EBA Responds to EC Action Plan on AML/CFT Framework in EU
EBA published its response to the action plan of EC for a comprehensive EU policy on preventing money laundering and terrorism financing (ML/TF). In this action plan, which was published in May 2020, EC set out its view of a future framework for anti-money laundering and countering the financing of terrorism (AML/CFT). Through this response, EBA provides technical points that policy-makers should consider when deciding on the scope and powers of an EU-level supervisor for AML/CFT. EBA is of the view that a comprehensive assessment of the existing AML/CFT framework in EU is necessary to ensure that EU and its component parts are equipped to tackle money laundering and terrorist financing more effectively and efficiently.
EBA recommendations to EC include the following:
- Harmonize the legal framework for AML/CFT in EU to reduce the risk of gaps created by divergent approaches to incorporating EU AML/CFT law into national law (EBA to provide more information on this in its response to the EC Call for Advice on September 0, 2020)
- Combine an ongoing role of national AML/CFT authorities with an EU-level AML/CFT supervisor in a hub-and-spoke approach that builds on national AML/CFT authorities’ expertise and resources, complementing this with effective EU-level oversight for a consistent approach with comparable outcomes
- Leverage on the existing AML/CFT infrastructure of EU, including the policy of EBA, data and information technology resources, and the European and international supervisory cooperation networks of EBA
EC action plan builds on six pillars, namely effective implementation of existing rules, a single EU rulebook, an EU-level supervision, a support and cooperation mechanism for financial intelligence units, better use of information to enforce criminal law, and a stronger EU in the world. EC intends to deliver on these actions by early 2021. EBA states that it stands ready to provide technical input and support EC in its implementation of this action plan. EBA will provide additional technical input through its forthcoming response to a separate Call for Advice of EC, in which EBA has been asked to define the scope of application and the enacting terms of a regulation to be adopted in the field of preventing money laundering and terrorist financing. EBA will respond to this Call for Advice by September 10, 2020.
Related Links
Keywords: Europe, EU, Banking, AML/CFT, Action plan, ML/TF Risk, Single Rulebook, Operational Risk, Basel, EC, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
EBA Updates Data for Identification of Global Systemic InstitutionsRelated Articles
HKMA Urges Early Action for Adherence to IBOR Fallbacks Protocol
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB Sets Out Roadmap for Transition to Alternative Reference Rates
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury Publishes Response to Proposal on BRRD2 Transposition
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury Publishes Response to Proposal on CRD5 Transposition
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
PRA Updates Supervisory Statement on Counterparty Credit Risk
PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.
FSB Publishes Update on Work to Address Market Fragmentation
FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.
EBA Proposes to Revise Guidelines on Incident Reporting Under PSD2
EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).
EBA Finalizes Standards for Prudential Treatment of Software Assets
EBA published the final draft regulatory technical standards specifying the methodology for prudential treatment of software assets by banks.
FSB Publishes Roadmap on Cross-Border Payments, Report on Stablecoins
FSB published a report presenting the roadmap to enhance cross-border payments by providing a high-level plan that sets ambitious but achievable goals and milestones in the five focus areas.
EIOPA Urges Insurers to Prepare for End of Brexit Transition
In a recent communication, EIOPA urged the insurance sector to complete its preparations for the end of the Brexit transition period on December 31, 2020.
