The European Banking Authority (EBA) has called on financial institutions to ensure compliance with sanctions against Russia and support access to basic payment accounts for refugees.
It is working with relevant authorities to ensure the full implementation by all financial institutions of the sanction measures. As part of this, it is collecting, and filtering queries related to the scope of the measures and send them to the EU Commission for answers.
The EBA said it would closely monitor and assess the situation to inform decisions and actions needed to mitigate short and medium-term risks.
Under the rules, financial institutions are required to assess the adequacy and effectiveness of internal controls and governance to ensure compliance with measures and adapt their systems where needed.
The regulator also stated that competent authorities are working to ensure adequacy of internal controls and governance in supervised entities. As part of its work, it is also working with Financial Intelligence Units (FIUs) and law enforcement to spot and raise awareness of fraud and financial crime.
Finally, the regulator reminded competent authorities that displaced persons from Ukraine have access to open and use payment accounts with basic services. Financial institutions should use a risk-based approach to when offering financial products in this situation.
Copyright © 2022 FinTech Global
