EC Proposes to Reinforce Role of EBA in AML Supervision
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
Related Links
Keywords: Europe, EU, Banking, Insurance, AML, AML Supervision, EBA, EC
Previous Article
FED Publishes Notice on Temporary Approval of Revisions to FR 2052aRelated Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
EBA Updates Lists of Entities for Use in Capital Calculations under SA
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
