On 1 March, the European Banking Authority (the ‘EBA’) published its final revised Guidelines on Money Laundering (ML) and Terrorist Financing (TF) risk factors. The revisions take into account changes to the EU Anti Money Laundering and Counter Terrorism Financing legal framework. New ML and TF risks are also addressed, including the ones identified by the relevant EBA’s implementation reviews. The revision supports the development of more effective and consistent supervisory approaches where evidence suggested that divergent approaches continue to exist.
The Guidelines are addressed to both financial institutions and supervisory authorities. They set out factors that firms should take into consideration when assessing the ML and TF risks associated with a business relationship or occasional transaction. Guidance is also provided on how financial institutions can adjust their customer due diligence measures to mitigate the ML and TF risks they have identified so as to make them more appropriate and proportionate.
For more information please contact Ioannis Sidiropoulos or your usual contact in Elias Neocleous & Co LLC.