Background
1. Involvement of an institution or its management in money laundering and terrorist financing (ML/TF) affects the reputation, financial soundness and viability of that institution, and can have a negative impact on the stability and integrity of the financial system in which the institution operates. This is why a strong regulatory and supervisory framework to prevent and detect money laundering and terrorist financing is an essential part of a well-functioning Banking and Capital Markets Union.
2. The current framework involves different authorities across the EU, with different supervisory tasks, powers and responsibilities. This includes authorities responsible for the supervision of compliance by institutions with requirements set out in Directive (EU) 2015/849 ('AML/CFT supervisors'), which are responsible for supervising whether institutions have put in place and maintain effective systems and controls to mitigate the risk that they may be used for ML/TF purposes. In
…