EBA has published the results of its first review of AML/CFT supervision of banks in the EU. It says most of the authorities included in its study are taking significant steps to improve the quality of supervision and understand the laws and standards required. But there is a tendency to focus on tick-box compliance rather than looking at the actual effectiveness of systems and controls, and EBA found that authorities need a stronger approach to enforcement by using appropriate, proportionate and dissuasive measures to correct deficiencies in banks’ systems and controls. It also wants to see better co-operation between domestic and international stakeholders.
EBA has a new mandate on AML/CFT supervision, and has published a fact sheet explaining what it has done up to now, and how it plans to do things differently in future.
EBA is also consulting on new risk factors guidelines, that take into account MLD5 and new risks. Among the changes it proposes is guidance on how to comply with MLD5’s EDD requirements for high-risk third country-related business, and give more detail on identifying beneficial owners and using innovative identification solutions. It also proposes new sectoral guidance for crowdfunding platforms, corporate finance, PISPs, AISPs and currency exchanges. It asks for comment by 5 May.