• Skip to primary navigation
  • Skip to main content
  • Skip to footer
CUBE announces its acquisition of The HubCUBE announces its acquisition of The HubCUBE announces its acquisition of The Hub

CUBE global

  • Products
        • RegPlatform product overviewOur enterprise product, providing regulatory intelligence for large, global financial institutions looking to tackle complex compliance.
        • RegAssure product overviewOur highly intuitive, seamless compliance product, that grows with your small or medium sized business.
        • View all products
  • Solutions
        • PrivacyGlobal governance for data privacy regulations, the world over
        • RecordsHolistic oversight of ever-growing regulations for records
        • CybersecurityAutomated workflows for up to date, relevant data on cyber
        • Technology riskEffective policies and controls to mitigate technology risk
        • Financial crime and AMLWatertight audit trails to show risk-based rationale
        • View all solutions
  • Resources
        • Resource hubLifting the lid on financial services, compliance, and regulation
        • Read

        • Case Studies
        • Blog posts
        • Reports
        • Brochures
        • Find

        • Compliance Corner
        • Compliance Confessions
        • ESG Conference
        • CUBE’s regulation game
        • Listen

        • Videos
        • Webinars
        • Podcasts
  • Partners
        • Advisory and consulting partnersEnhance your regulatory compliance offering with the entire suite of CUBE regulatory data.
        • Integration partnersCompliance is complex enough without over-complicated integration procedures.
        • Technology partnersAdd value to existing customer applications with a unified window into regulatory intelligence.
        • Partners overview
  • About us
        • About usThe story of who we are, how we got here and why we’re exceptionally proud of what we do
        • TeamThe visionaries and leaders powering CUBE’s success
        • NewsThe latest news from CUBE
        • CareersOur movement to transform regulatory data into regulatory intelligence
        • ContactWant to know more? Get in touch
  • Request a demo
Customer login
Home » Resources » EBA consults on the role of compliance officers
The EBA considers the role of compliance officers

August 4, 2021

Estimated reading time: 3 minutes

EBA considers the role of AML/CFT compliance officers in new consultation  


The European Banking Authority has launched a consultation on new guidelines that determine the tasks and responsibilities of compliance officers within anti-money laundering (AML) and countering the financing of terrorism (CFT).

The inconsistent role of the compliance officer, according to EU Directives

The compliance officer and their functions are pivotal to AML and CFT efforts across financial services, which is why EU Directives require that AML/CFT compliance officers are appointed at management level. Moreover, such Directives also insist that management bodies within financial institutions have highlighted an individual who is responsible for the implementation of any relevant laws, regulations and administrative tasks related to AML/CFT compliance.

Despite the importance of compliance officers and their function, the EBA notes that the requirements of Directive (EU) 2015/849 “have been implemented unevenly across different sectors and Member states”, adding that it can have “adverse consequences for the integrity of the EU’s financial system.

With the critique for inconsistency looming, the EBA has published draft guidelines in search of an industry standard and “a common understanding, by competent authorities and financial sector operators, of financial sector operators’ AML/CFT governance arrangements”.

What do the draft guidelines say?

The draft guidelines set out plans for the entirety of AML and CFT across the EU, making this the first consultation to do so. In essence, the guidelines look to standardise expectations of the roles and responsibilities of compliance officers and managers under the AML/CFT umbrella, and how they interact across the board, including at a group level.

More specifically, the four key topics areas of focus are:

  1. Role and responsibilities of the management body in the AML/CFT framework and of the senior manager responsible for AML/CFT
  2. Organisation of AML/CFT compliance function at group level
  3. Role and responsibilities of AML/CFT compliance officer
  4. Review of AML/CFT compliance function by competent authorities

What will happen next?

The consultation runs until 2 November 2021. After which, all contributions will be published. Once the guidelines are adopted, they will apply to all financial service organisations that fall within the scope of the AML Directive.

CUBE comment

The EBA’s consultation says that a “common understanding, which is applied consistently and enforced as necessary, will be key to strengthening the EU’s AML/CFT defences.”

As a company focussed on capturing the entire world of regulatory content, analysing, structuring it and presenting it in a standardised way, the standardisation of regulations for compliance is a topic close to our hearts at CUBE. Our CEO and Founder, Ben Richmond, recently sat down with The Banker’s James King to talk about harmonising global compliance standards, in fact.

It’s a theme that is becoming prevalent across financial regulation – the idea that lack of regulatory standards is no longer just inconvenient but becoming a barrier to effective compliance and regulation. The EBA’s recent RegTech Report, for instance, highlighted that a “lack of common regulatory standards could pose barriers for wider market adoption of RegTech.” This was echoed in ESMA’s recent report, which found that MiFID II non-compliance had quadrupled in a year. This could easily be attributed in part to a lack of consistency and standard guidance. 

Whether regulators are looking to standardise roles and responsibilities or regulations more generally, it is becoming clear that in a globalised world, with fewer technical ‘borders’ (owing chiefly to new and emerging technology and innovation) legacy regulations are becoming harder to implement. The regulations no longer fit the mould that made them. The same can be said for legacy regulatory compliance solutions. The only solution – at least in my opinion – is to innovate.

Society, financial services, and the way customers engage with financial services have all turned to advanced technology. This technology transcends traditional jurisdictions, meaning financial institutions must ‘go global’ in a way they would not have had to historically. The only solution is for financial services and regulators to level up their technology to meet demand… or the system risks falling apart.

Streamline your compliance systems with CUBE.

Find out more

 


Related resources
View all resources
Find out about recent anti money laundering crimes and how RegTech can help
Blogs

Poor AML policies and procedures cost banks millions

Sylvia Yarbough whispers to a colleague about the key to customer complaints
Blogs

Compliance Confessionals – The Policy on Policies

Lessons on how to reach good Governance at your firm
Blogs

‘G’ for Good Governance

Learn about the Financial Services and Markets Bill (FSMB)
Blogs

How the FSMB will transform UK financial markets


Want CUBE updates and latest industry news sent straight to your inbox?

Footer

Add CUBE logo here

  • Products
    • Partners
    • Solutions
  • Resource hub
    • Blogs
    • Reports
    • Brochures
    • Compliance Corner
    • Webinars
    • Podcasts
    • Videos
  • Behind CUBE
    • About us
    • Meet the team
    • Careers
    • News
    • Contact us
  • The legal bits
    • Privacy policy
    • Cookie policy
    • Terms of use
    • Accessibility
Follow us:
  • LinkedIn
  • Twitter
  • YouTube

© 2023 CUBE Content Governance Global Limited

  • English
  • US

envelope

Want CUBE updates and latest industry news sent straight to your inbox?

Sign up to our Newsletter here