Strengthening EU rules for prudential and anti-money laundering supervision
New EU rules were proposed during European Commission president Jean-Claude Juncker's annual State of the Union speech, which would give the European Banking Authority powers to directly sanction banks.
The EU is under pressure to respond following a series of cross-border money laundering cases.
The European Banking Agency's new role would include acting as a data hub, collecting information on AML risks and trends and fostering exchange of information between national authorities. It aims to increase the cooperation with third countries in cross-border cases.
The European Commission also proposed a new, permanent committee to bring together the anti-money laundering supervisors of all Member States.
The proposal also mentions that prudential legislation requires supervisors of financial institutions to consider anti-money laundering related aspects throughout their work, but greater cooperation with money laundering supervisors is needed.
The proposal stipulates that the European Banking Authority needs to carry out a risk assessment to test strategies and resources in the context of the most important emerging money laundering risks and provide guidance to prudential supervisors on AML aspects.
Finally, the Communication emphasises the role for the European Central Bank (ECB) to conclude a multilateral memorandum of understanding with anti-money laundering supervisors on exchange of information.
For further information on the new proposals, please get in touch with the platform.