The European Banking Authority (EBA) has released its third Report on the efficacy of AML/CTF colleges.
The report concluded that there have been marked strides made by competent authorities in enhancing the functioning of AML/CFT colleges, even though a number have not yet attained full maturity.
AML/CFT colleges are set up as enduring mechanisms aimed at fostering improved collaboration amongst various supervisory bodies responsible for the oversight of cross-border institutions. Up until 31 December 2022, the EBA had records of 229 fully functional AML/CFT colleges. However, another 54 colleges have not yet convened their inaugural meeting.
The EBA’s Report, which details observations derived from the monitoring of AML/CFT colleges in 2022 by its staff, indicates a commendable effort on the part of college members to bolster the effectiveness of these colleges. Notably, members are now adopting a more systematic approach towards the organisation of these colleges. This enhanced approach has led to more valuable and actionable information being shared compared to past years.
There’s also been an increase in participation from prudential supervisors and financial intelligence units (FIUs) in a larger number of these colleges. This has equipped supervisors with a richer set of relevant data, enabling them to better supervise institutions that operate across borders. In certain colleges, members have begun to pinpoint common challenges and are working collectively to tackle them.
However, it’s not all positive. The Report indicates that about 50 AML/CFT colleges have yet to conduct their first meeting. Some colleges are still not sharing crucial information adequately. The integration of third country authorities into the colleges remains problematic, with only a handful able to participate in meetings.
EBA’s Report underscores effective practices that could assist competent authorities in navigating these obstacles and further enhance the effectiveness of AML/CFT colleges in the coming years.
Zodia Custody CEO Julian Sawyer said, “The recent findings by the EBA demonstrate the evolving landscape of regulatory compliance. Collaborative efforts among supervisory bodies are crucial in the fight against financial crime.”
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