The Joint Committee of the European Supervisory Authorities (ESAs) (the European Banking Authority, European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority) has published two consultation papers on anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines.
The consultation papers cover:
- risk factors guidelines. These guidelines set out factors firms should consider when assessing the money laundering and terrorist financing risk associated with a business relationship or occasional transaction. They also set out how firms can adjust the extent of their customer due diligence measures in a way that is commensurate to the money laundering and terrorist financing risk they have identified; and
- risk based supervision guidelines. These guidelines are addressed to EU competent authorities responsible for supervising credit and financial institutions’ compliance with applicable AML/CFT obligations. The guidelines aim to provide a common European basis for compliance with the Financial Action Task Force’s recommendations on risk-based AML/CFT supervision and build the ESAs’ Preliminary report on anti-money laundering and counter financing of terrorism Risk Based Supervision, which was published in October 2013.
The deadline for comments on both consultation papers is 22 January 2016.