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Basel Committee on Banking Supervision Publishes Guidelines on AML/CFT Supervision

The Basel Committee on Banking Supervision (BCBS) has published their consultation, Introduction of Guidelines on Interaction and Cooperation Between Prudential and AML/CFT Supervision, in order to amend their previously published guidelines entitled, Sound Management of Risks Related to Money Laundering and Financing Terrorism. The guideline aims to outline methods to implement mechanisms that will facilitate cooperation between prudential and AML/CFT supervisors, including: recommendations and principles for information exchange on authorization procedures of banks, on-going supervision, and enforcement actions. “The proposed changes to the Sound management of risks related to money laundering and financing of terrorism include a new provision in "The role of supervisors" section that recommends establishing an effective cooperative system and a supplementing annex with specific recommendations and descriptive examples to facilitate supervisory cooperation.”

WOCCU is analyzing this proposal to ensure that the role of credit unions is adequately contemplated in the guidelines and that appropriate direction to national-level regulators to consider proportionality when implementing the guidelines is provided.  BCBS is accepting comments on the consultation until February 6, 2020 and the document can be found here.