ESAs published the joint guidelines on cooperation and information exchange between competent authorities, establishing colleges of anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors for the first time in EU. The guidelines are being issued to create a common framework that supervisors should use to support effective oversight of cross-border groups from an AML/CFT perspective and from a more general prudential perspective. AML/CFT colleges will be central to achieving this. These guidelines apply from January 10, 2020.
The guidelines require that in situations where a firm operates in more than three member states, supervisors establish an AML/CFT college. To this end, the guidelines laid down rules that govern the establishment and operation of the AML/CFT colleges. These colleges will bring together AML/CFT supervisors of the same firm as well as other relevant parties. This is to ensure that all supervisors have access to comprehensive information about the firm and use it to inform their risk assessment and supervisory approach. The colleges will also allow the supervisors to agree on a common approach, including coordinated actions. The guidelines also include provisions to structure supervisory cooperation in situations where the conditions for setting up an AML/CFT college are not met.
The joint guidelines have been prepared in accordance with Articles 50a, 57a and 57b of the Fourth EU Anti-Money Laundering Directive (EU Directive 2015/849), which provides legal basis for cooperation and information exchange between AML/CFT and prudential supervisors in EU and with authorities in third countries. The guidelines are broadly based on, and consistent with, the framework of colleges of prudential supervisors of banks, but the scope of these guidelines is much wider and encompass all financial sectors in a proportionate manner.
Keywords: Europe, EU, Banking, Insurance, Securities, Cooperation Arrangement, Information Exchange, AML/CFT, AML/CFT Directive, AML/CFT Colleges, ESAs
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