EBA publishes opinion on considering ML/TF risks in review processes

Thursday 5 November 2020 12:21 CET | News

The European Banking Authority (EBA) has published an Opinion setting out how prudential supervisors should consider money laundering and terrorist financing (ML/TF) risks in the context of the Supervisory Review and Evaluation Process (SREP).

This Opinion forms part of the EBA’s ongoing work to strengthen the fight against money laundering and terrorist financing in Europe. Prudential supervisors need to develop a sufficient understanding of ML/TF risks to enable them to identify ML/TF risks and prudential concerns. ML/TF risks that are particularly relevant to prudential supervisors include those that are indicative of broader deficiencies in the internal governance or internal controls framework, such as ICT-related weaknesses, that criminals can use.

The EBA expects prudential supervisors to cooperate with AML/CFT supervisors to exchange information on ML/TF risks and to assess the implication of those risks for the of the institution they supervise.

This applies to prudential and AML/CFT supervisors that form part of the same competent authority, as it does to prudential and AML/CFT supervisors from different competent authorities and in cross border situations.

The EBA will include more detailed guidance on how ML/TF risks should be considered by prudential supervisors as part of their overall SREP assessment in the revised version of the SREP Guidelines that is planned to be published by end December 2021 as set out in the Pillar 2 roadmap.

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Keywords: AML, CFT, risk management, money laundering, EBA, SREP
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: Europe
This article is part of category

Securing Transactions