European Banking Authority
AML/CFT - EBA publishes Final Report on draft RTS - 20 December 2021
The European Banking Authority (EBA) has published a Final Report containing draft regulatory technical standards (RTS) on the establishment of an anti-money laundering (AML) and countering the financing of terrorism (CFT) central database.
Among other things, the draft RTS specify the type of information competent authorities will have to report, how information will be collected, and how the EBA will analyse and disseminate the information contained in the database. They also clarify how the reporting obligation under the RTS interacts with other notifications, such as those required under Article 62 of the Fourth Money Laundering Directive (EU/2015/849) (MLD4).
The EBA will now submit the draft RTS to the European Commission for approval, after which they will be directly applied in all Member States. The European Reporting system for material CFT/AML weaknesses (EuReCA) will start to receive data in Q1 2022.
EBA Final Report: on draft regulatory technical standards under Article 9a(1) and (3) of Regulation 1093/2010/EU setting up an AML/CFT central database and specifying the materiality of weaknesses, the type of information collected, the practical implementation of the information collection and the analysis and dissemination of the information contained therein (EBA/RTS/2021/16)
Press release
AML/CFT - De-risking - EBA publishes Opinion and Report - 5 January 2022
The European Banking Authority (EBA) has published an Opinion (EBA/Op/2022/01) and accompanying Report (EBA/REP/2022/01) on the scale and impact of ‘de-risking’ in the EU and the steps national competent authorities (NCAs) should take to tackle unwarranted de-risking. De-risking refers to decisions taken by financial institutions not to provide services to customers in certain risk categories. It can be a legitimate risk management tool but it can also be a sign of ineffective money laundering (ML) and terrorist financing (TF) risk management.
The EBA’s Opinion and Report follow a series of information gathering exercises launched by the EBA in 2020-21 in which it reached out to NCAs and external stakeholders across the EU. This included a call for input launched in June 2020. The EBA’s findings suggest that de-risking has had a detrimental impact on the achievement of the EU’s objectives, particularly in relation to fighting financial crime and promoting financial inclusion, competition and stability.
The EBA considers that its regulatory guidance on how to manage ML/TF risks is effective. It highlights steps that NCAs, the European Commission and co-legislators can take, including:
- engaging more actively with institutions that de-risk and with users of financial services that are particularly affected by de-risking, to raise mutual awareness of their respective rights and responsibilities;
- clarifying, in the Payment Accounts Directive (2014/92/EU) (PAD), the interaction between anti-money laundering/countering the financing of terrorism (AML/CFT) requirements and the right to open and use a payment account with basic features; and
- using the forthcoming review of the Payment Services Directive (EU/2015/2366) (PSD2) to ensure more convergence in the way payment institutions access credit institutions’ payment account services.
The EBA will follow up with NCAs on steps taken to tackle unwarranted de-risking to inform its 2023 Opinion on ML/TF risks under Article 6(5) of the Fourth Money Laundering Directive (EU/2015/849) (MLD4).
Opinion of the European Banking Authority on ‘de-risking’ (EBA/Op/2022/01) and Report on de-risking and its impact on access to financial services (EBA/REP/2022/01)
Press release
UK Government
Anti-Corruption Strategy 2017-2022 - Government publishes year three update - 16 December 2021
The government has published its year three update on the implementation of the UK Anti-Corruption Strategy, published in December 2017 (the Strategy). The update details the impact of the COVID-19 pandemic on the implementation of the Strategy and highlights areas of progress including:
- securing the public commitment with all Crown Dependencies and inhabited Overseas Territories to implement publicly accessible registers of company beneficial ownership information;
- extending the remit of the National Fraud Initiative and helping national authorities to undertake bank account and active company checks;
- reforming the police complaints and disciplinary systems to make them more transparent, independent and proportionate; and
- securing endorsement from G20 ministers of a G20 Call to Action for countries to combat corruption in the COVID-19 response and recovery.
Of the 134 commitments made in the Strategy: 52 have been completed; 68 are ongoing, seven of which are progressing with a risk that deadlines may be missed and/or not met; and a further seven of which are off track with deadlines expected to be missed. The government will now start to consider which of the remaining commitments to prioritise in light of the significant challenges and trends that have emerged since the Strategy was introduced.
HM Government anti-corruption strategy 2017-2022 year three update
Press release
Joint Money Laundering Steering Group
AML/CTF - JMLSG consults on revisions to its Guidance - 16 December 2021
The Joint Money Laundering Steering Group (JMLSG) has published for consultation proposed revisions to the syndicated lending guidance set out in Part II, Sector 17, of its anti-money laundering (AML) and counter-terrorist financing (CTF) guidance for the financial services sector. The JMLSG is proposing the insertion of a new paragraph 17.29A, which deals with completion of customer due diligence by lenders.
The deadline for responses is 17 January 2022.
Consultation: Part II Sector 17 (Syndicated Lending)
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Press release
