EBA AML/CFT Newsletter

In July, we expanded the scope of our Questions and Answers (Q&A) process and tool to enable external stakeholders to submit questions to the EBA about the interpretation and application of the Anti-Money-Laundering Directive and the legal instruments we have issued in its support. In October, we published our first Q&As on EU Delegated Regulation 2019/758. These particular Q&As were about the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries.

In November, we fulfilled another objective of the 2018 EU Council Action Plan on AML/CFT, by issuing an Opinion that sets out how prudential supervisors should consider money laundering and terrorist financing (ML/TF) risks in the context of the prudential Supervisory Review and Evaluation Process (SREP). We stressed the need for prudential supervisors to develop a sufficient understanding of ML/TF risks to enable them to identify these risks and related prudential concerns and gave examples how to do so. We also expect prudential supervisors to cooperate effectively and in a timely manner with AML/CFT supervisors to exchange information on ML/TF risks and to assess the implication of those risks for the safety and soundness of the institutions they supervise.

In December, we published an Opinion on the interplay between the AMLD and the Deposit Guarantee Schemes Directive.

In December, we published our first report on the functioning of AML/CFT colleges. This report summarises examples of good and poor practice that the EBA observed, and makes recommendations to competent authorities to contribute to the effective operation of AML/CFT colleges going forward.

Over the last year, competent authorities in the EU have begun to set up regular, formal meetings of the supervisory authorities that are responsible for the AML/CFT supervision of the same financial institution as required by the ESAs’ AML/CFT colleges Guidelines. 10 such colleges have been set up so far. The EBA is a member of all colleges and provides technical support to competent authorities as appropriate.

In December, we published the methodology we will use to carry out risk assessments, which is a new power we have received in January 2020 under Article 9a of our founding Regulation.

We will use 9a risk assessments to understand how well equipped competent authorities are to tackle emerging ML/TF risks, and to ensure that those risks are managed in a timely, effective and coordinated manner across the single market.