United Kingdom (and EU regulation)

EBA final report on guidelines on policies and procedures in relation to compliance management and the role and responsibilities of the AML/CFT compliance officer

On 14 June 2022, the European Banking Authority (EBA) published a final report containing draft guidelines setting out expectations of the role, tasks and responsibilities of the anti-money laundering / countering the financing of terrorism (AML/CFT) compliance officer and the management body.

In particular the draft guidelines cover:

The role and responsibilities of the management body in the AML/CFT framework and of the senior manager responsible for AML/CFT. Guideline 4.1 specifies the duties and tasks of the management body in the AML/CFT framework.
The role and responsibilities of the AML/CFT compliance officer. Guideline 4.2 specifies the need to appoint an AML/CFT compliance officer at a level which entails the powers to propose, on his/her own initiative, all necessary or appropriate measures to ensure the compliance and effectiveness of the internal AML/CFT measures to the management body in its supervisory and management function. Guideline 4.2 also specifies the suitability requirements for the role of AML/CFT compliance officer as well as explaining the roles and responsibilities of the person employed in this role.
The organisation of the AML/CFT compliance function at group level. Guideline 4.3 sets out specific roles and responsibilities and clarifies the reporting lines in respect of the role of the AML/CFT compliance officer function at a group level, in order to ensure that shortcomings in the AML/CFT framework affecting the entire group or a large part of the group are addressed effectively.

When finalised, the guidelines will apply to credit or financial institutions as defined in Article 3(1) and 3(2) of the Fourth Anti-Money Laundering Directive. The guidelines apply to all existing management body structures, irrespective of the board structure used (a unitary and/or a dual board structure and/or another structure) across Member States.

Going forward, the guidelines will be translated into the official EU languages and published on the EBA website. The deadline for Member State competent authorities to report whether they comply with the guidelines will be six months after the publication of the translations. The guidelines will apply from 1 December 2022.