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
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.