The European Banking Authority (EBA) has launched a public consultation on its new Guidelines about the mechanism of AML/CFT-related cooperation and information exchange between prudential supervisors, AML/CFT supervisors and financial intelligence units (FIUs). Cooperation and information exchange are crucial to safeguarding the EU’s financial system from financial criminals. The EBA’s consultation will continue till August 27, 2021.
The Capital Requirements Directive (CRD) requires prudential supervisors, AML/CFT supervisors and FIUs to cooperate and share all relevant information with one another. This is important because the roles and responsibilities of various institutions and organizations often complement each other. Thus, there must be an appropriate level of cooperation and information exchange among them to tackle ML/TF risks.
The EBA’s guidelines push for cooperation and information exchange at the level of individual Member States as well as the EU’s Single Market. This cooperation and information exchange can be related to on-going risk assessment, supervisory actions, authorizations etc. The idea is to help authorities exchange information more clearly and effectively with the right stakeholders at the right stage. As such, the EBA is seeking comments on the consultation, which all willing can provide by clicking on the “send your comments” button on its consultation page by August 27, 2021.
Source: European Banking Authority