EBA Proposed Regulatory Standards for Central Database on AML/CFT
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU. EBA has been mandated to establish and keep up-to-date a central database with information on AML/CFT weaknesses that the competent authorities have identified for individual financial institutions; the database will also contain information on the measures taken to rectify those material AML/CFT weaknesses. The database will be a key tool for EBA to lead, coordinate, and monitor the AML/CFT efforts in EU. The comment period for the proposed standards ends on June 17, 2021.
The draft regulatory standards proposed by EBA specify the definition and materiality of weaknesses, the type of information collected, the practical implementation of information collection, and the analysis and dissemination of information in the database. Annex to the proposal sets out technical specifications and data points that will be included in the database, along with the list of authorities that will be indirectly submitting information to the AML/CFT database. In the proposal, EBA also sets out rules to ensure the confidentiality of data and the efficiency of the database and has performed and published a summary of the associated Data Protection Impact Assessment. To avoid duplication of reporting, the draft technical standards clarify how reporting obligations under these technical standards interact with other notifications and specify the timelines for reporting. Information from this database will be used by individual competent authorities and EBA to make the fight against money laundering and terrorist financing in EU more targeted and effective in the future. The AML/CFT central database will serve as an early warning tool to enable the competent authorities to act before the money laundering and terrorist financing risks crystalize. As these technical specifications are not part of the draft regulatory standards, EBA is not required to consult on them but has decided to offer the respondents the possibility to provide comments on these also.
Related Links
Comment Due Date: June 17, 2021
Keywords: Europe, EU, Banking, AML/CFT, Regulatory Technical Standards, AML/CFT Database, ML/TF Risk, EBA
Previous Article
BIS Announces TechSprint on Innovative Green Finance SolutionsRelated Articles
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.
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.
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.
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.
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.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
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.