The European Banking Authority (EBA) has published a consultation paper on plans for an anti-money laundering (AML) and counter terrorism financing (CTF) centralised database in the European Union.
The consultation on draft Regulatory Technical Standards (RTS) follows an EBA regulation in January 2020 requiring the EBA to set up and keep up to date a central database on AML/CFT weaknesses that competent authorities have identified across the EU.
The consultation paper on the draft RTS published last week specifies how weaknesses in AML/CFT should be defined, the type of information collected and how information will be communicated with the EBA. It also sets out the EBA will analyse and disseminate the information.
The EBA paper said the database will be an “early warning tool” to help authorities act before risk crystallise.”
It said: “Recent AML/CFT scandals across Europe have shown that cross‐border cooperation is essential to an effective approach to fighting ML/TF.
“Therefore, the EBA will use this database to facilitate the flows of information, by sharing information submitted by the competent authorities, on their request, with other competent authorities, by proactively share information with competent authorities where relevant and by responding to requests for information by competent authorities.”
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