On 9 November 2023, the European Commission published Commission Delegated Regulation of 9 November 2023 supplementing Regulation (EU) No 1093/2010 of the European Parliament and of the Council with regard to regulatory technical standards specifying the materiality of weaknesses, the type of information collected, the practical implementation of the information collection and the analysis and dissemination of the information contained in the anti-money laundering and counter terrorist financing (AML/CFT) central database referred to in Article 9a(2) of that Regulation.
The EBA is required to set up and maintain a central AML/CFT database. This database will contain information on material weaknesses in individual financial sector operators that make them vulnerable to money laundering or terrorist financing. Member State competent authorities (NCAs) have to report material weaknesses that they have identified, as well as the measures they have taken to address those material weaknesses.
These draft technical standards specify when weaknesses are material. They also set out which information NCAs have to report, how they have to report it, and how the European Banking Authority will analyse this information and make it available to NCAs. They also set out the rules that will apply to ensure confidentiality and the protection of personal data contained in the database.
The Delegated Regulation will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.