Financial Crime World

EU Aims to Align Agendas and Avoid Duplication in Joint Committee Meetings

The European Commission has announced plans to streamline its efforts by inviting the European Central Bank (ECB) to join its delegation to the Sub-committee on financial services established under the Association Agreement. This joint committee is responsible for discussing the implementation of anti-money laundering/counter-terrorism financing (AML/CFT), banking, and financial law regulations in the Principality of Andorra and the Republic of San Marino.

Coordinated Approach

The Commission’s decision aims to ensure a coordinated approach between the two institutions and avoid duplication of efforts in their respective committees. The ECB is responsible for monetary policy and financial stability in the EU, while the Commission is responsible for implementing EU policies and regulations in member states.

Aligning Agendas

As part of its effort to align agendas, the Commission has also proposed changes to the Monetary Agreements with Andorra and San Marino. These agreements, which came into force in 2011 and 2012 respectively, govern the relationship between these two microstates and the EU in matters related to monetary policy and financial services.

Proposed Changes

The proposed changes aim to:

  • Clarify the roles and responsibilities of the Commission and the ECB in implementing AML/CFT regulations and banking laws in Andorra and San Marino.
  • Ensure that all new Union laws on banking and financial law relevant for the euro are clearly marked, allowing for easier assessment of their implementation under both the Association Agreement and the Monetary Agreements.

Automatic Incorporation

Additionally, the changes will guarantee that any new EU laws on AML/CFT that become part of the Association Agreement are automatically incorporated into the Annexes to the Monetary Agreements if the Association Agreement is partially or fully suspended or terminated.

Next Steps

The Commission has informed Andorra and San Marino of its intention to amend the Monetary Agreements and is empowered to negotiate, conclude, and sign the amendments on behalf of the EU.