The Basel Committee on Banking Supervision has published a consultation paper on the “Introduction of guidelines on interaction and cooperation between prudential and anti-money laundering/counter-terrorism financing supervision”. Under the consultation paper, the Basel Committee proposes to amend its guidelines on the “Sound management of risks related to money laundering and financing of terrorism” to include guidance on the interaction between prudential and AML/CFT supervision in a bid to enhance the effectiveness of the supervision of banks’ AML/CFT regimes. Responses to the consultation should be submitted by February 6, 2020.
The proposed amendments include additional guidance recommending that prudential and AML/CFT supervisors establish effective cooperation mechanisms to ensure money laundering and terrorist financing risks are supervised in both domestic and cross-jurisdictional contexts. The paper also sets out suggestions for how that cooperation may work. Prudential and AML/CFT supervisors should consider exchanging relevant information that they collect in the process of conducting activities such as: (i) bank authorization-related procedures; (ii) ongoing governance, risk management and AML supervision; and (iii) enforcement actions and/or the revocation of banking licences. The consultation paper also sets out proposed mechanisms for how that cooperation might be effected, recommending that supervisors maintain official channels, such as bilateral or multilateral exchanges, prudential supervisory colleges and AML/CFT colleges to facilitate the exchange of information. Supervisors are advised to exchange information periodically and when necessary as relevant for their respective tasks and, in the case of banks operating across borders, should establish mechanisms to ensure cross-border cooperation is effective and timely. Prudential and AML/CFT supervisors may even consider conducting joint inspections.
View the Basel Committee's Consultation on the Introduction of guidelines on interaction and cooperation between prudential and AML/CFT supervision.
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