AML/CFT Framework: EBF Statement

The EBF supports EU efforts to enhance the AML & CFT framework. It emphasizes the need for a secure legal basis for AML/CFT data exchange, data protection, and a risk-based approach in enhancing regulatory oversight.

AML/CFT Framework: EBF Statement
EU Improving the EU AML/CFT Framework

EBF Supports Efforts to Improve EU AML/CFT Framework

Source: European Banking Federation Keywords AML CFT

The European Banking Federation (EBF) has expressed its full support for the European Commission and colegislators' efforts to improve the effectiveness of the current EU Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) framework. The EBF believes this is a unique opportunity to enhance the framework and should not be missed. The organization has studied the positions reached in both the Council and the European Parliament on the new AML Regulation, AML Directive, and the Regulation establishing a new AML Authority. The EBF welcomes the recognition of the benefits of information sharing for AML/CFT purposes and emphasizes the importance of having a sound legal basis for exchanging AML/CFT data with appropriate safeguards to ensure data protection. The EBF also calls for a stronger focus on the risk-based approach to updating customer information and stresses the importance of following a risk-based approach in developing the AML Authority's methodology for selection of obliged entities under its direct supervision.

Improved EU AML/CFT Framework

The improvement of the EU AML/CFT framework has several potential implications for the future. Firstly, it could lead to more effective identification and prevention of financial crimes, such as money laundering and terrorist financing, contributing to a safer and more secure financial ecosystem in Europe.

This, in turn, could foster greater trust in the financial system, encouraging more investment and economic growth.
The enhanced legal basis for exchanging AML/CFT data could facilitate better cross-border cooperation among financial institutions and regulators, leading to more efficient and coordinated efforts to combat financial crime. This could help prevent criminals from exploiting jurisdictional gaps and weaknesses in the system.

The emphasis on a risk-based approach in both customer information updates and the selection of obliged entities under direct AML Authority supervision could ensure that resources are allocated more effectively to address areas of highest risk. This could lead to more targeted and impactful actions against financial crime.

The call for stronger Ultimate Beneficial Owner (UBO) registers could increase the transparency and reliability of beneficial ownership information, making it more difficult for criminals to hide behind complex corporate structures. This could further deter illicit activities and enhance the overall integrity of the European financial system.
Lastly, the potential improvements to the EU AML/CFT framework could contribute to the harmonization of AML/CFT standards and practices across Europe, making it easier for financial institutions to comply with regulations and reducing the risk of regulatory arbitrage.

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EBF reaction to EU AML/CFT framework
The European Banking Federation (EBF) is fully supportive of the European Commission and the co-legislators overarching objective to improve the effectiveness of the current EU AML/CFT framework. Bearing in mind the necessary lead-time and efforts to get the AML Package adopted and implemented, thisā€¦

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