EBA欧洲银行-2019-09-05-Introductory-statement-of-the-EBA-Chairperson-Jose-Manuel-Campa_6页_466kb

EBA Chairperson Jose Manuel Campa Speech on AML/CFT in the EU (5 September 2019)

Core Content

The European Banking Authority (EBA) Chairperson, Jose Manuel Campa, delivered a speech to the Committee on Economic and Monetary Affairs (ECON) of the European Parliament on 5 September 2019, outlining the EBA's role in combating money laundering and terrorist financing (ML/TF) in the EU financial system. The speech emphasized the importance of a coordinated and effective approach to AML/CFT supervision, highlighting both the progress made and the ongoing challenges.

Main Views and Key Information

The EBA's Role in AML/CFT

• The EBA is an independent EU Authority tasked with maintaining the stability and effectiveness of the EU financial system.
• Its objective is to ensure the consistent and effective application of the Anti-Money Laundering Directive (AMLD).
• The EBA works to lead, coordinate, and monitor efforts by EU authorities in tackling ML/TF.
• It recognizes that the task is complex and requires critical evaluation of the current legal framework to ensure it fully limits the scope for misuse of the financial system.

Current AML/CFT Powers

• The EBA, along with ESMA and EIOPA, has developed several guidelines, technical standards, and opinions since 2016.
• It promotes common supervisory culture and practices through training, implementation reviews, and best practice exchanges.
• The EBA publishes Joint Opinions on ML/TF risks to foster a shared understanding across the EU.
• However, its enforcement powers are limited, and the Burden of Proof (BuL) process is complex.
• The EBA can only recommend actions in case of breaches of Union law, not impose penalties or correct weak legal provisions.

Identified Challenges

• Ineffective systems and controls in financial institutions, particularly at the group level.
• Mismatch between risk appetite and risk management.
• Divergent national mandates, organisation, and resources among competent authorities.
• Inconsistent national supervision approaches and limited cross-border oversight.
• Differing enforcement powers and cultures among member states.

Steps Taken to Address Challenges

• Supported revisions to the AMLD that promote risk-based supervision and cross-border coordination.
• Published Risk Factors Guidelines, Risk-Based Supervision Guidelines, and Supervisory Cooperation Guidelines.
• Developed AML/CFT colleges to enhance cooperation and information exchange between AML/CFT and prudential supervisors.
• Launched a multi-annual implementation review programme with tailored feedback and thematic reports.
• Initiated work on mapping ML/TF risks for prudential supervisors and updating SREP and internal governance guidelines.
• Conducted investigations into suspected ML/TF cases in Malta, Estonia, and Denmark, and is examining dividend arbitrage schemes in collaboration with ESMA.

Future Role of the EBA

• The new EBA Regulation grants the EBA enhanced powers to lead, coordinate, and monitor AML/CFT measures across the EU.
• It includes tasks such as establishing an EU-wide AML/CFT database, performing risk assessments on competent authorities, and requesting investigations into individual institutions.
• The EBA will continue to promote cooperation and information sharing, and enhance monitoring of implementation effectiveness and convergence.
• It will strengthen the link between AML/CFT and prudential supervision, including common assessment methodologies for authorisation.

Remaining Challenges

• The minimum harmonisation approach under the AMLD leads to national differences and limited convergence.
• A Regulation-based framework could help address these divergences and promote a more centralised and harmonised approach.
• The EBA calls for standardised risk-based methodologies, harmonised CDD requirements, and better cooperation and information sharing among competent authorities.
• The EBA emphasizes that it cannot act as a supervisor of supervisors, and that further centralisation may be necessary if current measures fail to meet expectations.

Conclusion

The EBA is committed to improving AML/CFT supervision in the EU through policy development, training, and enhanced cooperation. While progress has been made, the current system still faces significant challenges, particularly in national divergence and supervisory effectiveness. The EBA advocates for greater harmonisation and centralisation, but acknowledges the need for collective effort at both EU and national levels to ensure a comparable and effective approach to ML/TF prevention.