BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT). The revisions provide detailed guidelines to strengthen the interaction and cooperation between prudential and anti-money laundering and combating the financing of terrorism (AML/CFT) supervisors for banks. The revisions set out principles and recommendations for information exchange and cooperation in relation to authorization-related procedures of a bank.
The revised guidelines include new paragraph 96 in Part IV on "The role of supervisors" and Annex 5 on "Interaction and cooperation between prudential and AML/CFT supervisors." Annex 5 sets out specific principles, recommendations, and descriptive examples to facilitate effective and efficient cooperation. It presents possible methods of implementation, including mechanisms to facilitate cooperation at the jurisdictional and international levels. The outlined supervisory practices (in boxes) highlight a range of practices, including supervisory features specific to only certain jurisdictions. The guidelines also cover processes of information exchange, relationships with third parties (such as financial intelligence units), and issues related to confidentiality and data protection. The guidelines are intended to enhance the effectiveness of supervision of ML/FT risk management by banks, consistent with, and complementary to, the goals and objectives of the standards issued by the Financial Action Task Force (FATF) and principles and guidelines published by BCBS. The guidelines are not included in the Basel standards and are only applicable for the jurisdictions that choose to implement them on a voluntarily basis.
Keywords: International, Banking, Prudential Supervision, AML/CFT, ML/TF Risk, FATF, BCBS
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