Joint Guidelines to anti-money laundering

Final Joint Guidelines has published on the characteristics of a risk‐based approach to anti‐money laundering and terrorists financing supervision (AML/CFT), and the steps to be taken when conducting supervision on a risk-sensitive basis. Regard to the content of the Joint Guidelines, the European Supervisory Authority (ESA) had conducted consultation since 2015.

In accordance with Article 16(3) of the ESAs’ Regulations, competent authorities and financial institutions must make every effort to comply with the Guidelines. Competent authorities should apply the following four steps as part of an effective AML/CFT risk based supervisory (RBS) model:

Step 1 – Identification of ML/TF risk factors;
Step 2 – Risk assessment;
Step 3 – Supervision;
Step 4 – Monitoring, review and follow‐up.

Competent authorities should note that the RBS is not an oneoff exercise, but an ongoing and cyclical process.

Source: EBA