News EBA launches the EU's central database for anti-money laundering and counter-terrorism financing 02/02/2022

The European Banking Authority (EBA) launched its central database for anti-money laundering and counter-terrorist financing (AML/CFT).
This European reporting System for material CFT/AML weaknesses, EuReCA, will contain information on material weaknesses in individual financial institutions in the EU that competent authorities have identified. Competent authorities will also be reporting the measures they have imposed on financial institutions to rectify those material weaknesses.

Examples of material weaknesses include the lack of adequate AML/CFT policies and procedures including the absence of transaction monitoring at the group level and the absence of policies and procedures for high-risk customers, which increase the ML/TF risk associated with the financial institution.

The EBA will use information from EuReCA to inform its view of ML/TF risks affecting the EU financial sector. It will also share information from EuReCA with competent authorities as appropriate, to support them at all stages of the supervisory process and, in particular, should specific ML/TF risks or trends emerge. In this regard, EuReCA will act as an early warning tool, which will help competent authorities to act before ML/TF risk crystallise.

You can consult the document here, or click on the link to the EBA page.