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 CRRRelated Articles
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
BoE Announces Changes to Validation Rules for Form BTL
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
BCBS Proposes Changes to Process for Reviewing G-SIB Methodology
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.
