The European Banking Authority (EBA) has published its second report on the functioning of AML/CFT supervisory colleges in the EU. Highlights from this report are shared below.
The EBA’s report highlights that competent authorities must ensure continuous collaboration and information exchange within AML/CFT colleges. Note that AML/CFT colleges are permanent structures aimed at improving cooperation between different supervisors associated with cross-border institutions. The report also specifies some good practices to help competent authorities becomes more effective. These practices include the organization of well-structured college meetings by lead supervisors, information sharing by members, and involvement of prudential supervisors in AML/CFT colleges.
The EBA’s report further suggests that AML/CFT colleges must, over time, be fully integrated with supervisory processes. Moreover, AML/CFT supervisors must understand the importance of regularly and promptly exchanging information in colleges, especially when AML/CFT deficiencies are identified in an institution. College activity should be more risk-based, meaning that meetings should be more frequent for highly vulnerable cross-border institutions.
Source: European Banking Authority