European regulators published various regulatory updates relevant for the financial sector. The European Commission (EC) published two delegated regulations supplementing the Benchmark Regulation (2016/1011) and the European Central Bank (ECB) published opinions on proposals related to money laundering and terrorist financing (AML/CFT) while the European Council approved conclusions on developing the cyber posture in European Union.
Below are the details of afore-mentioned developments:
- EC published the Delegated Regulation 2022/804 on rules of procedure in infringement proceedings with regard to fines, periodic penalty payments and supervisory measures applicable to the supervision by the European Securities Markets Authority of certain benchmark administrators. The regulation shall enter into force and be applicable on the third day following that of its publication in the Official Journal of the European Union.
- EC published the Delegated Regulation 2022/805 on fees including recognition fees, authorization fees, and annual supervisory fees applicable to the supervision by the European Securities Markets Authority of certain benchmark administrators. The regulation shall enter into force and be applicable on the third day following that of its publication in the Official Journal of the European Union.
- ECB published an opinion CON/2022/4 on a proposal for a regulation establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLAR). In its opinion, ECB expresses support for AMLAR and recommends amendments to the proposed regulation. Looking forward, subject to the Commission’s future reviews envisaged under AMLAR, ECB would welcome an increase in the scope of AMLA’s direct supervisory tasks to cover a wider subset of entities that are directly supervised by ECB. This could have the potential to achieve a higher level of consistency in the AML/CFT supervisory assessments of such institutions and, therefore, also help to further support the prudential supervision for which some of those assessments serve as inputs.
- ECB published an opinion CON/2022/5 on a proposal for a directive and a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. In its opinion, ECB outlines its observations with respect to the definitions of obliged entities and crypto-assets, prudential supervisory aspects, and risk factors for customer due diligence, among others.
- The European Council approved conclusions on the development of the European Union's cyber posture. The posture aims to provide immediate and long-term responses to threat actors seeking to deny the European Union a secure and open access to cyberspace and affect its strategic interests, including the security of its partners. The Council highlights five functions of the European Union in the cyber domain: strengthen resilience and capacities to protect; enhance solidarity and comprehensive crisis management; promote the European Union’s vision of cyberspace; enhance cooperation with partner countries; and international organizations; and prevent, defend against, and respond to cyber-attacks. Ministers, among other things, call upon the Commission to propose common cybersecurity requirements for connected devices and associated processes and services, invites relevant authorities such as the EU’s Agency for Cybersecurity (ENISA) to formulate recommendations to reinforce the resilience of communications networks and infrastructure, and stresses the importance of establishing regular cyber exercises to test and develop the internal and external response to large-scale cyber incidents. The Council will take stock of the progress made on the implementation of these conclusions in 2023 and ensure further development of the European Union’s cyber posture.
- EC Regulation 2022/804
- EC Regulation 2022/805
- ECB Opinion on Establishing Authority for AML/CFT
- ECB Opinion on Prevention of Use of Financial System for AML/CFT
- European Council on Cyber Posture
Keywords: Europe, EU, Banking, Benchmark Administrator, AML CFT, Cyber Risk, Regtech, Cyber Testing, Cyber Incident Coordination, Benchmark Reforms, Benchmark Regulation, Cyber Incident Reporting, ECB, EC, European Council
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