A. General provisions

1. Effective cooperation and exchange of information among prudential supervisors and AML/CFT supervisors that are responsible for banks (hereinafter “supervisors”) are essential to address and mitigate ML/FT risk, to maintain the integrity of the banking system and to ensure the prudential soundness and stability of banks.

2. Supervisors should ensure efficient and effective cooperation between the prudential supervisory function and AML/CFT supervisory function (hereinafter “supervision”), regardless of the jurisdictional institutional arrangement for the respective functions. This cooperation may take place within a national authority undertaking multiple functions, between different national authorities responsible for different functions and also between different authorities in the cross-border context. This cooperation must not negatively impact the independence of either supervisory function in fulfilling its mandate. Moreover, this cooperation must not result in different supervisory functions unduly duplicating efforts.

3. Prudential supervision aims to ensure compliance by banks with prudential requirements, the safety and soundness of banks, and the stability of the banking system, including the authorisation of a bank, assessment of qualifying holding of bank shares, fit and proper tests of major shareholders, the board of directors and members of senior management, and ongoing assessment of the adequacy of the governance, organisational structure, risk management and internal control systems of a bank. For the purposes of these guidelines, the function that carries out prudential supervision over banks is referred to as the “prudential supervisor”.