Recent regulatory developments of interest to financial institutions.
Contents
- COVID-19: EBA statement on actions to mitigate financial crime risks
- COVID-19: FATF statement on measures to combat illicit financing
COVID-19: EBA statement on actions to mitigate financial crime risks
On 31 March 2020, the European Banking Authority (EBA) published a statement on actions to mitigate financial crime risks in light of COVID-19.
The EBA reminds credit and financial institutions that it remains important to continue to put in place and maintain effective systems and controls to ensure that the EU's financial system is not abused for money laundering (ML) or terrorist financing (TF) purposes and asks competent authorities to support them in this regard.
Among other things, the EBA calls on competent authorities that are responsible for the anti-money laundering (AML) and counter-terrorist financing (CTF) supervision of credit and financial institutions under the Fourth Money Laundering Directive to support credit and financial institutions’ ongoing AML/CFT efforts by:
- making clear that financial crime remains unacceptable, even in times of crisis such as the COVID-19 outbreak;
- continuing to share information on emerging ML/TF risks and setting clear expectations of the steps credit and financial institutions should take to mitigate those risks; and
- considering how to adapt the use of their supervisory tools temporarily to ensure ongoing compliance by credit and financial institutions with their AML/CFT obligations.
COVID-19: FATF statement on measures to combat illicit financing
On 1 April 2020, the Financial Action Task Force (FATF) published a statement by the FATF President on measures to combat illicit financing in light of COVID-19.
In his statement, the President addresses:
- COVID-19-related financial crime risks;
- digital onboarding and simplified due diligence; and
- ongoing outreach and advice.
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