EBA guidelines on governance and the role of AML/CFT compliance officers will apply from 1 December 2022

The European Banking Authority (EBA) published its final report containing guidelines on policies and procedures in relation to compliance management and the role and responsibilities of the anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officers under 4AMLD.

The guidelines will apply from 1 December 2022 to all existing management body structures, irrespective of the board structure used. They are designed to complement other guidelines issued by the ESAs on wider governance arrangements and suitability checks.

The guidelines set out detailed expectations of:

• The role and responsibilities (and duties and tasks) of the management body in the AML/CFT framework, in its supervisory (non-executive) and management (executive) functions. The guidelines specify that financial institutions should appoint one member of the management body (or, where no management body is in place, a senior manager) who will ultimately be responsible for the implementation of AML/CFT obligations, and clarify the tasks and functions of that person.
• The level, suitability requirements, reporting line, role, tasks and responsibilities of the AML/CFT compliance officer.
• Importantly, the provisions in these guidelines are to be applied in a manner that is effective and proportionate to the financial institution’s type, size and internal organisation, the nature, scope and complexity of its activities, and the ML/TF risks to which it is exposed.
• The guidelines provide that a management body may decide not to appoint a separate AML/CFT compliance officer and require that the reasons be justified and documented, and explicitly refer to minimum criteria. Outsourcing and group AML/CFT structures are also covered.

For more information please contact a member of the Asset Management & Investment Funds team.

Date published: 30 June 2022