EBA Unveils New Central Database for AML and CFT

The European Banking Authority (EBA) has launched EuReCA, a new central database for anti-money laundering and counter-terrorism financing.

According to the EBA, EuReCA will be central to coordinating efforts by competent authorities and the EBA to prevent and counter money laundering and terrorist financing risks in the EU.

EuReCA will hold information on material weaknesses in individual financial institutions in the EU that competent authorities have previously identified. Competent authorities will also be reporting the measures they have imposed on financial institutions to rectify those weaknesses.

Such weaknesses include the lack of adequate AML/CFT policies and procedures including the absence of transaction monitoring at the group level and the absence of policies and procedures for high-risk customers, which can increase the ML/TF risk associated with the financial institution.

In addition, EuReCA includes internal audit filings identified by a prudential authority during on-site inspections about which the management body of the senior management appeared to have been informed and decided not to remediate.

The EBA will use information from EuReCA to inform its review of ML/TF risks affected the EU financial sector. Furthermore, it will also share information from EuReCA with competent authorities as appropriate to support them at all stages of the supervisory process should specific ML/TF risks or trends emerge.

Article credit: https://member.regtechanalyst.com/eba-unveils-new-central-database-for-aml-and-cft/