Featured Product

    EBA Lists Entities for Benchmarking Exercise, Reviews AML Supervision

    March 23, 2022

    The European Banking Authority (EBA) reviewed the competent authorities' approaches to the anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of banks and updated the list of institutions with reporting obligation for the supervisory benchmarking exercise in 2022.

    The updated list for the 2022 benchmarking exercise includes 115 banks from 16 countries across the European Union and the European Economic Area. The benchmarking exercise assists competent authorities in assessing the quality of internal approaches used to calculate risk-weighted exposure amounts.  The exercise covers approved internal approaches used for own funds requirements calculation of credit and market risk as well as internal models used for IFRS 9. The exercise is an essential supervisory tool to enhance the quality of internal models, which is particularly important in a stressed economic situation. EBA runs this exercise leveraging on established data collection procedures and formats of regular supervisory reporting.

    The report on supervisory approaches for AML/CFT reviews how competent authorities in this year’s sample apply the risk-based approach set out in international standards. The EBA findings show that most competent authorities in this year’s sample were committed to strengthening their approach to AML/CFT supervision. Several competent authorities took steps to put in place a holistic approach to tackle money laundering and terrorist financing (ML/TF) risks in the banking sector. Furthermore, AML/CFT teams in almost all EBA-reviewed competent authorities grew significantly and are set to expand further. Moreover, cooperation with prudential supervisors and other AML/CFT supervisors in European Union has become a clear priority for all, in line with the regulatory framework of EBA. The review found that cooperation with the Financial Intelligence Units (FIUs) was not always systematic and continued to be largely ineffective. The report also highlights the common challenges and difficulties in:

    • identifying ML/TF risks in the banking sector and in individual banks
    • translating ML/TF risk assessments into risk-based supervisory strategies
    • using available resources effectively, including by ensuring sufficiently intrusive onsite and offsite supervision
    • taking proportionate and sufficiently dissuasive enforcement measures to correct AML/CFT compliance weaknesses


    Related Links


    Keywords: Europe, EU, Banking, IFRS 9, Basel, Regulatory Capital, AML CFT, ML TF Risk, Benchmarking Exercise, Reporting, Internal Models, Credit Risk, Market Risk, CRD, EBA, Subheadline

    Featured Experts
    Related Articles

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    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.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    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.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    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.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    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.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    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.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    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.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699