. Signals are combined and scored in encrypted form, with the results returned the same way. At no point can the aggregation server decrypt any participating institution’s data.
“DESILO was built on one conviction: Privacy by Design,” said Howard Park, Managing Director of DESILO EUROPE. “The value of data grows when institutions can use it together, but so does the risk of exposure. Privacy therefore cannot depend on organisational policies and access controls alone; it has to be built into the infrastructure itself.”
For DESILO EUROPE, that principle translates into cross-institutional fraud detection in which the underlying source data remains with the institution that holds it and is never exposed.
“Our immediate priority is to bring that capability to the European market through a pilot with a CSSF-supervised retail bank,” Park said. “The pilot will validate not only the technology, but also the governance model needed before Article 75 applies. The September event is where we begin that conversation.”
“As a key financial center, Luxembourg needs the best AI technology to fight fraud and financial crime. Therefore we are super excited to welcome DESILO at the LHoFT and help them provide their technology to the financial industry. Beyond the state of the art tech, the DESILO’s team is bringing extremely valuable experience and expertise, that will be shared during the conference on September 29th” said Alex Panican, Acting CEO of LHoFT.
Beyond Silos #1: Fighting Fraud Together – What AMLR Article 75 Changes for Luxembourg’s Financial Sector – takes place on Tuesday, 29 September 2026, at the LHoFT in Luxembourg. The programme will examine the regulatory roadmap for AMLR Article 75, lessons from the United Kingdom and other information-sharing models, and the legal, governance and technical conditions required to make cross-institutional collaboration work in practice. The event is intended for financial institutions, regulators and financial crime specialists. Registration is open at https://luma.com/c70k6f4v.
About DESILO
DESILO is a deep-tech company specialising in fully homomorphic encryption and privacy-preserving machine learning. Founded in 2020 and headquartered in Seoul, the company enables organisations to analyse and combine sensitive data while keeping the underlying information encrypted throughout computation. DESILO EUROPE S.à r.l., based in Luxembourg, leads the company’s European operations. More at luxdesilo.ai.
About the LHoFT
The LHoFT Foundation is a public – private sector initiative that drives technology innovation for Luxembourg’s financial services industry, connecting the domestic and international Fintech community to develop solutions that shape the world of tomorrow. We host and support Luxembourg’s Fintech ecosystem, including local and international companies. We partner with multiple large corporations in financial services and technology to help ensure their future competitiveness, and enable access to talent and resources. We also enable investors, government agencies, financial services / fintech associations and hubs across the world to fulfil their Fintech ambitions and connect with each other. More information at www.lhoft.com
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