10. Title 10. Application of the SREP to cross-border groups

This title addresses the application of the SREP procedures and methodology as specified in these guidelines in relation to cross-border groups and their entities. It also provides links with the joint assessment and decision process to be carried out pursuant to Article 113 of Directive 2013/36/EU and the Commission Implementing Regulation (EU) No 710/2014.

In the SREP, competent authorities should also consider the potential ML/TF risks and risks of non-implementation and evasion of targeted financial sanctions, taking into account input received from the AML/CFT competent authority of the Member State where a parent undertaking is established as well as AML/CFT supervisors responsible for the AML/CFT supervision of the group’s establishments in different jurisdictions, in particular the assessments of ML/TF risks, material weaknesses and breaches of AML/CFT legislation that are linked to the cross-border banking group structure.

When assessing prudential implications of ML/TF risks and risks of non-implementation and evasion of targeted financial sanctions in the SREP for a cross-border group, competent authorities should leverage the information obtained through bilateral engagements with relevant AML/CFT competent authorities in accordance with the AML/CFT Cooperation Guidelines and through their participation in AML/CFT colleges⁵⁹ and prudential colleges.

⁵⁹ AML/CFT colleges as defined in the Joint guidelines on cooperation and information exchange for the purpose of Directive (EU) 2015/849 between competent authorities supervising credit and financial institutions (‘The AML/CFT Colleges Guidelines’ and in Article 2(8) of Directive (EU) 2024/1640.

10.1. Application of the SREP to cross-border groups

10.2. SREP capital assessment and institution-specific prudential requirements

10.3. SREP liquidity assessment and institution-specific prudential requirements

10.4. Application of other supervisory measures