New database launched by the European Banking Authority will strengthen AML
Yesterday, the European Banking Authority (EBA) launched its central database for anti-money laundering and counter-terrorist financing (AML/CFT) . The European reporting System for material CFT/AML weaknesses, EuReCA, will be central to coordinating efforts by competent authorities and the EBA to prevent and counter money laundering and terrorist financing (ML/TF) risks in the Union.
“- EuReCa is a formalisation of work that is already taking place, and with strengthened supervision this is an important step forward for the financial sector at large. Supervisory authorities will no longer work in silos,”Ronny Gustavsson, Head of AML at FCG
EuReCA will contain information on material weaknesses in individual financial institutions in the EU that competent authorities have identified. Competent authorities will also be reporting the measures they have imposed on financial institutions to rectify those material weaknesses.
“-With EuReCa, there will be new possibilities for risk-based work, compared to the remits within national AML supervisory authorities. As we saw in the case of the Nordic banks and their Baltic operations, monitoring transactions of companies with operations in several jurisdictions has been a weakness. Authorities will now get a much-needed supranational overview of cross-national companies, and will be able to conduct assessments based on comparative analysis across the EU,”Ronny Gustavsson