EBA Proposes Guidelines for Cooperation in AML/CFT Supervision
EBA launched a consultation on the guidelines that set out how prudential supervisors, anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors, and financial intelligence units should cooperate and exchange information in relation to AML/CFT, in line with provisions laid down in the Capital Requirements Directive (CRD). The guidelines put in place the practical modalities of cooperation and information exchange among these entities, both at the level of member states and across the Single Market in EU. This consultation runs until August 27, 2021.
The proposed guidelines are intended to establish a formal framework to ensure effective cooperation and information exchange and to identify synergies between the work of the different authorities and build on these synergies to foster a more effective approach to both, prudential and AML/CFT supervision; all this is expected to be done while avoiding unnecessary duplications and respecting the autonomy of the different authorities’ respective roles, tasks, and competencies. The proposed guidelines would facilitate and support the cooperation and information exchange throughout the supervisory life cycle covering authorizations of new institutions, ongoing supervision including the risk assessment, and, where relevant, the imposition of supervisory measures and sanctions, including the withdrawal of the authorization. In a cross‐border context, the cooperation can be carried out within prudential or AML/CFT colleges. Where such colleges exist, AML/CFT supervisors and prudential supervisors can use the college framework for the cooperation and information exchange as set out in these guidelines, where deemed appropriate in view of the nature of the cooperation and the type of information to be exchanged. The guidelines are designed so that they can be applied in a neutral way regardless of the institutional setting of the prudential supervisors, AML/CFT supervisors, or the financial intelligence unit in each member state.
The guidelines help authorities exchange information in a more effective way and bring clarity about which information to exchange with whom and at what stage. They leverage the supervisory experiences, the existing work of EBA in this area and international initiatives such as the BCBS guidelines for interaction and cooperation between prudential and AML/CFT supervisors. These guidelines complement the ESAs’ AML/CFT Colleges Guidelines, which were published in 2019 and form part of the wider work of EBA to strengthen the link between prudential and AML/CFT supervision. In terms of the forward-looking work, in accordance with Article 9a of Regulation (EU) No 1093/2010, EBA is in the process of establishing a central AML/CFT database. EBA is in the process of developing the regulatory technical standards that will specify the information that EBA will collect in this central database and how EBA will analyze this information and make it available to the relevant authorities, including prudential supervisors, and AML/CFT supervisors, for their supervisory activities with regard to the prevention of money laundering and terrorist financing. Once the database is established, the provisions set out in these guidelines will apply in conjunction with the legal requirements in the regulatory technical standards.
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Comment Due Date: August 27, 2021
Keywords: Europe, EU, Banking, AML/CFT, CRD, Financial Intelligence Units, Guidelines, ML/TF Risk, AML/CFT Colleges, EBA
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