Response to consultation on draft Guidelines on the role, tasks and responsibilities AML/CFT compliance officers
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More specifically, such items are mainly connected to the non-homogeneous transposition in the individual European AML/CFT regulations of the principles expressed in the AML directives, circumstance properly described in the Guidelines (“The requirements set out in Directive (EU) 2015/849 have been implemented unevenly across different sectors and Member States, and that they are not always applied effectively”). Please find below the list of the principal items of our interest:
- the daily dialogue between the local AML/CFT officers and those located in the head offices as well as in other countries where are located other branches in relation to the mutual evaluation of the compliance of new business projects with the relevant local AML/CFT regulations;
- the conduct by the local AML/CFT officers of the periodic AML/CFT self-risk assessment exercise must necessarily take into account and be coordinated with the head office’ ones, which, pursuant to equivalent regulatory provisions issued by their Supervisory Authorities, are characterized by analysis and assessment methods as well as reporting deadlines - quite often - significantly different from the local ones;
- the use, for the execution of those typical activities of the local AML/CFT Functions, of head office’s IT tools that are often not customized on the peculiarities - from a regulatory and operational point of view - of the Branches and, consequently, are to be implemented, on a continuous basis;
- the management by the local AML/CFT officers of the AML/CFT outsourcing agreements which, even if carried out on the basis of the head office’s policies, procedures and regulations, must necessarily comply also with the relevant local AML/CFT regulations under the direct responsibility of the local AML/CFT officers;
- the management by the local AML/CFT officers of the AML/CFT training plans which, even if carried out on the basis of the head office’s policies, procedures and regulations as well as (sometimes) IT tools, must necessarily take into account also the relevant local AML/CFT regulations under the direct responsibility of the local AML/CFT officers;
- the management by the local AML/CFT officers of any remediation plans addressed to the head offices by any relevant Supervisory Authorities;
- the management by the local AML/CFT officers of any remediation plans addressed to the Branches by their internal audit function, that are not always based on local AML/CFT regulatory requirements.
In view of the above, we take the opportunity of this public consultation to draw up your attention to the need, which is crucial for banks with cross-border operations (such as our Associates), for an enhanced level of harmonization of the AML/CFT regulations at European level, hoping that such harmonization will also take into account the corporate governance characteristics and operational activities of the Italian branches of foreign banks that we are representing.
4. Do you have any comments on Guideline 4.3 ‘Organisation of the AML/CFT compliance function at group level’?
In view of the peculiarities of our Associates, i.e. Italian branches of foreign banks operating in Italy (hereinafter, in general, the “Branches”), mainly characterized, from an organizational point of view, by a constant interaction with their head offices’ AML regulations and rules and, from an operational point of view, by cross-border operations, it is essential for us to draw up your attention to those items that our AML/CFT officers have to deal with on a daily basis in carrying out their activities.More specifically, such items are mainly connected to the non-homogeneous transposition in the individual European AML/CFT regulations of the principles expressed in the AML directives, circumstance properly described in the Guidelines (“The requirements set out in Directive (EU) 2015/849 have been implemented unevenly across different sectors and Member States, and that they are not always applied effectively”). Please find below the list of the principal items of our interest:
- the daily dialogue between the local AML/CFT officers and those located in the head offices as well as in other countries where are located other branches in relation to the mutual evaluation of the compliance of new business projects with the relevant local AML/CFT regulations;
- the conduct by the local AML/CFT officers of the periodic AML/CFT self-risk assessment exercise must necessarily take into account and be coordinated with the head office’ ones, which, pursuant to equivalent regulatory provisions issued by their Supervisory Authorities, are characterized by analysis and assessment methods as well as reporting deadlines - quite often - significantly different from the local ones;
- the use, for the execution of those typical activities of the local AML/CFT Functions, of head office’s IT tools that are often not customized on the peculiarities - from a regulatory and operational point of view - of the Branches and, consequently, are to be implemented, on a continuous basis;
- the management by the local AML/CFT officers of the AML/CFT outsourcing agreements which, even if carried out on the basis of the head office’s policies, procedures and regulations, must necessarily comply also with the relevant local AML/CFT regulations under the direct responsibility of the local AML/CFT officers;
- the management by the local AML/CFT officers of the AML/CFT training plans which, even if carried out on the basis of the head office’s policies, procedures and regulations as well as (sometimes) IT tools, must necessarily take into account also the relevant local AML/CFT regulations under the direct responsibility of the local AML/CFT officers;
- the management by the local AML/CFT officers of any remediation plans addressed to the head offices by any relevant Supervisory Authorities;
- the management by the local AML/CFT officers of any remediation plans addressed to the Branches by their internal audit function, that are not always based on local AML/CFT regulatory requirements.
In view of the above, we take the opportunity of this public consultation to draw up your attention to the need, which is crucial for banks with cross-border operations (such as our Associates), for an enhanced level of harmonization of the AML/CFT regulations at European level, hoping that such harmonization will also take into account the corporate governance characteristics and operational activities of the Italian branches of foreign banks that we are representing.