EBA publishes guidelines on the role and responsibilities of the AML/CFT compliance officer – Money laundering

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The 14the June 2022, the European Banking Authority (“EBA”) issued and published its Guidelines on Compliance Management Policies and Procedures and the Role and Responsibilities of Anti-Money Laundering Compliance money and the financing of terrorism (“AML/CFT”). agent under Article 8 and Chapter VI of Directive (EU) 2015/849 (“Guidelines”). These guidelines have been issued following the successful public consultation on the Draft Guidelines on Compliance Management Policies and Procedures and on the Role and Responsibilities of the AML/CFT Compliance Officer under Article 8 and Chapter VI of Directive (EU) 2015/849 which was duly launched on 2n/a August last year. The deadline for competent authorities to report whether they comply with the guidelines will be six months after the publication of the translations. The guidelines will apply from 1 December 2022.

In particular, the EBA has a legal obligation to prevent the use of the European Union’s financial system for the purposes of money laundering and terrorist financing, and a mandate to direct, monitor and coordinate the sector’s fight financial institution of the European Union against money laundering and the financing of terrorism. Through these guidelines, the EBA aims to achieve a common understanding, by competent authorities and credit or financial institutions, of the role and responsibilities of the AML/CFT compliance officer; and the AML/CFT management body or the senior manager in the absence of a management body.

The EBA, through the publication of these guidelines, has indeed created a common understanding, which must be applied consistently and reinforced if necessary, by competent authorities and credit or financial institutions, of AML/ FT of credit or financial institutions. This common understanding is of vital importance to strengthen and consolidate the European Union’s defenses against AML/CFT, and the EBA has therefore set a deadline of six months after the publication of the necessary translations of the guidelines for all the competent authorities report whether they comply with the guidelines, which means that the guidelines will be applicable from 1st December 2022.

In accordance with the above, the recently published guidelines have been promulgated with the main task of establishing provisions on the following points:

  1. The role and responsibilities of the management body in the context of AML/CFT and of the senior official responsible for AML/CFT: Guideline 4.1 specifies the duties and tasks of the management body in the context of AML/CFT.
  1. The role and responsibilities of the AML/CFT compliance officer: Guideline 4.2 specifies the need to appoint an AML/CFT compliance officer at a level that includes the power to propose, on his own initiative, all necessary or appropriate measures to ensure compliance and the effectiveness of internal measures AML/CFT for the management body in its monitoring and management function. Guideline 4.2 also specifies the suitability requirements for the role of AML/CFT compliance officer and explains the roles and responsibilities of the person employed in this role.
  1. Organization of the AML/CFT compliance function at group level: Guideline 4.3 defines specific roles and responsibilities and clarifies reporting lines with regard to the role of the AML/CFT compliance officer function at group level, in order to ensure that gaps in the AML/CFT framework affecting the whole group or a large part of the group are addressed effectively.

It is essential to note that the provisions set out in the guidelines must be applied in an effective and proportionate manner to the type, size and internal organization of the credit or financial institution, the nature, scope and complexity of its activities, and the money laundering and terrorist financing risks to which the credit institution or financial institution is exposed.

Following the publication of the guidelines, they have been translated into the official EU languages ​​and published on the EBA website. The deadline for competent authorities to indicate whether they comply with the guidelines will be six months after the publication of the translations. This ultimately means that the guidelines will apply from 1st December 2022.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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