ESAs Published AML/CFT Guidelines and Central Contact Point Standards
ESAs published the final guidelines on anti-money laundering and countering the financing of terrorism (AML/CFT). They also published the draft regulatory technical standards set out the criteria member states must consider when deciding whether foreign payment service providers and electronic money issuers should appoint a Central Contact Point to support the fight against money laundering and terrorist financing (ML/TF); they also list the functions this Central Contact Point will have to have to discharge its role effectively.
The guidelines on AML/CFT promote a common understanding of the risk-based approach to AML/CFT and set out how this approach should be applied. They provide guidance on the factors that credit and financial institutions should consider when assessing the ML/TF risk associated with a business relationships and occasional transactions. In addition, they set out how credit and financial institutions can adjust the extent of their customer due diligence measures to mitigate the ML/TF risk they have identified. These guidelines are part of the ESAs wider work on fostering a consistent and effective approach to AML/CFT by credit and financial institutions as well as AML/CFT supervisors. ESAs will keep these guidelines under review and update them as appropriate. A first update is foreseen once amendments to the Money Laundering Directive (EU 2015/849) have been agreed. The guidelines will apply by June 26, 2018.
Related Links
Central Contact Point Standards (PDF)
Keywords: ESA, Europe, AML/CFT, RTS, Banking
Related Articles
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.
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.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards