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
Previous Article
FASB Issues Q&A on Hedge Accounting During COVID-19 PandemicRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
