10 October 2019

Main results - Economic and Financial Affairs Council

The Council discussed issues related to anti-money laundering and the Wise Persons' Group's report on the European financial architecture. It adopted a Council recommendation on the appointment of a member of the ECB executive board.

Anti-money laundering action plan

The Council discussed progress in the implementation of the anti-money laundering action plan set out in December 2018, as well as strategic priorities which will guide the Commission's longer-term actions. The Council is set to adopt conclusions on the matter in December 2019.

Ministers took stock of the shortcomings identified by the Commission in its July 2019 package of reports, including a "post-mortem" review of recent alleged money laundering cases involving EU banks. They stressed the importance of implementing recently agreed reforms, in particular the 5th revision of the AML directive, the new capital requirements for banks (CRD5) and the revised European system of financial supervision, and of enhancing cooperation and exchanges of information among competent authorities. Ministers also considered the possibility of further harmonising AML rules, in particular by turning the AML directive into a regulation and conferring specific AML supervisory tasks to an EU body.

AML strategic priorities">Presidency issues note on the way forward for AML strategic priorities

Policy towards "high-risk third countries"

Ministers exchanged views on the main elements of the Commission's revised methodology for preparing a list of "high-risk third countries" in the area of money laundering and terrorist financing. Once the methodology is settled, the Commission will put forward a new draft list of countries in the form of a delegated act.

The 5th directive on anti-money laundering and terrorist financing, adopted in May 2018, sets out an obligation to identify third country jurisdictions which have strategic deficiencies in their anti-money laundering and terrorist financing regimes that pose significant threats to the financial system of the EU.

European financial architecture for development

The Chair of the Wise Persons' Group on the European financial architecture for development presented the final report on how to maximise the added value of the European financial architecture for development, taking into account existing national and international bodies involved.

The report argues in support of consolidating and streamlining development finance and climate activities outside the EU into a single entity, a "European Climate and Sustainable Development Bank", in order to avoid overlaps and to strengthen the EU's presence, role and long-term capacity to deliver on its development priorities. It also outlines several options on how to  achieve this. In addition, the report makes the case for taking more immediate steps to create a strong policy centre in the EU and to use the EU development budget in the forthcoming MFF as a catalyst for reforming the existing system.

During the discussion, ministers stressed the importance of working towards a common view and to take advantage of the new EU institutional cycle and ongoing negotiations on the multiannual financial framework. In the meantime, work should be taken forward on the short term measures as soon as possible. The Finnish presidency will deal with this issue as a matter of priority and aims at adopting Council conclusions on the report by December 2019.

Nomination of a new member of the ECB executive board

The Council issued a recommendation to the European Council on the nomination of Fabio Panetta, current Senior Deputy Governor of the Bank of Italy, as its candidate to replace Benoit Coeuré on the executive board of the European Central Bank.

The European Council is expected to take a formal decision on the appointment by the end of the year, after having consulted the European Parliament and the ECB's Governing Council.

ECB executive board: Eurogroup gives support to Fabio Panetta's candidacy (Eurogroup press release)">ECB executive board: Eurogroup gives support to Fabio Panetta's candidacy 

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