Money laundering - Recent cases from a EU banking supervisory perspective

11-02-2019

This briefing (1) provides some insight into recent cases of breaches or alleged breaches of anti-money laundering (AML) rules by SSM supervised banks and (2) identifies some common prudential features. The briefing also outlines (3) the respective roles of European and national authorities in applying AML legislation that have been further specified in the 5th AML Directive adopted by the EP Plenary on 19 April, and (4) ways that have been proposed to further improve the AML supervisory framework, including the 12 September Commission’s communication and the changes to the European Supervisory Authority (ESA) Regulation proposed by the Commission. The Commission suggests a three-pronged approach to reinforce AML supervision: (i) further guidelines and best practices developed by EBA; (ii) stronger powers - including an obligation to act - for the European Banking Authority (‘EBA’) as part of the ESA review being negotiated at Council and Parliament; (iii) establishing, where appropriate, an EU body, at a later stage, as part of the review clause of the 5th AML Directive in 2022. This briefing is an updated version of the April 2018 EGOV briefing.

This briefing (1) provides some insight into recent cases of breaches or alleged breaches of anti-money laundering (AML) rules by SSM supervised banks and (2) identifies some common prudential features. The briefing also outlines (3) the respective roles of European and national authorities in applying AML legislation that have been further specified in the 5th AML Directive adopted by the EP Plenary on 19 April, and (4) ways that have been proposed to further improve the AML supervisory framework, including the 12 September Commission’s communication and the changes to the European Supervisory Authority (ESA) Regulation proposed by the Commission. The Commission suggests a three-pronged approach to reinforce AML supervision: (i) further guidelines and best practices developed by EBA; (ii) stronger powers - including an obligation to act - for the European Banking Authority (‘EBA’) as part of the ESA review being negotiated at Council and Parliament; (iii) establishing, where appropriate, an EU body, at a later stage, as part of the review clause of the 5th AML Directive in 2022. This briefing is an updated version of the April 2018 EGOV briefing.