Featured Product

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    September 10, 2020

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT). EC had issued this call for advice to EBA, on March 03, 2020, with the aim to define the scope of application and the enacting terms of a regulation to be adopted for preventing money laundering and terrorist financing. In its response, EBA sets out ways to strengthen the legal framework on AML/CFT and recommends that EC should establish a Single Rulebook, with a robust set of common rules supporting the implementation of a proportionate and effective risk‐based AML/CFT regime.

    The following are the key highlights of the EBA recommendations to EC:

    • Harmonize the EU legal framework in a directly applicable regulation where evidence suggests that divergence of national rules and practices has had a significant, adverse impact on the prevention of the use of the financial system in EU for money laundering and terrorist financing purposes
    • Strengthen aspects of the current AML/CFT Directive where existing provisions are insufficiently robust or specific—for example, in relation to supervisory powers of competent authorities in this area
    • Review scope of the EU AML/CFT legislation to ensure that the list of obliged entities is sufficiently comprehensive and well‐defined and is in line with the international AML/CFT standards; examples of sectors that are not included or whose status under the current AML/CFT directive is unclear include virtual asset service providers, investment firms, and investment funds
    • Clarify provisions in sectoral financial services legislation to ensure that they are compatible with the AML/CFT objectives of EU, for example, by ensuring that money laundering and terrorist financing risk is addressed consistently across all sectors and throughout the supervisory process

    This response complements the response of EBA to the EC consultation on AML/CFT action plan, which advises on how to be effective and efficient in establishing a new EU AML/CFT supervisor by building on the existing AML/CFT infrastructure.

     

    Related Links

    Keywords: Europe, EU, Banking, AML/CFT, Action Plan, ML/TF Risk, Single Rulebook, Operational Risk, Basel, EC, EBA

    Featured Experts
    Related Articles
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938