EBA欧洲银行-Letter-to-Tiina-Astola-requesting-an-investigation-on-possible-BUL-under-Article-17-of-Regulation-28EU2920No-10932010-06062018_2页_207kb

EBA Breach of Union Law Investigation Summary

Core Content

The European Banking Authority (EBA) has initiated a formal Breach of Union Law Investigation concerning the Maltese Financial Intelligence Analysis Unit (FIAU) and its handling of the high-risk institution, Pilatus Bank. The investigation is based on preliminary findings that suggest the FIAU may have failed to comply with key provisions of the 3rd Anti-Money Laundering Directive (AMLD3).

Key Findings and Main Points

• Investigation Initiation:
  The EBA has decided to open an investigation under Article 17 of Regulation (EU) No 1093/2010, following a letter from the Maltese competent authorities dated 23 October 2017 (Ref. Ares (2017)5170820).

• Preliminary Assessment:
  The EBA identified several shortcomings in the FIAU's actions, including:

  • Inadequate Monitoring: The FIAU did not conduct its investigation or plan supervisory activities in a manner that ensured compliance with Article 37 of AMLD3, which requires competent authorities to effectively monitor and take necessary measures to ensure compliance.
  • Failure to Ensure Adequate AML/CFT Policies: The FIAU did not ensure that Pilatus Bank implemented adequate and appropriate AML/CFT policies and procedures, as required under Article 34 of AMLD3.
  • Lack of Effective Sanctions: The FIAU did not impose effective, proportionate, and dissuasive sanctions or other supervisory measures to correct the identified deficiencies, as mandated by Article 39 of AMLD3.
  • Conclusion of Breach: Based on the above, the EBA concludes that the FIAU may have breached Articles 37 and 39 of AMLD3.

• Investigation Process:

  • The EBA will send a report to the FIAU, giving it the opportunity to respond.
  • The EBA Breach of Union Law Panel will then be convened to assess whether a breach of Union law has occurred and, if so, to propose recommendations to the EBA Board of Supervisors for adoption.
  • The investigation is expected to conclude by mid-July 2018, as the EBA has 2 months to complete its process.

• Follow-Up with MFSA:

  • The EBA has also sent a request for additional information to the Maltese Financial Services Authority (MFSA) regarding its role in the supervision of Pilatus Bank.
  • The request includes inquiries about:
    • Cooperation with the FIAU
    • Prudential supervision and interventions in the authorisation process
    • Internal controls and business model of Pilatus Bank
  • The need for further action will depend on the MFSA's response to this request.

Key Information

• Investigation Reference: EBA/2018/D/1856
• Contact Details for Andrea Enria (EBA Chairperson):
  • Address: Floor 46, One Canada Square, London E14 5AA, United Kingdom
  • Direct Phone: +44[0]2073821765
  • Email: andrea.enria@eba.europa.eu
• Timeline: The investigation is expected to conclude by mid-July 2018.
• Relevant Legal Framework:
  • Regulation (EU) No 1093/2010 (EBA's founding Regulation)
  • EBA Rules of Procedure for Breach of Union Law Investigations
  • 3rd AML Directive (AMLD3), particularly Articles 34, 37, and 39

Conclusion

The EBA's investigation into the Maltese FIAU's handling of Pilatus Bank highlights potential failures in the supervision of high-risk financial institutions. The findings suggest that the FIAU may not have fulfilled its obligations under AMLD3, particularly in ensuring effective monitoring, compliance with AML/CFT policies, and the imposition of appropriate sanctions. The outcome of the investigation will determine whether the FIAU has indeed breached Union law and what corrective measures may be recommended.