EU: EBA launches consultation to revise internal governance guidelines, focuses on compliance with AML rules
The European Banking Authority ('EBA') launched, on 31 July 2020, a public consultation aimed at revising its guidelines on internal governance for credit institutions. In particular, the draft guidelines on internal governance under Directive (EU) 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms ('the Draft Guidelines') highlight that internal governance includes all standards and principles concerned with setting credit institutions' objectives, strategies and risk management frameworks. Furthermore, the Draft Guidelines outline that combatting money laundering and terrorist financing is essential for maintaining stability and integrity in the financial system. In addition, the Draft Guidelines note that credit institutions should avoid setting up non-transparent structures and undertake a risk assessment to ensure that such structures are not connected with money laundering, terrorist financing or other financial crimes. Moreover, the Draft Guidelines include rules on internal alert procedures and whistleblowing, and state that such procedures must ensure the protection of the personal data of persons reporting the breach and persons allegedly responsible of the breach in accordance with the General Data Protection Regulation (Regulation (EU) 2016/679) ('GDPR').
The deadline for submission of comments is 31 October 2020.