ESAs Publish Guidelines to Establish Colleges of AML/CFT Supervisors
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.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, Cooperation Arrangement, Information Exchange, AML/CFT, AML/CFT Directive, AML/CFT Colleges, ESAs
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.