COMMUNICATION FROM THE COMMISSION Strengthening the Union framework for prudential and anti-money laundering supervision for financial institutions

The Commission have argued in this Communication that prudential supervisors may not sufficiently consider anti-money laundering/counter-terrorist financing (AML/CTF) policy, for reasons including different supervisory frameworks across Member States, and the lack of an EU legal regime in the area. The Commission make similar arguments in relation to European Central Bank (ECB) supervision of particularly significant financial institutions. The Commission therefore calls on the European Parliament and Council to endorse the actions set out in the Communication and to adopt the relevant legislative proposals by early 2019. These short-term proposals have been put forward by the Commission in the review of the European Supervisory Authorities (ESAs), on which a separate explanatory memorandum has been submitted.

For the longer-term, the Commission proposes to centralise AML supervision of banks and other financial institutions at EU-level. This follows on from significant AML failings in banks in certain EU states over the last twelve months, which have received significant media attention. These failings are not recurrent across all Member States, and have not taken place in UK-regulated banks or other financial institutions.

Topic  Financial Services 
Department  HMT 
Council Reference  12108/18 
COM Reference  COM(18)645 
SEC Reference   
PE Cons   
C Reference   

Associated file(s)

  1. 12108/18 - 476 KB - pdf
  2. EM 12108/18 - 141 KB - pdf

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