The European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority (collectively known as the European Supervisory Authorities) have published joint guidelines aimed at enhancing cooperation between national regulators in combating anti-money laundering and counter-terrorist financing. The EU Fourth Money Laundering Directive requires national regulators to cooperate in their AML/CTF supervision of entities that operate on a cross-border basis. The guidelines set out how national regulators may satisfy this obligation. They will apply from January 10, 2020; national regulators must make every effort to comply with the guidelines and will be required to notify the ESAs of whether they comply or intend to comply, or give reasons for their non-compliance.
There are 16 guidelines in total, which cover:
- Mapping of firms – national regulators should identify all cross-border firms operating in their jurisdiction;
- Establishment of AML/CTF colleges – if three or more Member States are involved in the AML/CTF supervision of a firm, a permanent college of the relevant national regulators, together with “observers” (e.g. the financial intelligence unit), where appropriate, should be established to facilitate exchange of information about the firm; and
- Bilateral relationships – where it is not deemed necessary to establish a supervisory college for a cross-border firm, national regulators should still engage with each other on a bilateral basis in accordance with the basic framework established under the guidelines.
View the ESAs' joint guidelines on AML/CTF cooperation.