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The European Banking Authority (EBA) has revealed more details about its central database on anti-money laundering and counter-terrorism financing (AML/CTF) in the EU, a key tool for coordinating efforts to counter illicit finance in the bloc.
EuReCA, or the European Reporting system for material CFT/AML weaknesses, will contain information on weak points identified at individual financial institutions that make them vulnerable to money laundering.
Competent authorities will have to submit such information to the EBA, which will use the central database to monitor potential money laundering risks within the EU. Should a particular risk or trend emerge, the EBA will share information with national authorities to support their supervisory efforts.
“EuReCA will be an early warning tool, which will help competent authorities to act before the ML/TF risk crystalise. As such, EuReCA will be key to strengthening AML/CFT supervision and to coordinating efforts to prevent and counter ML/TF in the EU,” the EBA said.
The bank published draft Regulatory Technical Standards (RTS) on the central database on December 20, laying out details on how the database will work and which information is required to be shared.
It specifies when weaknesses are material, what type of information have to be reported, how information will be collected and how the EBA will analyse and share the information contained in EuReCa.
The draft also sets out rules to ensure confidentiality and the protection of personal data within the database.
The RTS will now be sent to the European Commission for approval. Once approved, the standards will be directly applicable in all member states.
The EBA estimates that EuReCA will start to receive data in the first quarter of 2022.
