Alan Paterson
Joby Carpenter
Plenitude Insights
Capital Markets/Investment Banking
Advisory and Transformation
AML/CTF/CPFIn line with the Fourth EU AML Directive, the European Banking Authority (EBA) issued its 3rd Joint Opinion on the risks of ML/TF affecting the European Union’s financial sector earlier this year.
Article 6(5) of the EU’s Fourth Money Laundering Directive (2015/849) (4MLD) requires the European Supervisory Authorities (ESAs) to issue their joint opinion on the risks of money laundering and terrorist financing (ML/TF) affecting the European Union’s (EU’s) financial sector every two years. On 3 March 2021, the European Banking Authority (EBA) issued the 3rd Joint Opinion. The EBA issued the joint opinion as part of its new mandate to lead, coordinate and monitor the fight against ML/TF in the financial system at the EU level.
The European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) were closely involved in the process. The survey was informed by over 50 Competent Authorities (CAs) responsible for the AML/CFT supervision of credit and financial institutions. The joint opinion sets out proposed actions addressed to CA’s, which are based on the detailed analysis and findings set out in the report.
Conclusion
The joint opinion clearly signals that CA’s should apply a greater focus on the quality of controls in Investment Firms as part of their supervisory approach, including the review of AML/CFT returns and inspections. Separately the breach findings provide thematic considerations with respect to internal controls, AML/CFT policies and procedures, customer and business-wide risk assessments
