ESAs published the joint guidelines on cooperation and information exchange between competent authorities, establishing colleges of anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors for the first time in EU. The guidelines are being issued to create a common framework that supervisors should use to support effective oversight of cross-border groups from an AML/CFT perspective and from a more general prudential perspective. AML/CFT colleges will be central to achieving this. These guidelines apply from January 10, 2020.
The guidelines require that in situations where a firm operates in more than three member states, supervisors establish an AML/CFT college. To this end, the guidelines laid down rules that govern the establishment and operation of the AML/CFT colleges. These colleges will bring together AML/CFT supervisors of the same firm as well as other relevant parties. This is to ensure that all supervisors have access to comprehensive information about the firm and use it to inform their risk assessment and supervisory approach. The colleges will also allow the supervisors to agree on a common approach, including coordinated actions. The guidelines also include provisions to structure supervisory cooperation in situations where the conditions for setting up an AML/CFT college are not met.
The joint guidelines have been prepared in accordance with Articles 50a, 57a and 57b of the Fourth EU Anti-Money Laundering Directive (EU Directive 2015/849), which provides legal basis for cooperation and information exchange between AML/CFT and prudential supervisors in EU and with authorities in third countries. The guidelines are broadly based on, and consistent with, the framework of colleges of prudential supervisors of banks, but the scope of these guidelines is much wider and encompass all financial sectors in a proportionate manner.
Keywords: Europe, EU, Banking, Insurance, Securities, Cooperation Arrangement, Information Exchange, AML/CFT, AML/CFT Directive, AML/CFT Colleges, ESAs
Previous ArticleEBA Publishes 2020 Stress Test Templates After Testing with Banks
Next ArticleFHFA Proposes to Amend Stress Testing Rule
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.