Lysis Group hosted the AML & KYC Leaders networking event in Paris on the 30th of January (i.e. the day before “BREXIT Day”). The keynote speaker at the event was Dr David Doyle.
As a background David is an EU Policy adviser/author/lecturer, specialising in EU financial services regulation, covering the banking, insurance and securities sectors. David also acts as an EU policy expert on the European Council on Corporate Governance/Conference Board and has co-chaired the joint City of London Corporation/Paris Europlace Accounting Working Group.
During the debate David discussed guidance which has been issued by the European Supervisory Authority (ESA) to local supervisors to establish an AML/CFT College to coordinate the supervision of financial institutions that operate across multiple jurisdictions within the European Economic Area (EEA). The initiative behind the guidance is for each major bank within the EEA to be regulated by its own unique cross-border college of regulators depending on which countries the bank has major operations in. David Doyle expects the set-up of these colleges to occur over the next few years.
David also spoke about an initiative by the European Commission to establish a parallel regulatory body which will be supervised by the European Central Bank. Under the initiative all banks within the EU 27 countries (not just € zone) which are considered to be “systematically important”, that is to say a financial institution whose failure might trigger a financial crisis, will be closely monitored from a cross border level.
Another regulation which came into effect on the 1st of January 2020 by the EC is for the European Banking Authority (EBA) to take the lead in regulating financial institutions from an anti-money laundering and financial crime prevention across the EU. This regulation is a direct fallout from financial scandals such as Danske Bank in Estonia.
There are going to be a lot of changes within the EU in relation to the regulation of financial institutions and financial markets; whilst the implementation of these sweeping changes may take a while make no mistake that they are coming.
By Tom Griffiths, Associate Director at Lysis Group