EBA欧洲银行-Introductory-statement-by-EBA-Director-Piers-Haben-TAX-3_5页_255kb

EBA Director's Introductory Statement on AML/CFT Supervision in the EU Banking Sector

Core Content

On 26 April 2018, Piers Haben, Director of Banking Markets, Innovation and Consumers at the European Banking Authority (EBA), addressed the European Parliament's Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3) during a public hearing on combating money laundering and terrorist financing (ML/TF) in the EU banking sector.

The statement outlines the EBA's role, powers, and current AML/CFT initiatives, while also highlighting the limitations of the current legal framework and suggesting necessary reforms to enhance the effectiveness of AML/CFT supervision in the EU.

Main Points and Key Information

The EBA's Role

• The EBA is an independent EU authority responsible for maintaining the stability and effectiveness of the EU financial system.
• It promotes sound, effective, and consistent regulation and supervision.
• It has a legal duty to ensure the consistent application of the Anti-Money Laundering Directive (AMLD).

The EBA's Powers

• The EBA can issue opinions, recommendations, guidelines, and draft legally binding standards under EU legislation.
• It supports the implementation of these standards through training, peer reviews, and sharing best practices.
• However, it does not supervise individual financial institutions and lacks enforcement powers to compel changes in supervisory practices.

The EBA's AML/CFT Work

• The EBA collaborates with ESMA and EIOPA to ensure a consistent AML/CFT approach across the EU financial services industry.

• It has published several key documents over the past 18 months to improve AML/CFT practices:

  • Risk Factors Guidelines: Help financial institutions and competent authorities assess and manage ML/TF risk based on a risk-based approach.
  • Risk-Based Supervision Guidelines: Guide competent authorities on how to assess and supervise ML/TF risks.
  • Draft Regulatory Technical Standards: Focus on the application of group-wide AML/CFT policies and procedures in third countries, particularly where data restrictions may hinder risk assessment.

• The EBA also focuses on promoting cooperation and information exchange between competent authorities, especially in cross-border cases.

• Recent training events and preliminary investigations into potential breaches of Union law in Portugal, Malta, and Latvia demonstrate the EBA's proactive stance.

Enhancing the Effectiveness of the EU's AML/CFT Approach

• The EBA has identified three key areas where changes are needed:
  1. Greater Harmonisation of Legal Framework: The current minimum harmonisation approach of the AMLD allows for national differences, which can lead to inconsistencies and increased ML/TF risks. A more harmonised legal framework is essential.
  2. Revising Fitness and Propriety Rules: The EU's rules on authorisations and fitness depend heavily on national transpositions. Competent authorities should be able to address ML/TF concerns without requiring criminal convictions as proof.
  3. Enhancing EBA's Powers and Resources: The EBA needs more authority and resources to conduct independent reviews and issue 'comply or explain' recommendations, which would support the consistent application of AML/CFT standards.

Conclusion

Haben emphasized that while the EBA has made progress in improving AML/CFT supervision, the current legal and operational constraints limit its effectiveness. He called for a more harmonised legal framework, better enforcement mechanisms, and increased resources to ensure that the EU's AML/CFT regime is robust, consistent, and capable of addressing the growing risks of financial crime.