On 24 July 2019, the European Banking Authority (EBA) published an opinion on the link between money laundering and terrorist financing concerns and prudential objectives. This opinion forms part of the EBA's ongoing work to strengthen the fight against money laundering and terrorist financing in Europe and responds to a request in the Council's Anti Money Laundering Action Plan of 2018.
The EBA highlights that money laundering and terrorist financing (ML/TF) can have a significant, adverse impact on an institution's safety and soundness. This is why prudential supervisors need to be aware of, and act on, ML/TF risks.
The EU Council made clear in its action plan of 2018 that the link between ML/TF risk and prudential objectives means that prudential and AML/CFT supervisors must cooperate closely and share information in the discharge of their respective functions. Where institutions operate across borders, the EBA expects supervisors to cooperate with their international counterparts.
The press release can be found here.
The opinion can be found here.