EBA issued a call for input to understand the scale and drivers of "de-risking" by the financial institutions in EU and its impact on customers. To manage customer profiles associated with higher money laundering and terrorist financing risks, financial institutions may decide not to service a customer or a category of customers. This is referred to as de-risking and affects both financial institutions and its users. This call for input is a part of the EBA work to lead, coordinate, and monitor the anti-money laundering (AML) and combating financing of terrorism (CFT) efforts in the financial sector in EU. This call for input, which runs until September 11, 2020, is of interest to stakeholders across the financial sector.
De-risking affects particular sectors and customers across EU, such as banks engaged in correspondent banking relationships and payment institutions. A variety of institutions and customers are affected by de-risking and the exposure of member states to this phenomenon also varies. Therefore, EBA is reaching out to stakeholders across the financial sector and its users to hear from their experiences. Responses to this call for input will feed into the next opinion of EBA on the money laundering and terrorist financing risks in the financial sector and may also inform other policy outputs of EBA. This opinion, which EBA is mandated to issue under the EU Directive 2015/849, will be published in the first quarter of 2021.
Keywords: Europe, EU, Banking, AML/CFT, ML/TF, Call for Input, EBA
Next ArticleFCA Consults on Various Handbook Amendments
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
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.
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.
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.
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.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.