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 Sets Out Roadmap for 2023, Updates Reporting Framework 3.2

    The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.

    September 30, 2022 WebPage Regulatory News

    FED Announces Launch of Climate Scenario Analysis Exercise in 2023

    The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.

    September 29, 2022 WebPage Regulatory News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    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).

    September 26, 2022 WebPage Regulatory News

    EBA Launches EU-Wide Transparency Exercise in 2022

    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.

    September 23, 2022 WebPage Regulatory News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    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."

    September 22, 2022 WebPage Regulatory News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    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.

    September 21, 2022 WebPage Regulatory News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    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.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    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).

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8523