CMVM incorporates EBA guidelines for preventing ML/TF in supervisory practices
27 May 2020
The CMVM will incorporate in its supervisory practices, EBA's
guidelines on cooperation and exchange of information, in the context of preventing the use of the financial system for the purposes of money laundering and terrorist financing (ML/TF).
These guidelines, which came into force in January this year, are intended for competent authorities that supervise credit institutions and other financial institutions in the ML/TF dimension and under Directive 2015/849 of the European Parliament and of the Council, of 20 May 2015.
In this context, all competent authorities should carry out a mapping exercise of all entities under their supervision, with a view to identifying those entities that present the greatest ML/FT risk and that are active in other jurisdictions, as well as entities established in other Member States or in third countries operating in their jurisdiction and promoting cooperation and information exchange within the scope of the ML/FT colleges to be implemented.
These ML/FT colleges are mechanisms of cooperation and exchange of information within the scope of ML/FT supervision between authorities with ML/FT supervisory powers of financial institutions operating in a cross-border context and considering the different areas of activity - banking sector, financial instrument and insurance markets. A two-year transitional period (until 2022) is planned for its inception.
The competent authorities had, until 25 May 2020, to inform EBA on the compliance with the guidelines, namely by incorporating them into their supervisory practices.
The reform of the European supervisory authorities in late 2019 led to the introduction of relevant changes in their competencies and powers, with the ML/FT prevention powers of the three European supervisory authorities - ESMA, EBA and EIOPA - concentrated in the EBA. This has been the case since 1 January 2020 - the European supervisory authority responsible for heading, coordinating and monitoring ML/FT preventive supervision across the European Union's financial sector, by ensuring that the financial system is not used for the purposes of money laundering and terrorism financing.
