As part of the development of a consolidated methodology for off-site supervision over the financial sector, a meeting was organised on 31 October 2022 with the aim to guide the supervisory authorities on the main elements and stages of elaborating the methodology. During the meeting the Council of Europe advised supervisors on setting up a system for assessing the risks related to money laundering, through collection of relevant information about financial institutions’ inherent ML/TF risks and the adequacy of their AML/CFT policies, procedures, and controls, taking into account the information on the business-wide risk assessment of financial institutions, the internal audit and compliance reports.

The analysis of the relevant sector specific data with the support of the Action against Economic Crime will contribute to elaborating a consolidated methodology for the off-site aspects of oversight of the financial sector.

The methodology, once finalised, will substantially enhance the effectiveness of risk-based supervision and the ability of the authorities to effectively deploy their resources and mitigate the most pertinent money laundering and terrorism financing risks.

This activity is organised and funded by the European Union and the Council of Europe “Horizontal Facility for the Western Balkans and Turkey” phase II.