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.
Comment Due Date: November 02, 2021
Keywords: Europe, EU, Banking, Securities, AML/CFT, Governance, AML Directive, ESAs, Compliance Risk, AMLD, Compliance Risk, EBA
Previous ArticleAMF Publishes Annual Statement of Priorities for 2022-2023
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.