BCBS Consults on Guidelines on Prudential and AML/CFT Supervision
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.
Related Links
Comment Due Date: February 06, 2020
Keywords: International, Banking, Prudential Supervision, AML/CFT Supervision, ML/TF Risk, FATF, Guidelines, BCBS
Previous Article
BaFin Circular on Specifying High-Risk Exposures Under CRRNext Article
BIS Paper Examines Shadow Banking System in ChinaRelated Articles
EBA Updates List of Validation Rules for Reporting by Banks
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS Advocates Environmental Risk Analysis for Financial Sector
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS Issues Guidelines to Promote Senior Management Accountability
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB Updates List of Supervised Entities in EU in September 2020
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management
OSFI published the key findings of a study on third-party risk management.
FSB Extends Implementation Timeline for Framework on SFTs
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.
