Featured Product

    EBA Issues Report on Functioning of AML/CFT Supervisory Colleges in EU

    September 01, 2022

    The European Banking Authority (EBA) published its second report on the functioning of anti-money laundering and counter-terrorist financing (AML/CFT) supervisory colleges in the European Union. The European Central Bank (ECB) has tasked five high-level experts on banking supervision with reviewing the effectiveness and efficiency of the Supervisory Review and Evaluation Process (SREP) and how it relates to other supervisory processes.

    Report on AML/CFT supervisory colleges

    In the report, EBA sets out its observations of good practices with an aim to help competent authorities to enhance their effectiveness in future. These include well-structured and organized college meetings by lead supervisors, pro-active participation and sharing of comprehensive information by some members and an effective involvement of prudential supervisors in some colleges. The report also highlights areas for improvement. In particular, it points out that, due to their immaturity, AML/CFT colleges are not yet fully embedded in supervisory processes. The report reminds the supervisors of the importance to exchange information in colleges on an ongoing basis and without delay, particularly where material weaknesses in the institution’s AML/CFT framework have been identified. To further improve the functioning of AML/CFT colleges going forward, EBA staff propose that the lead supervisors and other college members take the following six actions, based on best practices observed in AML/CFT colleges so far:

    • Finalize the structural elements of AML/CFT colleges, including the Cooperation Agreement and Terms of Participation of observers
    • Enhance discussions during the AML/CFT college meetings
    • Foster the ongoing exchange of information within colleges
    • Apply risk-based approach to college meetings
    • Take steps to identify areas for common approach or joint actions
    • Enhance supervisory convergence in AML/CFT colleges

    Expert advisory group

    The five experts appointed by ECB have international backgrounds in banking supervision and were selected based on their extensive experience in the public and private sector and with a view to achieving geographical and gender diversity. They will be acting independently and subject to a confidentiality agreement. They have been appointed in a personal capacity and their participation in the group is unremunerated. The group will engage with major relevant stakeholders and other international experts to gather information and perspectives on supervisory best practices. Its mandate runs until the end of the first quarter of 2023. The following are the members of the expert advisory group:

    • Sarah Dahlgren, Partner, McKinsey & Company; former Executive Vice President, Federal Reserve Bank of New York
    • Matthew Elderfield, former Deputy Governor, Central Bank of Ireland; former Chief Risk Officer, Nordea
    • Ryozo Himino, former Commissioner, Japan’s Financial Services Agency (JFSA); former Secretary General of the Basel Committee on Banking Supervision
    • Fernando Restoy, Chair of the Financial Stability Institute, Bank for International Settlements; former Deputy Governor, Banco de España
    • Carolyn Rogers, Senior Deputy Governor, Bank of Canada; former Secretary General of the Basel Committee on Banking Supervision

     

    Related Links

     

    Keywords: Europe, EU, Banking, AML CFT, Supervisory Colleges, SREP, Operational Risk, Regtech, Basel, EBA, ECB

    Featured Experts
    Related Articles
    News

    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.

    February 23, 2024 WebPage Regulatory News
    News

    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.

    February 23, 2024 WebPage Regulatory News
    News

    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.

    January 25, 2024 WebPage Regulatory News
    News

    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.

    January 24, 2024 WebPage Regulatory News
    News

    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.

    January 24, 2024 WebPage Regulatory News
    News

    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

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8949