Featured Product

    EBA Proposes Guidelines on Role of AML/CFT Compliance Officers

    August 02, 2021

    The European Banking Authority (EBA) proposed guidelines on the role, tasks, and responsibilities of anti-money laundering (AML) and countering the financing of terrorism (CFT) compliance officers and the management body. The draft guidelines address the AML and CFT governance setup at the EU level. The guidelines include provisions on the wider AML and CFT governance setup, including at the level of the group. Once adopted, the guidelines will apply to all financial-sector operators that are in the scope of the AML Directive. The feedback period on this proposal ends on November 02, 2021.

    The proposed guidance stipulates that the AML and CFT compliance officers need to have sufficient seniority, which entails the powers to propose all necessary or appropriate measures to ensure the compliance and effectiveness of the internal AML and CFT measures to the management body, in its supervisory and management function. The draft guidelines also specify the tasks and role of the member of the management board, or the senior manager where no management board exists. As information reaching the management body needs to be sufficiently comprehensive to enable informed decision-making, the draft guidelines set out the minimum information that should be included in the activity report of the AML and CFT compliance officer to the management body. Where a financial services operator is part of a group, the draft guidelines provide that a Group AML and CFT compliance officer in the parent company should be appointed to ensure the establishment and implementation of effective group-wide AML and CFT policies and procedures and to ensure that any shortcomings in the AML and CFT framework affecting the entire group or a large part of the group are addressed effectively.

    Through these guidelines, EBA intends to achieve a common understanding, by competent authorities and financial sector operators, of financial sector operators’ AML and CFT governance arrangements. A common understanding, which is applied consistently and enforced as necessary, will be key to strengthening the AML and CFT defenses in EU. Provisions in the draft guidelines are designed to be applied proportionately while considering the diversity of financial sector operators that are within the scope of the AML Directive. They are also in line with the existing guidelines from the European Supervisory Authorities (ESAs), which include the revised guidelines on internal governance under the Capital Requirements Directive (CRD); the revised Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body; the draft guidelines on the authorization of credit institutions; and the draft guidelines for common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. 


    Related Links

    Comment Due Date: November 02, 2021

    Keywords: Europe, EU, Banking, Securities, AML/CFT, Governance, AML Directive, ESAs, Compliance Risk, AMLD, Compliance Risk, EBA

    Related Articles

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267