Struggle to close the gaps for rinsing

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The European Banking Authority is trying to close all the loopholes to curb money laundering and for this reason it has issued two days ago final guidelines for cooperation and exchange of information between prudential supervisors, for the combating money laundering and terrorist financing.

These guidelines put into practice practical ways of cooperating and exchanging information between supervisors and all money laundering authorities, both at Member State level and throughout the EU single market. In particular, they facilitate and support cooperation and the exchange of information throughout the life cycle of supervision covering new institution approvals, ongoing supervision including risk assessment and, where appropriate, the imposition of supervisory measures and sanctions, including withdrawal of a banking institution license .

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The European Banking Authority notes that each authority has its own role and responsibilities in the fight against money laundering and terrorist financing (ML / TF). However, there are areas where their tasks complement each other and, therefore, effective cooperation and exchange of information between them is essential to identify and address ML / TF risk mitigation. This effective cooperation and exchange of information is fundamental to ensuring the prudential strength and viability of institutions and the stability of the financial system as a whole, according to the European Banking Authority.

The EDF notes that the current framework includes different authorities across the EU, with different tasks, powers and responsibilities. They should now, and this is what they are trying to regulate, the guidelines, cooperation and exchange of information be organized effectively, both at home and across borders, regardless of the specific institutional arrangements that exist in each Member State. For better coordination, the EDF says, through effective monitoring and exchange of information, duplication of effort should be avoided and all authorities involved should exchange information they have gathered without undue delay.

The information should be provided in writing, whether in printed, electronic or any other form. Exchanges of information or requests for cooperation should include a clear identification of the relevant institution or branch, including the legal entity identification code where it is available, whether it is a branch or a parent bank.

Where necessary, such as in case of urgency or emergency, information should be requested or provided orally, by telephone or during a meeting between the competent supervisory authorities. Such an oral exchange should be supported in writing as soon as possible. The European Banking Authority also states that when a request for cooperation between the authorities involved is not met, an application should be made and the reasons for this should be explained in detail. It is also noted that AML / CFT supervisors should, on their own initiative, share information deemed useful for evaluating proposed acquisitions or increases in special participation when they are aware of events related to money laundering and terrorist financing. banks, shareholders or members of the board of directors.

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