5.1 Practical modalities for cooperation and information exchange

Effective and efficient means for cooperation and information exchange should be in place to support the cooperation and information exchange under these guidelines both in the domestic and cross-border context. Such means should ensure confidential information is exchanged through secure channels.

The information should be provided in writing, regardless of its format, be it paper, electronic communication or any other format. Information exchanges or requests for cooperation should include a clear identification of the institution or branch concerned including the Legal Entity Identifier code (LEI)¹⁹ where available (for a branch: the LEI of the parent).

¹⁹ LEI means a unique alphanumeric reference code based on the ISO 17442 standard assigned to a legal entity.

Where deemed necessary, as in case of urgency or emergency, the information should be requested, or provided on own initiative, verbally, by telephone or during a meeting between the relevant supervisors. Such a verbal exchange should be supported in writing as soon as feasible thereafter.

Where the prudential and the AML/CFT supervisor is the same authority or where the AML/CFT supervisor and the financial intelligence unit is the same authority, other processes than those identified in this section may be put in place as appropriate, ensuring at least the same degree of cooperation and information exchange as per in this section.

Relevance criteria for information to be exchanged

Prudential supervisors should consider information to be relevant for the exercise of AML/CFT supervisory tasks at least in situations where the information:

• a) gives the prudential supervisor reasonable grounds to suspect that in connection with an institution, ML or TF has been or is being committed or attempted or there is an increased risk thereof;
• b) indicates that the business activity or business model of an institution, or changes to it suggest that the institution may be exposed to an increased ML/TF risk;
• c) relates to shortcomings in an institution’s compliance with prudenti al requirements that may have a negative impact on the AML/CFT governance arrangements and internal systems and controls framework; or
• d) relates to an institution’s compliance with require ments set out in Directive (EU) 2015/849.

AML/CFT supervisors should consider information to be relevant for the exercise of prudential supervisory tasks at least, where the information may have an impact on the institution’s business model, internal governance arrangements, risk management framework, operational risk, adequacy of liquidity, institution- wide systems and controls, concerns the institution’s compliance with the prudential requirements as set out in Directive 2013/36/EU and Regulation (EU) No 575/2013 or it may affect the financial soundness or viability of the institution.

Prudential supervisors and AML/CFT supervisors should consider information to be relevant for the exercise of a financial intelligence unit ’ s tasks when that information could indicate possible ML or TF, and when it might help to identify ML/TF risks, trends, patterns or typologies.

Prudential supervisors should provide the relevant information to:

• a) the AML/CFT supervisors responsible for the supervision of the institution in the Member State where the institution is established or it is intended to be established, and
• b) the AML/CFT supervisors in the Member State where the EU parent undertaking is established if the institution belongs to a cross-border group or, in the case of a single institution with branches in other Member States, where the institution’s head office is located, or where an AML/CFT college has been established, the lead supervisor.

Prudential supervisors should inform each of the receiving AML/CFT supervisors about the other AML/CFT supervisors to whom they are providing or have provided information, where relevant.

AML/CFT supervisors should provide the relevant information to:

• a) the prudential supervisors responsible for the supervision of the institution in the Member State where the institution is established or it is intended to be established, and
• b) the consolidating supervisor if the institution belongs to a cross-border group, or in the case of a single institution with branches in other Member States, the prudential supervisor of the head office.

AML/CFT supervisors should inform each of the receiving prudential supervisors about the other prudential supervisors to whom they are providing or have provided information, where relevant.

Requests for cooperation and information

Prudential and AML/CFT supervisors should make a request for information or cooperation in writing, specifying at least the following:

• a. the type of information or cooperation that is requested;
• b. the purpose for which the information or cooperation is requested, including the specification of the legal provisions defining the supervisory tasks for which the requested information is deemed to be relevant; and
• c. for time-sensitive requests, the date by which the reply is expected, including the context and urgency of the request, if any.

Where the requested authority is unable to provide the requested information or cooperation by the date set by the requesting authority, an alternative date should be agreed on. In the event that the requested authority can provide a partial reply within the date indicated by the requesting authority, the requested authority should provide any information that it can so provide and agree on another date for the provision of any outstanding information.

Where a request for cooperation or information cannot be fulfilled in part or in whole, the requested authority should provide a detailed explanation in writing of the reasons why it is not possible or feasible to comply with the request.

Prudential supervisors and AML/CFT supervisors should, where possible, request the necessary information from the authority that originally gathered or created the information, if known.

Own initiative provision of information

Information deemed relevant for another authority should be transmitted on own initiative and without undue delay, unless it is obvious to the owner of the information that the potential receiving authority already holds that information.

Cooperation between prudential supervisors and AML/CFT supervisors

Prudential supervisors and AML/CFT supervisors should agree to set up a regular exchange of information where considered appropriate for the supervision of an institution or of cross-border groups or institutions with branches established in other jurisdictions. Where agreed to set up a regular exchange of information, prudential supervisors and AML/CFT supervisors should share with each other at regular intervals information that is considered to be relevant for the performance of th e other supervisor’s tasks.

Prudential supervisors and AML/CFT supervisors should notify each other of designated contact points to facilitate the transmission of relevant information and should consider putting in place a functional mailbox.

Where there are existing arrangements for cooperation and information exchange in place, the relevant prudential supervisors and AML/CFT supervisors should decide on whether the existing arrangements for exchanging information are sufficient to comply with the provisions set out in these guidelines or whether the authorities need to update these arrangements or otherwise supplement them with alternative arrangements in view of the modalities for cooperation and information exchange as set out in these guidelines.

Where the cooperation and information exchange is already taking place in prudential colleges and/or AML/CFT colleges, AML/CFT supervisors and prudential supervisors should use the colleges framework for the purposes of the cooperation and information exchange as set out in these guidelines, where deemed appropriate in view of the nature of the cooperation and the type of information to be exchanged.

Cooperation between prudential supervisors and the financial intelligence unit

Prudential supervisors should share with the financial intelligence unit information gathered or created in the performance of their supervisory activities that is relevant for the tasks of the financial intelligence unit in accordance with paragraph 20.

Where appropriate, prudential supervisors should seek from the financial intelligence unit information as set out in these guidelines that is relevant for the performance of their supervisory tasks.

Cooperation between AML/CFT supervisors and the financial intelligence unit

AML/CFT supervisors should share with the financial intelligence unit information gathered or created in the performance of their supervisory tasks that is relevant for the tasks of the financial intelligence unit in accordance with paragraph 20.

Where appropriate, AML/CFT supervisors should seek from the financial intelligence unit information as set out in these guidelines that is relevant for the performance of their supervisory tasks.