Council of Europe (COE)’s AML watchdog MONEYVAL has published a report to help authorities conduct their AML/CFT supervisory activities in challenging times. This report draws on the experiences of supervisors from MONEYVAL jurisdictions and other institutions. MONEYVAL particularly evaluated the steps these supervisors have taken to address the challenges that the COVID-19 pandemic has posed, such as restricted operation, restrictions on on-site visits, technical issues and limited human resources. Some of the steps covered in this report are discussed below.
To address the new ML/TF risks that had emerged as a result of the pandemic, supervisors enhanced the digitalization of their core functionality so their operations could continue uninterrupted. Supervisors also made use of various software and hardware solutions to receive information from reporting entities on ML/TF risks as well as to conduct remote or hybrid inspections using video calling. Moreover, supervisors embraced new methods of communication, such as video clippings, online training sessions and webinars, etc.
Data security was an important hurdle to cross, and supervisors implemented new protocols and trained their staff on cybersecurity issues. In the cases where there were multiple supervisors in a jurisdiction, setting up of coordination committees helped in making communication effective and clear. Moreover, supervisors set up a system to allow reporting entities to use digital IDs. In low-risk situations, customer due diligence was simplified for reporting entities to accommodate clients facilitating government relief measures in response to the pandemic.
Source: Council of Europe