European Commission - enhancing European AML supervision by strengthening EBA? | Payment Services Law Blog | GÖRG Blog

European Commission - enhancing European AML supervision by strengthening EBA?

European Commission envisages strengthening EBA to supervise financial institutions and EU member states

The Commission proposed on 12th September 2018 to stengthen supervision in order to fight money-laundering and terrorist financing. The Commission trusts that the member states may counterfight respective activities more effectively (see more).

Sepecifically the Commission proposed to amend the Regulation establishing the European Banking Authority – Regulation No. (EU) 1093/2010 reinforcing EBA’s role.

For instance EBA shall be able to request national authorities to investigate potential material breaches. Additionaly, EBA’s existing powers will be reinforced so that EBA will be able to address decisions directly to individual financial institutions as well. In other words: EBA will be able to oversee financial institutions as well as the EU member states or respectively its national authorities. What is more, local authorities shall enhance its communication among each other.

The reason behind this is that some member states did not properly transpose the 4th AML Directive – Directive (EU) No. 2015/849. From its 16 initial infringment proceedings in July 2017, the Commission has refered at least three member states to the ECJ this summer. Further infrigments are not closed yet (additional background).

By implemeting a centralised supervisory authority and an overall strategy Commissioner Věra Jourová plans to close any efficency gaps. The European Council already declared on 2nd October 2018 to support the Commission’s proposal.

AML is currently a major concern for the EU. We need to expect further guidance or proposals by the EU in near future. Meanwhile, the member states are obliged to transpose the 5th AML Directive – Directive (EU) No. 2018/843 by 10th January 2020.

See the detailed Commissions proposal (EN).

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