EBA-Guidelines on role and responsibilities of the AML/CFT compliance officer

EBA-Guidelines on role and responsibilities of the AML/CFT compliance officer

The European Banking Authority (EBA) has published guidelines detailing the roles and responsibilities of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officers and the management body of credit or financial institutions. These guidelines aim to ensure uniform interpretation and proper implementation of AML/CFT internal governance arrangements across the EU, aligning with the EU Directive’s requirements for preventing the financial system’s use for money laundering or terrorist financing (ML/FT).

Key aspects of the guidelines include:

1. Roles and Responsibilities: The guidelines clearly define the roles, tasks, and responsibilities of the AML/CFT compliance officer and the management body. They specify the need for credit or financial institutions to appoint a member of their management body to be ultimately responsible for AML/CFT obligations, detailing this person’s tasks and functions.
2. AML/CFT Compliance Officer’s Role: The guidelines describe the roles and responsibilities of the AML/CFT compliance officer, particularly when appointed by the management body following proportionality criteria.
3. Group AML/CFT Compliance Officer: For institutions that are part of a group, the guidelines recommend appointing a group AML/CFT compliance officer and clarify their tasks and responsibilities.
4. Common Understanding: The aim is to foster a common understanding among competent authorities and credit or financial institutions of AML/CFT governance arrangements. These guidelines supplement but do not replace the EBA’s broader guidelines on governance arrangements and suitability checks.
5. Legal Basis and Background: Drafted in line with the EBA’s mandate to lead, coordinate, and monitor the fight against ML/TF in the EU financial sector, these guidelines respond to the European Commission’s request in its 2019 Supra-National Risk Assessment (SNRA) to clarify the role of AML/CFT compliance officers.
6. Importance of AML/CFT Governance Arrangements: Effective AML/CFT governance is crucial for the private sector’s role in preventing and fighting ML/TF. The guidelines address past differences in the interpretation and uneven implementation of Directive (EU) 2015/849 requirements, which had implications for the integrity of the EU’s financial system.

Source: https://www.eba.europa.eu/eba-publishes-guidelines-role-and-responsibilities-amlcft-compliance-officer