EBA Requests Inputs in Relation to Mitigation of AML Risks at Banks
EBA issued a call for input to understand the scale and drivers of "de-risking" by the financial institutions in EU and its impact on customers. To manage customer profiles associated with higher money laundering and terrorist financing risks, financial institutions may decide not to service a customer or a category of customers. This is referred to as de-risking and affects both financial institutions and its users. This call for input is a part of the EBA work to lead, coordinate, and monitor the anti-money laundering (AML) and combating financing of terrorism (CFT) efforts in the financial sector in EU. This call for input, which runs until September 11, 2020, is of interest to stakeholders across the financial sector.
De-risking affects particular sectors and customers across EU, such as banks engaged in correspondent banking relationships and payment institutions. A variety of institutions and customers are affected by de-risking and the exposure of member states to this phenomenon also varies. Therefore, EBA is reaching out to stakeholders across the financial sector and its users to hear from their experiences. Responses to this call for input will feed into the next opinion of EBA on the money laundering and terrorist financing risks in the financial sector and may also inform other policy outputs of EBA. This opinion, which EBA is mandated to issue under the EU Directive 2015/849, will be published in the first quarter of 2021.
Related Links
Keywords: Europe, EU, Banking, AML/CFT, ML/TF, Call for Input, EBA
Next Article
EIOPA Publishes Annual Report for 2019Related Articles
ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs Launch Survey on Templates for Product Disclosures Under SFDR
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA Provides Opinion on Definition of Credit Institution in CRR
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA Consults on Alignment of Daily Liquidity Report for Banks
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED Releases Scenarios for Second Round of Stress Tests on Banks
FED released hypothetical scenarios for a second round of stress tests for banks.
FED to Temporarily Revise FR Y-14 Reports to Conduct Stressed Analysis
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED Revises Information Collection Under Market Risk Capital Rule
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA Seeks Input on ESG Disclosure Practices of Banks
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.
