EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU. EBA has been mandated to establish and keep up-to-date a central database with information on AML/CFT weaknesses that the competent authorities have identified for individual financial institutions; the database will also contain information on the measures taken to rectify those material AML/CFT weaknesses. The database will be a key tool for EBA to lead, coordinate, and monitor the AML/CFT efforts in EU. The comment period for the proposed standards ends on June 17, 2021.
The draft regulatory standards proposed by EBA specify the definition and materiality of weaknesses, the type of information collected, the practical implementation of information collection, and the analysis and dissemination of information in the database. Annex to the proposal sets out technical specifications and data points that will be included in the database, along with the list of authorities that will be indirectly submitting information to the AML/CFT database. In the proposal, EBA also sets out rules to ensure the confidentiality of data and the efficiency of the database and has performed and published a summary of the associated Data Protection Impact Assessment. To avoid duplication of reporting, the draft technical standards clarify how reporting obligations under these technical standards interact with other notifications and specify the timelines for reporting. Information from this database will be used by individual competent authorities and EBA to make the fight against money laundering and terrorist financing in EU more targeted and effective in the future. The AML/CFT central database will serve as an early warning tool to enable the competent authorities to act before the money laundering and terrorist financing risks crystalize. As these technical specifications are not part of the draft regulatory standards, EBA is not required to consult on them but has decided to offer the respondents the possibility to provide comments on these also.
Comment Due Date: June 17, 2021
Keywords: Europe, EU, Banking, AML/CFT, Regulatory Technical Standards, AML/CFT Database, ML/TF Risk, EBA
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