What is European Banking Authority (EBA)?

The European Banking Authority (EBA) aims to protect the financial stability, integrity, efficiency, and orderly functioning of the banking sector in the EU. The European banking authority is mandated to assess risks and vulnerabilities in the EU banking sector. There are also some EBA regulations. The European Banking Authority was established in 2011 by taking over the responsibilities of the European Banking Supervisory Board. It was created by the European Parliament and the Council of the European Union to combat financial crimes as an institution above national regulators. Headquartered in England, EBA is the most authoritative regulator of the banking industry. After the UK leaves the European Union, it is planned to shift the central position of EBA to a different European city due to Brexit. The city where EBA is expected to move is Paris.


What are the Goals of EBA?

The main objectives of EBA, which works with the national supervisory authorities of EU countries to assure an adequate level of regulation and supervision in the European banking sector; 

  • To protect the integrity of the financial sector, 
  • To regulate the control of financial institutions, 
  • To protect consumers, investors and depositors, Stabilize the financial system, 
  • To safeguard public values by ensuring market transparency, 
  • To monitor the quality of new tools published by institutions.


What Are The Responsibilities of EBA?

EBA has many tasks and duties. However, it is its main task to contribute to the creation of the Single European Rulebook in banking by adopting the Binding Technical Standards (BTS) and Guidelines. The Single Rulebook aims to provide factors such as a single set of harmonized prudential rules for financial institutions across the EU and high protection for depositors, investors, and consumers. In addition, the EBA is tasked with assessing risks for the EU banking sector through regular risk assessment reports. It has the following responsibilities:


  • Investigating alleged wrong or inadequate application of EU law,
  • Making decisions for financial institutions when emergencies occur,
  • Mediation in cross-border situations to resolve disputes between competent authorities,
  • Operating as an independent advisory body for the European Parliament, the Commission,
  • Promotes market fairness and transparency for consumer finance products in the domestic market.

eba, eurupean-banking-authority, regulation, aml, anti-money-laundering, aml-regulations, money-laundering


Structure of EBA


THE BOARDROLES
Management Board 
 The board of directors consists of a chairman and six members elected from the supervisory board, who must act in the interests of the European Union. The board of directors is tasked with bringing the mission and duties into compliance with the legislation, preparing the work program, and approving internal operational decisions. Decisions in the executive board are made by majority vote.
Chairperson
 The supervisory board elects a chairman to represent EBA. The duties of the presidency, which can be extended once and last for five years, are to prepare the activities of the supervisory board and to chair the audit and committee of directors meetings.
Executive Director
The Executive Director, like the president, is elected by the supervisory board and is responsible for the management of EBA. It ensures that the annual work program is carried out in accordance with the instructions given by the supervisory board.
Joint Board of Appeal
EBA is a common organ of ESMA and EIOPA. It consists of six members tasked with adjudicating appeals against individual decisions of the EBA. They act in accordance with the findings of the Court of Justice of the European Union. Employees of EBA and other institutions affiliated with EBA are banned from the board.
Banking Stakeholder Group 
The Banking Stakeholder Group helps facilitate consultation with stakeholders on the EBA's binding technical standards, guidelines, and recommendations. It consists of 30 members, and at least four are academy representatives.



Anti-Money Laundering and Countering the Financing of Terrorism

As part of its responsibility, The European Banking Authority works to prevent the European financial system from being used for money laundering and terrorist financing (ML/TF). EBA's studies on this issue are as follows:

  • Supporting its effective implementation by financial institutions in the EU to promote a practical risk-based approach to AML/CFT,
  • Making strong risk-based AML/CFT audits, supporting the development of a common understanding of ML/TF risks,
  • Promoting practical cooperation and information exchange between all relevant authorities in a manner that ensures that risks are addressed,
  • Identifying vulnerabilities in the authorities' approach to AML/CFT auditing,
  • They are monitoring the implementation of the EU's AML/CFT policies and standards to take steps to reduce ML/TF risks before they happen.


Which Sectors Are Covered by EBA Regulations?

The European Banking Authority regulates and monitors the following institutions and other similar institutions in Europe:

  • Investment firms
  • eCommerce Merchants
  • Credit institutions
  • Banks
  • Lending institutions
  • Insurance undertakings


Sanction Scanner Solutions to Comply with AML Regulations 

It might be challenging to comply with AML regulations for companies. Sanction Scanner offers two solutions strengthened with APIs that make all processes easier, faster and more sustainable. 

AML Name Screening 

Scan customers in over 3000 Global Sanction Lists, PEPs List and Adverse Media, updated in 15 minutes. 

AML Transaction Monitoring 

Monitor transactions in real-time to detect, stop and investigate suspicious transactions. 

You Might Also Like