74. The prudential supervisor responsible for monitoring the outsourcing arrangements of …

The prudential supervisor responsible for monitoring the outsourcing arrangements of institutions as defined in the EBA Guidelines on outsourcing arrangements²⁶ should exchange information related to relevant outsourcing arrangements with the relevant AML/CFT supervisor. Such exchange should take place in particular in cases where the prudential supervisor has reasonable grounds to suspect that the outsourcing arrangements could impact the ML/TF risk exposure of the institution or its continuing compliance with its obligations under Directive 2013/36/EU and Directive (EU) 2015/849, including when:

• a. there are potential concerns about the proper oversight and governance arrangements with regards to the function outsourced and the impact on the ML/TF risks that the institution faces, the access to customer data, the reliability of records, or the allocation of tasks between the institution and the service provider, particularly when the provider is not an obliged entity under Directive (EU) 2015/849;
• b. the institution is outsourcing critical or important functions as referred to in section 4 of the EBA Guidelines on outsourcing arrangements that can affect the institution’s internal systems and control framework with regard to ML/TF risks, or if in the case of a default in service distribution by the service provider (or its provider in case of sub-outsourcing), this may lead to the institution’s failure to comply with its AML/CFT obligations.

AML/CFT supervisors

²⁶ EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02).

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/