• Home
  • ESAs provide guidance on anti-money laundering and counter-terrorist financing supervision

ESAs provide guidance on anti-money laundering and counter-terrorist financing supervision

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published today its final Guidelines on the characteristics of a risk-based approach to anti-money laundering and terrorist financing supervision and the steps to be taken when conducting supervision on a risk-sensitive basis. These guidelines form part of the Joint Committee’s work to establish consistent, effective and risk-based supervisory practices across the European Union and contribute to a more robust European anti-money laundering and countering the financing of terrorism (AML/CFT) regime. They are consistent with international AML/CFT standards.

The risk-based supervision Guidelines are addressed to National Competent Authorities responsible for supervising credit and financial institutions’ compliance with applicable AML/CFT obligations. They define the characteristics of a risk-based approach to AML/CFT supervision and set out what Competent Authorities should do to ensure that their allocation of supervisory resources is proportionate to the level of money laundering and terrorist financing (ML/TF) risk associated with credit and financial institutions in their sector.

Specifically, these Guidelines require Competent Authorities to identify and assess the ML/TF risk to which their sector is exposed, and adjust the focus, intensity and frequency of supervisory actions in line with the risk-based approach. As part of an effective risk-based approach to AML/CFT supervision, Competent Authorities should have suitably qualified staff to carry out risk-based AML/CFT supervision in an informed and consistent manner. Finally, the Guidelines make it clear that the size or systemic importance of a credit or financial institution may not, by itself, be indicative of the extent to which it is exposed to ML/TF risk and that small firms that are not systemically important can nevertheless pose a high ML/TF risk.

The guidance can be found here.

Planet Compliance

Share this:
Share on email
Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on telegram
Share on whatsapp

Leave a Comment

Your email address will not be published. Required fields are marked *

Innovation and regulation in finance

Subscribe to our newsletter

PlanetCompliance does not claim to be exhaustive, instead we are helpful for any contribution from our users, and the content on this platform does not constitute legal advice.

Scroll to Top

Add Article

Add your article to Planet Compliance.