07 December 2012

EBA: Joint Committee publishes report on the implementation of AML/CTF requirements for e-money in the EU

The Joint Committee of the European Supervisory Authorities (EBA, ESMA and EIOPA) has today published a report on the application of anti-money laundering and counter-terrorist financing obligations to - and the AML/CTF supervision of - e-money issuers, agents and distributors in Europe.

The report:

• provides an overview of Member States’ implementation of EU anti-money laundering (AML) and counter-terrorist financing (CTF) requirements in relation to the issuance, distribution and redemption of electronic money;
• identifies areas where differences in the national implementation of European legislation could affect the integrity of the AML/CTF regime; and
• recommends action by the European Commission to address inadequacies in the legislation and its implementation during the current revisions of the 2nd E-money Directive and 3rd Money Laundering Directive.

The report reveals that significant differences existed in the national implementation of the 2nd E-Money Directive (2nd EMD) and in the application of AML/CTF legislation to e-money issuers, their agents and distributors.

These differences are caused by inadequate or ambiguous provisions in the 2nd EMD and 3rd Money Laundering Directive, including such issues as:

• the definition of the point in time where e-money is issued;
• the definition of e-money agents and distributors;
• the application of passporting rules and guidelines to e-money entities; and
• the distribution of powers between home and host AML/CTF supervisors.

Summary

Full report

© EBA