EC proposed a regulation related to the prevention of the use of the financial system for the purposes of money-laundering or terrorist financing. This is part of an overall strategy to strengthen the EU framework for prudential and AML supervision for financial institutions, which the EC is setting out in its Communication. The proposal will be discussed by the European Parliament and Council. EC also published questions and answers (Q&As) related to the proposal.
EC is proposing to concentrate AML powers in relation to the financial sector within the EBA and to strengthen its mandate to ensure that risks of money-laundering are effectively and consistently supervised by all relevant authorities and that the relevant authorities cooperate and share information. These measures will contribute to promoting the integrity of the financial system in EU, ensuring financial stability and protection from financial crime. The amended regulation will:
- Ensure that breaches of AML rules are consistently investigated
- Provide that the national AML supervisors comply with EU rules and cooperate properly with prudential supervisors
- Enhance the quality of supervision through common standards, periodic reviews of national supervisory authorities, and risk assessments
- Enable the collection of information on AML risks and trends and foster exchange of such information between national supervisory authorities
- Facilitate cooperation with non-EU countries on cross-border cases
- Establish a new permanent committee that brings together national AML supervisory authorities.
EC is also presenting a strategy to improve information exchange and cooperation between prudential and AML authorities. It invites ESAs, and in particular EBA, to adopt guidance supporting prudential supervisors in integrating AML aspects into their various tools and ensuring supervisory convergence. EC also invites ECB to conclude with AML supervisors a multilateral memorandum of understanding on exchange of information by January 10, 2019—as required by the fifth AML Directive. The proposed regulation will amend several regulations, including the following:
- Regulation (EU) No 1093/2010 establishing EBA; Regulation (EU) No 1094/2010 establishing EIOPA; and Regulation (EU) No 1095/2010 establishing ESMA
- Regulation (EU) No 345/2013 on European venture capital funds
- Regulation (EU) No 346/2013 on European social entrepreneurship funds
- Regulation (EU) No 600/2014 on markets in financial instruments
- Regulation (EU) 2015/760 on European long-term investment funds
- Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds
- Regulation (EU) 2017/1129 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market
- (EU) Directive 2015/849 on the prevention of the use of the financial system for the purposes of money-laundering or terrorist financing
Keywords: Europe, EU, Banking, Insurance, AML, AML Supervision, EBA, EC
Previous ArticleFED Publishes Notice on Temporary Approval of Revisions to FR 2052a
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.