Communication: Strengthening the Union framework for prudential and anti-money laundering supervision for financial institutions

Further information:

This Communication sets out the necessary steps to further enhance the supervision of financial institutions in the Union for purposes of combating money laundering and terrorist financing. Decisive action by all authorities concerned will further promote the integrity of the Union's financial system and of the Banking Union in particular, contribute to financial stability and further reduce financial crime in the Union.

Background:

The Union's financial system is underpinned by a strong regulatory and supervisory framework that was fundamentally overhauled in recent years in order to safeguard the safety and soundness of institutions operating in the financial sector and the stability of the financial system. The reinforced framework now provides for a Banking Union, which is in the process of being completed.

The first two pillars of the Banking Union have been successfully established, placing the banking system within the participating Member States under the common responsibility of a Single Supervisory Mechanism and a Single Resolution Mechanism, underpinned by a single rulebook for the Union as a whole.

A strong and credible system to detect and fight money-laundering and terrorist financing is an essential part of this framework and well-functioning Banking and Capital Markets Unions. While the current system has been significantly enhanced in recent years, rapid legislative and non-legislative actions are needed in order to address a number of identified shortcomings.