Featured Product

    EBA Issues Opinion on AML/CFT Concerns from Prudential Perspective

    July 24, 2019

    EBA published an opinion on the link between money laundering and terrorist financing (ML/TF) concerns and prudential objectives. This opinion forms part of the ongoing work of EBA to strengthen the fight against ML/TF in Europe and responds to a request in the Council Anti Money Laundering Action Plan of 2018. With this opinion, EBA invites prudential supervisors to send a common message to institutions that prudential supervisors factor anti-money laundering/countering the financing of terrorism (AML/CFT) issues into the prudential supervisory process and cooperate closely with AML/CFT supervisors for this purpose.

    ML/TF can have a significant, adverse impact on an institution's safety and soundness. This is why prudential supervisors need to be aware of, and act on, ML/TF risks, which may pose prudential risks to the institutions they supervise and in particular:

    • When considering whether to authorize an institution or when assessing proposed acquisitions of qualifying holdings
    • As part of their ongoing supervision of institutions, for example, when assessing the adequacy of the governance and risk management systems of an institution
    • When taking corrective measures to address potential weaknesses from a prudential perspective

    EU legislators have taken a number of steps to clarify and strengthen the important link between AML/CFT and prudential issues and to complement the existing legal framework in EU. These steps include amendments to the Capital Requirements Directive (CRD), which further clarify the link between prudential supervision and AML/CFT supervision and require prudential supervisors to act on AML/CFT information. The EU Council made clear in its action plan of 2018 that the link between ML/TF risk and prudential objectives means that prudential and AML/CFT supervisors must cooperate closely and share information in the discharge of their respective functions. Where institutions operate across borders, EBA expects supervisors to cooperate with their international counterparts.

     

    Related Links

    Keywords: Europe, EU, Banking, AML/CFT, ML/TF, SREP, AML Action Plan, CRD, Prudential Supervision, EBA

    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311