Through these Guidelines, the European Banking Authority (EBA) aims to ensure that customers, especially the most vulnerable ones, are not denied access to financial services without valid reason. This consultation runs until 6 February 2023.
The EBA is launching for public consultation on two new sets of Guidelines. The first set is adding a new section to the EBA’s money laundering and terrorist financing (ML/TF) risk factors Guidelines, which set out what financial institutions should do to identify and tackle ML/TF risk. This new section will help financial institutions understand how NPOs are organised, how they can be different from other customers and what they can do to manage ML/TF risks associated with such customers effectively instead of denying them access to financial services.
The second set tackles the issue of effective management of ML/TF risks by financial institutions when providing access to financial services. These Guidelines clarify the interaction between the access to financial services and institutions’ AML/CFT obligations, including in situation where customers, including the most vulnerable, have legitimate reasons to be unable to provide traditional forms of identity documentation. In addition, they set out the steps institutions should take when considering whether to refuse or terminate a business relationship with a customer based on ML/TF risk or AML/CFT compliance grounds.
A public hearing will take place via conference call on 10 of January. All contributions received will be published following the end of the consultation, unless requested otherwise.
These Guidelines have been developed in response to the European Commission’s request following the publication of the EBA’s Opinion on de-risking. They build on the EBA Opinion on the application of customer due diligence measures to customers who are asylum seekers from higher-risk third countries or territories issued in 2016 and on the statement the EBA issued in the context of the war in Ukraine. They are also in line with the EBA’s legal mandate to lead, coordinate and monitor the EU financial sector’s fight against ML/TF.
In September 2022, EBA was publishing its second report on the functioning of AML/CFT supervisory colleges in the EU. The Report finds that, although competent authorities are committed to implementing the AML/CFT colleges framework, they need to do more to ensure ongoing collaboration and proactive information exchange within colleges.
In July 2022, EBA has adopted a decision on the reporting by competent authorities of payment fraud data under the Payment Services Directive (PSD2). Competent authorities shall report to the EBA the payment fraud data under the PSD2, as specified in the EBA Guidelines on fraud reporting, via the European Centralised Infrastructure of Data (EUCLID) and according to the EBA Data Point Model (DPM).
In November 2022, EBA has published its final guidelines on the use of remote customer onboarding solutions. These guidelines have been developed in response to the European Commission’s request in the context of its Digital Finance Strategy, published in 2020. They are also in line with the EBA’s legal mandate to lead, coordinate, and monitor the EU financial sector’s fight against ML/TF.
These guidelines set out the steps credit and financial institutions should take to ensure safe and effective remote customer onboarding practices in line with applicable anti-money laundering and countering the financing of terrorism (AML/CFT) legislation and the EU’s data protection framework. The guidelines apply to all credit and financial institutions that are within the scope of the Anti-money Laundering Directive (AMLD).
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