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
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.