FCC RegUpdate

The European Banking Authority (EBA) released its Q2 2023 Risk Dashboard, which is based on a sample of 164 banks, covering over 80% of the EU/EEA banking sector by total assets at the highest level of consolidation. Country aggregates also include large subsidiaries.

To know more, read here https://www.fcctimes.com/2023/10/10/ebas-q2-2023-risk-dashboard-highlights-improved-bank-profitability-and-capital-ratios-amidst-ongoing-uncertainty/

Key AML/CFT Findings:

  • Between June and August, 143 serious AML/CFT deficiencies were reported in 57 institutions, along with 50 ‘corrective measures.’
  • Most of these deficiencies are related to 31 credit institutions. The second-highest number of reported deficiencies comes from 6 Electronic Money Institutions (EMIs). It’s worth noting that this distribution might be due to supervisory priorities and timeframes, rather than changes in entities’ AML/CFT control environments.
  • The majority of material weaknesses are associated with institutions’ customer due diligence (CDD) policies and procedures (92), especially weaknesses in institutions’ approaches to transaction monitoring. Other material weaknesses include systems and controls (36), suspicious transaction reporting (29), and risk management systems (12).
  • Fines and administrative pecuniary sanctions were the most common measures applied. The most severe measure applied during this period was the withdrawal of authorization for a bureau de change.