EBA-Guidelines on policies and controls for the effective management of ML/TF risks when providing access to financial services

EBA-Guidelines on policies and controls for the effective management of ML/TF risks when providing access to financial services

The European Banking Authority (EBA) has developed specific guidelines for managing the risks of money laundering (ML) and terrorist financing (TF) in the context of providing access to financial services. These guidelines, effective from October 2, 2023, are integral to ensuring that credit and financial institutions maintain robust measures against these risks.

Here are the key aspects of these guidelines:

1. Specific Policies, Procedures, and Controls: The guidelines detail further policies, procedures, and controls that financial institutions should implement to mitigate and effectively manage ML/TF risks. These measures are crucial for ensuring that institutions have robust systems in place to identify, assess, and manage these risks effectively​​.
2. Complementing Existing Guidelines: These guidelines are designed to complement the EBA’s ML/TF Risk Factors Guidelines (EBA/GL/2021/02), providing more specific guidance on the appropriate policies and controls. This implies that the new guidelines build upon and refine the existing frameworks, making them more applicable and targeted to the contemporary challenges in ML/TF risk management​​.
3. Risk-Based Supervision: The guidelines include recommendations for risk-based supervision. This aspect emphasizes the need for supervisors to ensure adequate AML/CFT oversight in their sectors and supports financial institutions in adopting effective ML/TF risk management policies and procedures​​.
4. Addressing New ML/TF Risks and Legal Framework Changes: The revised guidelines also take into account recent changes in the EU Anti Money Laundering and Counter Terrorism Financing legal framework. They address new ML/TF risks that have been identified in EBA’s implementation reviews, thus ensuring that the guidelines remain relevant and effective in the evolving landscape of financial crimes​​.
5. Incorporation into Supervisory Practices: As of the notification date, these guidelines have already been incorporated into the supervisory practices and circulars of financial market authorities, signifying their importance and immediate relevance in the financial sector​​.

These guidelines represent a proactive approach by the EBA to enhance the financial sector’s resilience against money laundering and terrorist financing. By providing specific, detailed guidance and incorporating the latest developments in the legal framework and risk landscape, these guidelines aim to ensure that financial institutions are well-equipped to identify, assess, manage, and mitigate the risks associated with ML/TF in their operations, especially in the context of providing access to financial services.

Source: https://www.eba.europa.eu/regulation-and-policy/anti-money-laundering-and-e-money/guidelines-policies-and-controls-effective-management-mltf-risks-when-providing-access-financial