144. When the business plan envisages the setting up of structures in other jurisdictions …

When the business plan envisages the setting up of structures in other jurisdictions, competent authorities should assess the effective compliance of such jurisdictions with ‘EU and international standards on tax transparency, AML and CFT’⁵¹ . They should also assess the extent to which the envisaged structure serves an obvious and lawful economic purpose, or the extent to which it could be used to hide the identity of the ultimate beneficial owner, or whether the business strategy (including the customer’s request underlying the setting up of the structure) gives rise to concern. Competent authorities should assess whether the structure impedes appropriate oversight by the institution’s management body or the institution’s ability to manage the related risk, and whether the structure poses obstacles to effective supervision by competent authorities⁵² .

9.3.1 Corporate values, risk culture, code of conduct and governance policies

⁵¹ Paragraph 76, letter (a) of the EBA Guidelines on internal governance reads: ‘the extent to which the jurisdiction in which the structure will be set up complies effectively with EU and international standards on tax transparency, anti-money laundering and countering the financing of terrorism;’.

⁵² Paragraph 76 letters a) to f) of the EBA Guidelines on internal governance .

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/