The European Banking Authority (EBA) released Guidelines on Tuesday that define the role and responsibilities of anti-money laundering compliance officers and banking managers.
The guidelines aim to ensure that AML/CFT internal governance arrangements are interpreted and implemented consistently across the EU.
The guidance complies with the EU Directive on the prevention of money laundering and terrorist financing through the financial system (ML/FT).
According to the EBA, the guidelines establish clear expectations for the AML/CFT compliance officer's role, tasks, and responsibilities, as well as the management body's role, tasks, and responsibilities.
According to the EBA, "they specify that credit or financial institutions appoint one member of their management body who will ultimately be responsible for the implementation of the AML/CFT obligations and clarify the tasks and functions of that person."
When an AML/CFT compliance officer is appointed by the management body in accordance with the proportionality criteria, the guidance also describes the roles and responsibilities of that person.
"When the credit or financial institution is part of a group, the Guidelines prescribe that a group AML/CFT compliance officer should be appointed and clarify this person’s tasks and responsibilities," according to the EBA.
"These Guidelines aim to create a common understanding, by competent authorities and credit or financial institutions, of credit or financial institutions’ AML/CFT governance arrangements. They complement but do not replace relevant guidelines issued by the EBA on wider governance arrangements and suitability checks, " according to a statement from the Authority.
THESE ARE THE FULL GUIDELINES: https://www.eba.europa.eu/eba-publishes-guidelines-role-and-responsibilities-amlcft-compliance-office
By fLEXI tEAM