Author: Selwyn Manning

Source: Government of the Netherlands

News item | 23-05-2024 | 16:19

Leiden University and the Royal Netherlands Academy of Arts and Sciences (KNAW), the Royal Netherlands Institute for Southeast Asian and Caribbean Studies (KITLV), in cooperation with the University of Amsterdam (UvA), are selected as residency for the professor chairs. Leiden University will hold the professor chair political sciences/public administration and the University of Amsterdam the professor chair anthropology/sociology.

Professor chair holders

The Executive Boards of the UvA and Leiden University have approved the proposal for appointment of their candidate. Social and cultural anthropologist Dr. Francio Guadeloupe will hold the professor chair Public Anthropology of Kingdom Relations for the KNAW/KITLV/UvA. Dr. Wouter Veenendaal, Associate Professor Comparative Politics at the Institute of Political Science of Leiden University, will hold the professor chair Democratic Representation in the Kingdom for Leiden University. He will be working from the KITLV in Leiden.

Broad knowledge development

The 2 professor chairs by special appointment are an initiative of the Directorate-General Kingdom Relations (DGKR) of the Ministry of BZK in the context of a broad knowledge development. The professorships contribute to the strengthening of both the knowledge function within DGKR. There is a need for more in-depth and broader attention in the scientific niche of Kingdom relations which generates more research, collaboration, synergy and a greater spin-off in this area.

Caribbean universities

The intention is to closely involve the universities in the 3 Caribbean countries of the Kingdom in the professor chairs. The aim is to work together with the Caribbean universities whereby, for example, lecturers and researchers can be exchanged. The assignment will be further worked out in consultation and close collaboration with the Caribbean universities.

Priceless value

State Secretary Alexandra van Huffelen of Kingdom Relations: “I am elated that we were able to accomplish this collaboration with the universities. Dependable scientific knowledge is of priceless value and can contribute to the further improvement of the cooperation in the Kingdom. A great milestone, especially in the year that we celebrate being connected in the Kingdom for already 70 years through the Charter”.

Professor chair holder Francio Guadeloupe: “Almost half of the people with a Caribbean background reside in the Netherlands. Meanwhile, thousands of Dutch citizens whose great-grandparents were born and raised in the Netherlands. This reality is bigger than the tensions between the politicians in The Hague and the politicians on the islands. We need to recognize that Kingdom relations in practice work out on a lower frequency than many policy makers are attuned to. I want to focus on what is being done in the community and in the political realm to make the Kingdom of the Netherlands more equitable, fair and inclusive for all. That is what I plan to study, in cooperation with knowledge institutions on all six islands and in the Netherlands”.

Professor chair holder Wouter Veenendaal: “The Kingdom of the Netherlands has a unique structure. It consists of 4 autonomous and equivalent countries, but 1 of those countries – the European Netherlands – is politically and institutionally superior to the others. This raises questions about democratic representation within the Kingdom, which I want to investigate in the context of this chair. Together with institutions and experts on the six islands and in the Netherlands, I hope to give an impetus to the development of knowledge and education in the field of politics and democracy in our Kingdom. I very much look forward to collaborating with researchers and institutions on both sides of the ocean.”  

Open process

The professor chairs came about through an innovative, open process. Universities were asked to submit a proposal with their own explanation and research focus. The proposals of Leiden University and KITLV/KNAW/UvA were assessed as being the best ones.

DGKR already works together with The Hague University of Applied Sciences (Haagse Hogeschool) in regard to the Minor Kingdom Relations.

Source: Government of the Netherlands

News item | 17-05-2024 | 14:10

There have been concerns for some time about the increase in extremism and the threat it poses. Space for criticism, demonstrations and other activism within the boundaries of the law are essential in our society. The limit of that space lies with undermining or threatening the democratic legal order itself. That’s what this strategy is about. There is already a solid foundation when it comes to tackling extremism in the Netherlands. The new strategy combines what is already being done to tackle this threat and where this can be done even better. The strategy focuses on three pillars: broad for the entire society with regard to promoting a resilient and open society. And specifically aimed at extremism with regard to protecting the democratic legal order and combating excesses of extremism.

Promoting a resilient open society

A resilient and open society is important to reduce the breeding ground and the susceptibility to extremism and to increase resilience against extremist ideas. The government supports municipalities, professionals and social organisations by providing knowledge and instruments that can protect individuals and groups against radicalisation, polarisation, discrimination and racism. For instance, expertise in the field of conflict management, the right to demonstrate or having difficult talks. Collaboration between education, welfare, healthcare and the safety domain, among others, is crucial. This requires awareness, expertise and a shared language to recognise signals and deal with concerns.

Minister Van Gennip: “A society in which everyone can participate, feels connected and has equal opportunities. To me, that is what constitutes a resilient society. This is not self-evident. It requires hard work from the government, social organisations and, of course, from residents and communities themselves. Look after each other and engage in conversation, even if you disagree. Because within an open society, there’s room for differences of opinion, contradiction and criticism. As long as you do so respectfully and continue to consider each other as human beings.”

Protecting the democratic legal order against extremist influences

It is important that we continue to protect the democratic legal order in our country against extremist influences. There is a role for society and the government in this. For instance, conducting an open dialogue with each other is part of this. Where needed, we must protect our political office holders and the public debate. Against punishable expressions, but also against content that, although not punishable, is harmful to society. Such as content that normalises extremist ideas or disinformation. We do this by giving people opportunities to verify information and by contradicting disinformation when necessary. Discussions are being held with social media platforms at national and European level about how to combat the frequent spread of disinformation. 

Minister De Jonge: “The democratic rule of law is the basis of our free and open society. We see that in countries around us, this isn’t always self-evident. That is why we must continuously protect and renew our democratic rule of law. We do this, among other things, by making our politicians resilient to threats and intimidation. And we provide space for an open debate that is resilient to disinformation. That requires an effort from all of us.”

Combating excesses of extremism

To prevent extremist violence or violations of the law, it is necessary to intervene as early as possible, limit the impact and, where necessary, combat these excesses of extremism. Tackling violent extremism is not new. For instance, municipalities conduct multidisciplinary case consultations, take measures where necessary and implement tailor-made interventions. The online environment is increasingly acting as a catalyst for hate speech, extremist messages that can also contribute to the normalisation of extremist ideas. This causes a lot of online insecurity, which is why a lot of effort is being made to tackle extremist expressions. For instance, by holding platforms that do not cooperate accountable through international channels. Extremist speakers who incite hatred and violence are also banned where possible. Their entry into the Netherlands can be refused if there is a danger to public order or national security. Instigators who possibly drive others to violence, incite hatred or spread extremist ideas are also traced and tackled.

Minister Yeşilgöz: “In our open democracy, there must always be room for criticism and demonstrations, but we shouldn’t be naive. This should not be misused to spread extremist messages, preach hatred or incite violence. We must always continue to fight that. This must be done in a way that is accessible and achievable also on a local level. That’s why we must continue to support municipalities to keep acting strongly on this.”  

About the National Extremism Strategy

The National Extremism Strategy was developed under the coordination of the National Coordinator for Security and Counterterrorism (NCTV), in collaboration with several departments and chain partners. It builds on the analysis of extremism by the National Security Analyst Network from October last year.

Source: European Banking Authority

• The EBA plays an important role in the implementation of the EU Banking Package.
• These draft Guidelines are part of the first phase of the EBA roadmap for implementing the EU Banking Package.
• These draft guidelines will contribute to a more a robust regulatory framework, efficient supervision, and enhanced risk control by credit institutions.

The European Banking Authority (EBA) today launched a public consultation on its draft Guidelines (GLs) under the Capital Requirements Regulation (CRR3) regarding acquisition, development and construction (ADC) exposures to residential property. These Guidelines specify the credit risk-mitigating conditions that allow institutions to assign a risk weight of 100% instead of 150% for ADC exposures to residential property. Furthermore, the Guidelines also address the specificities of institutions’ lending to public housing or not-for profit entities. The consultation runs until 19 August 2024.

The Guidelines specify further the two conditions introduced in the CRR3 for ADC exposures to residential property to benefit from a risk weight of 100% instead of 150%:

• 50% of pre-sale and pre-lease contracts with respectively a cash deposit equal to or higher than 10% of the sale price and equal to or higher than 3 times the monthly lease rate, or sale and lease contracts.
• The obligor has substantial equity at risk, represented as an appropriate amount of obligor-contributed equity representing 35% of the residential property value upon completion.

Against this background, the draft Guidelines will define the metrics and thresholds associated with the two conditions mentioned above. The EBA will leverage further on an ad hoc data collection conducted as part of the Basel 3 monitoring QIS to calibrate the threshold.

Additionally, the Guidelines establish a specific framework for ADC projects related to public housing or not-for-profit entities across the European Union, which in any case is optional compared to the general framework at the discretion of credit-granting institutions.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 19 August 2024.

The public hearing on these draft GLs will take place via conference call on 20 June 2024 from 9.30 to 11.00 CEST. The EBA invites interested stakeholders to register using this link by 18 June 2024 at 16:00 CET.

Legal basis and background

The draft Guidelines have been developed according to Article 126a(3) of Regulation (EU) No 575/2013 (CRR), as amended by the CRR3. 

Source: Government of the Netherlands

News item | 15-05-2024 | 08:56

These conclusions can be found in the Central Government Annual Financial Report, submitted to the House of Representatives by Minister of Finance Steven van Weyenberg on Accountability Day.

According to Mr van Weyenberg, ‘In 2023, the plans set out in the government’s ambitious investment agenda continued to come to fruition. The government invested in solutions for key challenges facing society, in areas such as equality of opportunity, education, climate action and defence. Obstacles to the realisation of these solutions were caused by a range of factors, including a shortage of staff. We are also reaching the limits of what is possible in terms of the environment and physical space in our country. Nevertheless, the budget deficit was smaller than expected, the national debt lower than in 2022 and investments and expenditures delivered results.’

Government finances

In 2023, not all budgeted funds were spent. This was due in part to the labour market shortage. The government spent €13 billion less than expected, including a sum of €5.8 billion that has been rolled over to future years, to ensure that those resources are spent on the things for which they were originally intended. The remaining €7.2 billion is what is known as ‘underspend’: funds that have not been spent by the time the year comes to an end. This underspend related mainly to investment budgets and complex issues, such as benefits, the situation in Groningen, and the nitrogen emissions crisis. 

In 2023 the government spent a total of €5.4 billion on support for Ukraine. This was used to provide both military and humanitarian support, as well as reception in the Netherlands for Ukrainian refugees. 

In 2023, the budget deficit was far lower than expected. In the 2023 Budget Memorandum the deficit was estimated at 3% of GDP but was ultimately 0.3%. 

There are various reasons for this. Firstly, actual revenue in 2023 was significantly higher (€19.1 billion) than estimated in the Budget Memorandum. This was a result both of policy changes, such as reversing the decision to reduce energy tax in order to cover the cost of the price cap, and of positive economic developments, such as higher wages and profits, which translated into higher tax revenues. 

A second reason was the underspend in 2023. Lastly, subnational authorities also had a budget surplus, and spending that was attributed to another budget year. At the same time, there was also additional expenditure, such as asylum, interest, and the energy price cap.  

In 2023, the EMU debt stood at €480.7 billion, or 46.5% of GDP. This was lower than the figure estimated in the 2023 Budget Memorandum (49.5% of GDP). It was also lower than it has been in the past few years (51% in 2022 and 52.1% in 2021). In 2023 the Dutch national debt remained below the European Union limit of 60% of GDP.

Financial management

Over the past year, central government’s financial management has been focused largely on making improvements, concluding the support measures from previous years relating to the COVID-19 pandemic and the energy crisis, and administrating Dutch aid to Ukraine. According to the Netherlands Court of Audit, the regularity of obligations, expenditures and receipts in 2023 stood at 98.9%, 99.6% and 99.9% respectively. In relation to previous years, the regularity percentage has continued to improve This progress is attributable to the extra efforts of government ministries.  Furthermore, compliance with the procedures concerned with informing parliament in a timely and correct manner has improved.

In 2023 the number of irregularities fell from 44 to 36. Working jointly within a task force aimed at enhancing financial management, the ministries have worked hard to address shortcomings. Although too many procurement management errors are still being made within complex contract award procedures, central government’s financial management is generally moving in the right direction. It goes without saying that that taxpayers’ money must be managed properly. In the year ahead, the government will maintain its focus on enhancing and strengthening financial management across central government. 

Incidental supplementary budgets (ISBs)

At the request of the House of Representatives, the number of interim budget adjustments (known as incidental supplementary budgets (ISBs), has been significantly reduced. In 2023, a total of eight ISBs were submitted, compared with 51 in 2022. This amounted to spending of €2 billion in 2023, compared with €18.6 billion the previous year. The main reasons for these ISBs were the war in Ukraine, energy compensation measures and the COVID-19 pandemic. 

There are various reasons to create an incidental supplementary budget (which is an adjustment to the original budget), such as unexpected expenditure or specific measures that require additional funding. 

In 2023 the government started a pilot scheme to further reduce the number of ISBs. To this end, it adjusted the budget schedule around the Netherlands’ Budget Day, thus bridging the gap between the first (Spring Memorandum) and second (Autumn Memorandum) supplementary budgets. Before the summer the government expects to present plans aimed at further improving the budget process.

Source: Government of the Netherlands

News item | 14-05-2024 | 14:43

Mission Sustainable

The ministry launched its own sustainability programme (Mission Sustainable) two-and-a-half years ago. Under the slogan ‘Walk our Talk’, Mission Sustainable is moving steadily towards sustainable operational management, sharing best practices with each other and the world. Key themes this year include travel choices and making ministry real estate, such as embassies, more sustainable.

The plans of the Ministry for the years ahead will focus on:

Climate neutrality: Progress on the goal of becoming a climate-neutral organisation by 2030 remains a challenge.  In 2023 the ministry’s carbon footprint grew due to an increase in air travel and in electricity consumption worldwide. The spike in air travel was possibly an after-effect of the travel restrictions during COVID-19. And increased use of air conditioning due to the hotter weather worldwide led to more electricity consumption.

The Ministry will continue working on sustainable initiatives, such as making our real estate more sustainable, facilitating sustainable travel choices, and improving the way we gather travel and emissions data.

Circular economy

In 2023 the Ministry made significant progress on the circular economy, with circular pilot projects in various places, including the embassies in Ankara, Dublin and Addis Ababa. These delivered impressive and inspiring results, and will be continued in 2024. The Ministry will also launch new pilot projects, notably in IT.

Supply chain responsibility: Efforts under this theme focused on good working conditions and protection of human rights, for instance by ensuring that companies that provide us with facilities services pay their employees a living wage. In construction projects for embassies and residences, the Ministry made agreements with contractors on occupational safety and good working conditions.

Sustainable organisational culture: Staff around the world are actively involved in making our organisation more sustainable. Since 2023 sustainability teams at the embassies have been playing an increasingly important role. They are working together on knowledge exchange and sharing effective practices and success stories.

Future activities: The results achieved in 2023 have laid a good foundation for activities in 2024. The Ministry of Foreign Affairs will intensify its efforts and work hard on new sustainable initiatives.

Source: European Banking Authority

•    The EBA plays an important role in the implementation of the EU Banking Package. 
•    These draft regulatory technical standards are part of the first phase of the EBA roadmap for implementing the EU Banking Package in the area of credit risk.
•    These draft technical standards will contribute to a more a robust regulatory framework, efficient supervision, and enhanced risk control by credit institutions. 

The European Banking Authority (EBA) today launched a public consultation on its draft regulatory technical standards (RTS) under the Capital Requirements Regulation (CRR3) regarding the equivalent mechanism for unfinished property. These technical standards specify the conditions that a legal mechanism should meet in order to recognise a property under construction in the own fund requirements calculation under the standardised approach of credit risk. The consultation runs until 7 August 2024. 

The draft RTS clarify that an equivalent legal mechanism requires three conditions to be met:

1)    an entity should be required to or have committed in a legally binding manner to ensuring that the property under construction will be finished within a reasonable timeframe;
2)    this entity should have the legal powers and ability to do so;
3)    a counter guarantee is provided by a central government or assimilated entities. 

The consultation paper also presents an alternative approach, with a more comprehensive understanding of the equivalence legal mechanism and aimed to capture completion guarantees already in place in some EU jurisdictions.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 13 August 2024.

The public hearing on these draft RTS will take place via conference call on Tuesday 11 June 224 from 10.00 to 12.00 CEST. The EBA invites interested stakeholders to register using this link by Friday 7 June 2024 at 16:00 CEST.

Legal basis and background

The draft RTS have been developed according to Article 124(12) of Regulation (EU) No 575/2013 (CRR), as amended by the CRR3. 
 

Source: Government of the Netherlands

News item | 13-05-2024 | 12:00

Chaired by Rob Jetten, Minister for Climate and Energy Policy and Deputy Prime Minister of The Netherlands, Co-Chair of IHTF, the roundtable brought together nearly two dozen Ministerial officials of the IHTF supporting countries, representing prospective hydrogen importing and exporting countries, as well as the delegation of 15 Hydrogen Council executives led by the Hydrogen Council Co-Chair Yoshinori Kanehana, Chairman of the Board, Kawasaki Heavy Industries, Ltd..

The roundtable featured Ministerial-Executive dialogues on global, cross-border trade corridors in hydrogen and its derivatives from the Middle East, Africa and the Americas, to Europe and Asia, considering the status and outlook for the deployment of diverse hydrogen carriers, the enabling infrastructure, and the demand from end use sectors.

Rob Jetten, Minister for Climate and Energy Policy and Deputy Prime Minister said: “We see a critical need for better alignment between decision-makers in the public and private sector to advance the development of cross-border supply chains for hydrogen and its derivatives. That is why the Netherlands took the initiative to co-host the second IHTF-Hydrogen Council Ministerial-Executive Roundtable. Hydrogen supply chains will play a crucial role in accelerating decarbonisation, boosting security of supply and unlocking socio-economic gains globally. Together with our partners, The Netherlands is committed to open the gateway into the European hydrogen market, driving decarbonisation of our industries and sustainable growth.”

Sharif Al Olama, Undersecretary, Ministry of Energy & Infrastructure said: “Today’s Ministerial-Executive dialogue is an important milestone in public-private cooperation paving the way for the development of the global hydrogen market. The analysis carried out by the IHTF and the Hydrogen Council shows how alongside the vital climate benefits, cross-border supply chains in hydrogen can deliver cost-efficiency gains helping save some USD 3.7 trillion in energy system costs by 2050, providing good quality jobs across geographies. UAE remains committed to continued collaboration with our partners in Europe and Asia and to deliver on our goal to become one of the world’s leading producers of low-carbon hydrogen by 2031.”

The roundtable discussion was informed by the analysis of the emerging trade routes plus import and export hubs, carried out by the IHTF and the Hydrogen Council, highlighting the following three key unlocks required to kick-start the scaling of a global, cross-border trade in hydrogen:

1. Greater clarity, certainty and support for demand drivers is critical at this stage of market development. Accelerating the implementation of the announced demand-pull measures remains key to secure the first 3-7 Mtpa of mandated demand to kick-start the market.

2. Infrastructure development for interregional corridors, allowing technologies to compete without ‘picking winners’ to allow the most cost-effective and sustainable solutions to thrive.

3. Aligned and consistent global market rules, industry standards and mutually recognized certification schemes will constitute the backbone for the development of an international hydrogen market.

Hydrogen Council Co-Chair Yoshinori Kanehana, Chairman of the Board, Kawasaki Heavy Industries, Ltd., said: “The Hydrogen Council is pleased to co-host the second Ministerial-Executive Roundtable putting the spotlight on the progress being made in line with our COP28 Action Statement, bottlenecks and enabling measures for accelerating the development of cross-border value chains for hydrogen and its derivatives to stay on track with our net zero targets. Continued international cooperation on standards and certification solutions enabling market interoperability remains critical as we seek to create a truly global market.”

Hydrogen Council Co-Chair Sanjiv Lamba, CEO of Linde, said: “This is a critical time for public-private collaboration in hydrogen. While hydrogen production projects are maturing with many of them being announced and moving into FEED phase or beyond, demand-side uncertainty is causing delays in final investment decisions. The Hydrogen Council remains committed to advancing the deployment of the global supply chains with IHTF. By ensuring close collaboration between governments and industry to implement robust demand-side incentives coupled with strong industry partnerships, we can build investor confidence to get projects over the line.”

“Energy is the key driver for development. We have the technology and the knowledge to make low carbon economic and industrial development possible. That is why UNIDO prioritizes building hydrogen supply chains, which are so important for emerging markets and developing economies as they enter global hydrogen partnerships. The latest IHTF analysis shows how a truly global hydrogen economy has the potential to create up to 25 million jobs by 2050 in the sector. UNIDO as IHTF Secretariat fully supports public-private collaboration in the creation of cross-border trade corridors to drive a just transition to a green hydrogen economy that leaves no one behind” said UNIDO Director General, Gerd Müller.

Source: European Banking Authority

The European Banking Authority (EBA) today published three sets of final draft regulatory technical standards (RTS) and one set of final draft implementing technical standards (ITS) relating to the authorisation as issuer of asset-referenced tokens (ARTs), to the information for the assessment of acquisition of qualifying holdings in issuers of ARTs and to the procedure for the approval of white papers for ARTs issued by credit institutions under the Markets in Crypto-assets Regulation (MiCAR). These technical standards are key to regulate access to the EU market by applicant issuers of ARTs and persons intending to exercise significant influence on these undertakings via the acquisition of qualifying holdings.

The RTS on authorisation lay down the information requirements to be included when applying for authorisation to offer to the public or seek admission to trading of an ART, so to enable the comprehensive assessment of the application by the competent authority. Following the public consultation, the scope of the authorisation has been amended to clarify that: a) the applicant issuer may only be a legal person or undertaking established in the EU, and b) whilst the issuance is not subject to authorisation, which only covers the public offer or the admission to trading, an application may only be submitted by an applicant issuer, therefore only an issuer may be granted authorisation. 

The ITS  on authorisation set out the standard application letter and the application template and clarify the process relating to the assessment of completeness of the application by the competent authority. As credit institutions are only required to receive approval to publish a white paper, the RTS and ITS on authorisation do not apply to credit institutions.  

The RTS on the detailed content of the information to be included in the notification for of the proposed acquisition of direct or indirect qualifying holdings lay down the information requirements that are necessary to the competent authority to carry out the prudential assessment in case of proposed acquisitions in issuers of ARTs that are not credit institutions.

This information covers five criteria relating to (a) the reputation of the proposed acquirer, (b) the suitability of any person who will direct the target undertaking, (c) the financial soundness of the proposed acquirer, (d) the sound and prudent management of the target undertaking following the acquisition and (e) suspicion that money laundering of terrorist financing is committed or attempted or that it may increase following the acquisition.

Following public consultation, and considering the request of personal data in case of the application for authorisation and of notification of proposed acquisition of qualifying holdings, some recitals reminding the obligation to comply with the privacy regime have been added both in the RTS on information for authorisation and in the RTS on information for notification of proposed acquisition of qualifying holdings. Credit institutions, unlike other issuers of ARTs, do not require authorisation to issue ARTs but must notify its competent authority, and the white paper must be submitted to the competent authority for approval. 

The RTS on the procedure for the approval of white papers for ARTs issued by credit institutions sets out the timeframes that credit institutions, competent authorities and the European Central Bank (ECB) or other central banks must follow during the procedure for the approval of a crypto-asset white paper.

Legal basis

The EBA has developed the RTS on information for authorisation in accordance with Article 18(6) of MiCAR and in close cooperation with the European Securities and Markets Authority (ESMA) and the ECB. The draft ITS on standard forms, templates and procedures for the information to be included in the application have been developed in accordance with Article 18(7) of MiCAR and in close cooperation with ESMA. 

The RTS on the detailed content of the information that is necessary to carry out the assessment for the acquisitions of qualifying holdings in ART issuers has been developed in accordance with Article 42(4) of MiCAR and in close cooperation with ESMA. 

The RTS on the procedure for the approval of white papers for ARTs issued by credit institutions has been developed in accordance with Article 17(8) of MiCAR and in close cooperation with ESMA and the ECB.

Background

Regulation (EU) 2023/1114 on Markets in Crypto-assets establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union (EU). It came into force on 29 June 2023, and the provisions relating to ARTs will be applicable from 30 June 2024.

Within the scope of MiCAR are the activities of offering to the public or seeking admission to trading of ARTs and electronic money tokens (EMTs) and issuing such tokens. Supervision tasks are conferred on the EBA for ARTs and EMTs that are determined by the EBA to be significant.

Source: European Banking Authority

The European Banking Authority (EBA) today published the first part of its 2023 Annual Report presenting the main achievements and activities of the organisation in fulfilling its mandates under its Work Programme over the last 12 months. 

The year 2023 was an eventful and productive year, with the Agency delivering on over 95% of the tasks under its remit. These achievements came despite several macroeconomic and geopolitical developments and challenges, such as the impact of the US banking turmoil on the European Union , the ongoing war in Ukraine, and the resulting high inflation and interest rates.

On the regulatory front, the EBA continued its work aimed at strengthening the EU financial sector, in particular by finalising the implementation of the Basel III framework in the EU, implementing the ESG roadmap, and delivering on its digital finance mandates under the Markets in Crypto-Assets Regulation (MiCAR) and the Digital Operational Resilience Act (DORA). 

In 2023, the EBA performed an enhanced EU-wide stress test and further rolled out its data strategy, aiming to improve the way regulatory data is acquired, compiled, used and disseminated to relevant stakeholders.

In 2023, the EBA continued to lead, coordinate and monitor the EU financial sector’s fight against money laundering/terrorist financing (ML/TF) and enhanced its capacity in this area.

The Authority also remained active and made progress in areas such as recovery and resolution, payment services, consumer and depositor protection, equivalence, and supervisory convergence and independence.

Note to the editors 

By mid-June, the EBA will publish a consolidated version of the Annual Report that will provide a comprehensive account of the activities carried out by the Authority in the implementation of its mandate and work programme during 2023. 

Part 1, published today, provides an overview of the annual key achievements, while Parts 2-5, will include comprehensive information on the implementation of the EBA’s work programme, budget, staff policy plan, its management and internal control systems.

Source: European Banking Authority

Starting from May 2024, supervisors across the European Union (EU) will be able to report names of natural persons to EuReCA, the EU central database on anti-money laundering (AML) and countering the financing of terrorism (CFT) of the European Banking Authority (EBA). Through EuReCA, the EBA has been able to contribute to making supervision more informed, targeted and effective. With this step, the EBA will contribute to further strengthening the fight against money laundering (ML) and terrorist financing (TF) in the EU.

EuReCA contains information on serious AML/CFT deficiencies in individual financial institutions that have been identified by EU supervisors. It also contains information on the measures taken by supervisors to address those deficiencies.

If a serious deficiency or a measure is linked to a natural person, for example a customer or a beneficial owner, supervisors will be able to report this information to EuReCA. Supervisors can also report the name of a member of the management body or a key function holder in a financial institution, if necessary, because a lack of honesty or integrity can cause or lead to serious problems in a financial institution’s governance arrangements, business model or activities and ultimately, weaken the institution’s AML/CFT defences.

Since its launch on 31 January 2022, 41 authorities have made more than 1400 reports to EuReCA.

Legal basis and background

EuReCA has been established based on provisions in article 9a (1) and (3) of the EBA Regulation and in Regulation (EU) No 1093/2010 of 9 November 2023. With the publication of the Regulation in the Official Journal on 16 February 2024, EuReCA is enabled to start collecting personal data. The factsheet on EuReCA explains further what is EuReCA, who reports to it and what is in it.

The EBA has updated the Data Protection Impact Assessment (DPIA) it had performed in accordance with Article 39 of Regulation (EU) 2018/1725 (EUDPR). A summary of this updated DPIA is published on the EBA’s website along a notice explaining how the personal data are processed.

The EBA, together with the authorities reporting to EuReCA, as well as ESMA and EIOPA, has also put in place joint controllership arrangements with regard to the processing of personal data in EuReCA in accordance with Article 26 of Regulation (EU) 2016/679 and Article 86 of Regulation (EU) 2018/1725.

Only the data related to significant failures in the compliance with AML/CFT-related requirements can be reported. This ensures that the processing of data remains limited in scope and hence limited to what is necessary and proportionate.