Aggregated News From Investment Management Regulators

EBA: The Danish FSA did not breach Union law

Report/Flag

Please complete the required fields.



The EBA’s Board of Supervisors decides cases regarding breach of Union law. The EBA’s Board of Supervisors has decided that the Danish FSA did not breach Union law, on the basis of i.a. the Danish FSA’s consultation response and the discussion at the meeting of Board of Supervisors. The draft presented by the EBA Secretariat was rejected.

On the basis of i.a. articles in today’s edition of the daily newspaper Information, the Danish FSA states the following:

On April 17, The European Banking Authority (EBA) published its long-awaited conclusion to the investigation conducted by the EBA of the Danish FSA and the Estonian FSA (Finantsinspektioon) in relation to the money laundering case concerning the Estonian branch of Danske Bank. The conclusion in the EBA’s announcement was that the EBA’s Board of Supervisors had rejected a draft by the EBA Secretariat, claiming a breach of Union law. Thus, the draft by the EBA Secretariat has not documented a breach of Union law.

According to EU rules, the EBA’s Board of Supervisors, consisting of representatives of national supervisory authorities, decides whether a breach of Union law has occurred.

Furthermore, in a letter to the European Commission dated 26 April, the EBA described the EBA’s Board of Supervisors’ deliberation on the case. The letter concludes that the EBA’s Board of Supervisors rejected conclusively the draft recommendation.

Thus, it is not new that a draft from the EBA Secretariat existed, and that there were consultation responses from Denmark and Estonia. The EBA’s Board of Supervisors rejected the case on the basis of the documentation included in the consultation responses, and which had not been sufficiently taken into account in the draft by the EBA Secretariat. The fact that the rejected draft has now been leaked to the news media does not change the EBA’s final conclusion that there has been no breach of Union law.

In the letter to the European Commission, the EBA points out that, in hindsight, supervision could have been handled differently. As mentioned on previous occasions, the Danish FSA agrees, and the Danish FSA is determined to learn from the case, based on the framework of the recent political agreement in Denmark.

Regarding the vote on the EBA’s Board of Supervisors, it can be stated that the vote in relation to the case was in line with the EBA’s rules, including rules on conflict of interest. The EBA has not officially revealed details of the vote, but as it has surfaced in some media, the rejection of the case was very clear, and neither Denmark’s or Estonia’s vote was decisive in the EBA’s Board of Supervisors’ rejection of the case.

Background

On 24 September 2018, the Danish FSA announced that the EBA was initiating an investigation of the Danish FSA in relation to European rules on i.a. AML supervision. The investigation was initiated following a request from the European Commission. On February 18 2019, the Danish FSA stated that the EBA was continuing the investigation. On April 17 2019, the EBA announced that the EBA’s Board of Supervisors had rejected a breach of Union law by Denmark.

Source link

Regulator Information

Abbreviation: DFSA
Jurisdiction: Denmark

Recent Articles

AMF and ACPR announce the withdrawal of BYKEPS SAS’s registration as a DASP

The company BYKEP SAS was registered as a DASP by the AMF, after receiving a positive opinion from the ACPR, on 18 February 2021, for the activities of custody of digital assets and buying or selling

CVM condemns controlling shareholder of São Paulo Turismo SA for abuse of power of control

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

RC.No.4540 – Recovery Proceedings under RC.No.4540 Fact Enterprise Ltd. (PAN: AAACF0955A) in the matter of Ravi Kumar Distilleries Ltd. – General Remittance Orders...

This news item was originally published by the Securities and Exchange Board of India (SEBI IN). See the article here: Read more

EBA publishes Guidelines on transferability to support the resolvability assessment for transfer strategies

The European Banking Authority (EBA) today published its final Guidelines on transferability to support the resolvability assessment for transfer strategies.

Get the latest from Regulatory.News in your inbox!

×