The EBA releases “EuReCA”, the EU’s central database for combating money laundering and terrorist financing
The EBA has released “EuReCa”, based on the provisions of article 9a (1) and (3) of the EBA Regulations, i.e. a centralized database with the aim of coordinating the activities carried out by the competent authorities and the EBA in relation to AML/CFT (anti-money laundering and countering the finance of terrorism) in the European Union. In fact, this system will contain information relating to “material weaknesses” present in individual European financial institutions that have been identified by the competent authorities. These weaknesses may include the lack of adequate AML policies and procedures, including high risk profiles, which increase the AML/CFT risks associated with the financial institution.
The EBA has determined that it will use the information obtained from EuReCa to update the risks relating to money laundering and terrorist financing that may affect the European financial sector and, where it deems it appropriate, share this information with the competent authorities to assist them in the various stages of the supervisory process.
Furthermore, EuReCa will provide a tool that will enable competent authorities to act even before the risk of money laundering or terrorist financing can materialize.
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