Featured Product

    EBA Proposes Guidelines on Role of AML/CFT Compliance Officers

    August 02, 2021

    The European Banking Authority (EBA) proposed guidelines on the role, tasks, and responsibilities of anti-money laundering (AML) and countering the financing of terrorism (CFT) compliance officers and the management body. The draft guidelines address the AML and CFT governance setup at the EU level. The guidelines include provisions on the wider AML and CFT governance setup, including at the level of the group. Once adopted, the guidelines will apply to all financial-sector operators that are in the scope of the AML Directive. The feedback period on this proposal ends on November 02, 2021.

    The proposed guidance stipulates that the AML and CFT compliance officers need to have sufficient seniority, which entails the powers to propose all necessary or appropriate measures to ensure the compliance and effectiveness of the internal AML and CFT measures to the management body, in its supervisory and management function. The draft guidelines also specify the tasks and role of the member of the management board, or the senior manager where no management board exists. As information reaching the management body needs to be sufficiently comprehensive to enable informed decision-making, the draft guidelines set out the minimum information that should be included in the activity report of the AML and CFT compliance officer to the management body. Where a financial services operator is part of a group, the draft guidelines provide that a Group AML and CFT compliance officer in the parent company should be appointed to ensure the establishment and implementation of effective group-wide AML and CFT policies and procedures and to ensure that any shortcomings in the AML and CFT framework affecting the entire group or a large part of the group are addressed effectively.

    Through these guidelines, EBA intends to achieve a common understanding, by competent authorities and financial sector operators, of financial sector operators’ AML and CFT governance arrangements. A common understanding, which is applied consistently and enforced as necessary, will be key to strengthening the AML and CFT defenses in EU. Provisions in the draft guidelines are designed to be applied proportionately while considering the diversity of financial sector operators that are within the scope of the AML Directive. They are also in line with the existing guidelines from the European Supervisory Authorities (ESAs), which include the revised guidelines on internal governance under the Capital Requirements Directive (CRD); the revised Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body; the draft guidelines on the authorization of credit institutions; and the draft guidelines for common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. 


    Related Links

    Comment Due Date: November 02, 2021

    Keywords: Europe, EU, Banking, Securities, AML/CFT, Governance, AML Directive, ESAs, Compliance Risk, AMLD, Compliance Risk, EBA

    Related Articles

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699