EBA has conducted an inquiry into dividend arbitrage trading schemes. It concluded that differences in domestic tax laws mean that national authorities do not share the same understanding of these schemes. As a result, AML supervisors also treat them differently. EBA has decided on a 10 point action plan to ensure that firms take appropriate action to ensure that tax crime that undermines the integrity of the EU’s financial system is prevented.
Its plan sets standards it expects to see in firms’ governance and internal controls generally, and their AML/CFT policies in particular. It will publish guidelines over the next couple of years and will then carry out a second formal inquiry to check how they are being addressed.