The European Banking Authority (EBA) issued a public consultation on revised money laundering and terrorist financing (ML/TF) risk factors guidelines as part of a broader communication on AML/CFT issues.
The revised guidelines provide more details on terrorist financing risk factors and customer due diligence (CDD) measures including on the identification of the beneficial owner, the use of innovative solutions to identify and verify the customers’ identity. In addition, they set clear regulatory expectations of firms’ business-wide and individual ML/TF risk assessments.
These guidelines set out factors that firms should consider when assessing the money laundering and terrorist financing risk associated with their business, and with a business relationship or an infrequent transaction with any natural or legal person. They also set out how firms should adjust the extent of their CDD measures in a way that is commensurate to the ML/TF risk they have identified. The main focus is on risk assessments of individual business relationships and occasional transactions, but firms should use these guidelines mutatis mutandis when assessing ML/TF risk across their business in line with Article 8 of Directive (EU) 2015/849.
The factors and measures explained in these guidelines are not exhaustive and firms should consider other factors and measures as appropriate.
These guidelines are central to the EBA’s work to lead, coordinate and monitor the fight against money laundering and terrorist financing. Comments to the draft guidelines can be sent by clicking on the "send your comments" button on the EBA's consultation page.
Please note that due to the current Covid-19 situation the deadline for the submission of comments has been extended to 6 July 2020.
EBA press release can be found here.
Consultation paper can be found here.
Harneys recent blog post on EBA’s new role can be found here.