BCBS is proposing to amend guidelines on the sound management of risks related to money laundering and financing of terrorism (ML/FT). The guidelines to be amended were published in June 2017. The proposed changes provide detailed and practical guidelines on the interaction and cooperation between prudential and anti-money laundering and combating the financing of terrorism (AML/CFT) supervision. The comment period on this consultation ends on February 06, 2020.
The proposed guidelines set out principles and recommendations for information exchange and cooperation in relation to the authorization related procedures of a bank, to the ongoing supervision, and to the enforcement actions. The proposed changes include a new provision in "The role of supervisors" section that recommends establishing an effective cooperative system and a supplementing annex with specific recommendations and descriptive examples to facilitate supervisory cooperation. The guidelines present possible methods of implementation, including mechanisms to facilitate such cooperation, with a range of descriptive examples and supervisory practices. When supervisors are not part of the same supervisory authority, a bilateral or multilateral memorandum of understanding, prudential supervisory colleges, and AML/CFT supervisory colleges are presented as examples of such mechanisms.
The proposed guidelines also cover processes of information exchange, relationships with third parties (such as financial intelligence units), and issues related to confidentiality and data protection. A number of examples of potential information types or cooperation processes are included to provide concrete insights for implementing the recommendations. Additionally, a range of supervisory practices, some of which may not be applicable to all jurisdictions, are presented whenever deemed useful. The proposed guidelines are intended to enhance the effectiveness of supervision of ML/FT risk management by banks, consistent with and complementary to the goals and objectives of the standards of the Financial Action Task Force (FATF) and the principles and guidelines of BCBS.
Comment Due Date: February 06, 2020
Keywords: International, Banking, Prudential Supervision, AML/CFT Supervision, ML/TF Risk, FATF, Guidelines, BCBS
Previous ArticleBaFin Circular on Specifying High-Risk Exposures Under CRR
Next ArticleBIS Paper Examines Shadow Banking System in China
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).