CELEX: 
Language: en
Date: 2019-12-16 00:00:00
Title: COMMISSION IMPLEMENTING DECISION amending Implementing Decision 2014/908/EU as regards the inclusion of Serbia and South Korea in the lists of third countries and territories whose supervisory and regulatory requirements are considered equivalent for the purposes of the treatment of exposures in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council

EUROPEAN
                            COMMISSION
                                                     Brussels, 16.12.2019
                                                     C(2019) 8883 final
                      COMMISSION IMPLEMENTING DECISION
                                         of 16.12.2019
    amending Implementing Decision 2014/908/EU as regards the inclusion of Serbia and
      South Korea in the lists of third countries and territories whose supervisory and
   regulatory requirements are considered equivalent for the purposes of the treatment of
   exposures in accordance with Regulation (EU) No 575/2013 of the European Parliament
                                      and of the Council
                                   (Text with EEA relevance)
EN                                                                                        EN
 ---pagebreak---                            COMMISSION IMPLEMENTING DECISION
                                                 of 16.12.2019
      amending Implementing Decision 2014/908/EU as regards the inclusion of Serbia and
        South Korea in the lists of third countries and territories whose supervisory and
     regulatory requirements are considered equivalent for the purposes of the treatment of
    exposures in accordance with Regulation (EU) No 575/2013 of the European Parliament
                                              and of the Council
                                         (Text with EEA relevance)
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Regulation (EU) No 575/2013 of the European Parliament and of the
   Council of 26 June 2013 on prudential requirements for credit institutions and investment
   firms and amending Regulation (EU) No 648/20121, and in particular Articles 107(4), 114(7),
   115(4), 116(5) and 142(2) thereof,
   Whereas:
   (1)     Commission Implementing Decision 2014/908/EU2 lays down lists of third countries
           and territories whose supervisory and regulatory arrangements are found equivalent to
           the corresponding supervisory and regulatory arrangements applied in the Union in
           accordance with Regulation (EU) No 575/2013.
   (2)     The Commission has conducted further assessments of the supervisory and regulatory
           arrangements applicable to credit institutions in certain third countries and territories.
           Those assessments have enabled the Commission to establish whether or not those
           arrangements are equivalent for the purposes of determining how to treat the relevant
           categories of exposures referred to in Articles 107, 114, 115, 116 and 142 of
           Regulation (EU) No 575/2013.
   (3)     The equivalence has been determined by an outcome-based analysis of the third
           country's regulatory and supervisory arrangements which tests their ability to achieve
           the same general objectives as the Union's supervisory and regulatory arrangements.
           The objectives refer, in particular, to the stability and integrity of both the domestic
           and the global financial system in its entirety; the effectiveness and adequacy of
           protection of depositors and other consumers of financial services; the cooperation
           between different actors of the financial system, including regulators and supervisors;
           the independence and the effectiveness of supervision; and the effective
           implementation and enforcement of relevant internationally agreed standards. In order
           to achieve the same general objectives of the Union's supervisory and regulatory
   1
         OJ L 176, 27.6.2013, p. 1.
   2
         Commission Implementing Decision 2014/908/EU of 12 December 2014 on the equivalence of the
         supervisory and regulatory requirements of certain third countries and territories for the purposes of the
         treatment of exposures according to Regulation (EU) No 575/2013 of the European Parliament and of the
         Council (OJ L 359, 16.12.2014, p. 155).
EN                                                       1                                                          EN
 ---pagebreak---        arrangements, the supervisory and regulatory arrangements of the third country should
       comply with a series of operational, organisational and supervisory standards
       reflecting the essential elements of the Union's supervisory and regulatory
       requirements applicable to relevant categories of financial institutions.
   (4) In its assessments, the Commission has considered the evolution of the supervisory
       and regulatory arrangements of Serbia and South Korea since the adoption of
       Commission Implementing Decision (EU) 2019/5363 and taken into account available
       sources of information, including the assessment made by the European Banking
       Authority which recommended that the supervisory and regulatory frameworks
       applicable to credit institutions in those third countries should be considered as
       equivalent to the Union legal framework for the purposes of Articles 107(3), 114(7),
       115(4), 116(5) and Article 142 (2) of Regulation (EU) No 575/2013. The Commission
       further notes that Serbia has significantly improved its framework against-money
       laundering and the financing of terrorism, and that work continues in this respect.
   (5) The Commission has concluded that Serbia and South Korea have in place supervisory
       and regulatory arrangements which comply with a series of operational, organisational
       and supervisory standards that are at least equivalent to the essential elements of the
       Union's supervisory and regulatory arrangements applicable to credit institutions.
       Therefore, it is appropriate to consider that the supervisory and regulatory
       requirements applied to credit institutions in Serbia and South Korea are at least
       equivalent to those applied in the Union for the purposes of Articles 107(3), 114(7),
       115(4), 116(5) and Article 142 (2) of Regulation (EU) No 575/2013.
   (6) Implementing Decision 2014/908/EU should therefore be amended to include Serbia
       and South Korea in the relevant lists of third countries and territories whose
       supervisory and regulatory requirements are, for the purposes of treating the exposures
       addressed in Articles 107, 114, 115, 116 and 142 of Regulation (EU) No 575/2013,
       considered equivalent to the Union’s regime.
   (7) The lists of third countries and territories considered to be equivalent for the purposes
       of the relevant provisions of Regulation (EU) No 575/2013 are not exhaustive. The
       Commission, with the assistance of the European Banking Authority, will continue to
       monitor on a regular basis the evolution of the supervisory and regulatory
       arrangements of third countries and territories with a view to updating, as appropriate
       and at least every 5 years, the lists of third countries and territories set out in
       Implementing Decision 2014/908/EU taking account, in particular, of developments in
       supervisory and regulatory arrangements, in the Union and at global level, and in light
       of new available sources of relevant information.
   (8) The regular review of the prudential and supervisory requirements applicable in the
       third countries and territories listed in Annexes I to V to Implementing Decision
       2014/908/EU should be without prejudice to the possibility for the Commission to
       undertake a specific review relating to an individual third country or territory at any
       time outside the general review, where relevant developments make it necessary for
       the Commission to re-assess the recognition granted by Implementing Decision
   3
       Commission Implementing Decision (EU) 2019/536 of 29 March 2019 amending Implementing
       Decision 2014/908/EU as regards the lists of third countries and territories whose supervisory and
       regulatory requirements are considered equivalent for the purposes of the treatment of exposures in
       accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ L
       92, 1.4.2019, p. 3).
EN                                                 2                                                       EN
 ---pagebreak---            2014/908/EU. Such re-assessment could lead to the withdrawal of the recognition of
           equivalence.
   (9)     The measures provided for in this Decision are in accordance with the opinion of the
           European Banking Committee,
   HAS ADOPTED THIS DECISION:
                                               Article 1
   Implementing Decision 2014/908/EU is amended as follows:
   (1)   Annex I is replaced by the text set out in Annex I to this Decision;
   (2)   Annex IV is replaced by the text set out in Annex II to this Decision;
   (3)   Annex V is replaced by the text set out in Annex III to this Decision.
                                               Article 2
   This Decision shall enter into force on the twentieth day following that of its publication in
   the Official Journal of the European Union.
   Done at Brussels, 16.12.2019
                                                 For the Commission
                                                 The President
                                                 Ursula von der Leyen
EN                                                 3                                              EN
 ---documentbreak---                                     EN
                                  ANNEX I
                                  "ANNEX I
    LIST OF THIRD COUNTRIES AND TERRITORIES FOR THE PURPOSES OF
                      ARTICLE 1 (CREDIT INSTITUTIONS)
(1)     Argentina
(2)     Australia
(3)     Brazil
(4)     Canada
(5)     China
(6)     Faroe Islands
(7)     Greenland
(8)     Guernsey
(9)     Hong Kong
(10)    India
(11)    Isle of Man
(12)    Japan
(13)    Jersey
(14)    Mexico
(15)    Monaco
(16)    New Zealand
(17)    Saudi Arabia
(18)    Serbia
(19)    Singapore
(20)    South Africa
(21)    South Korea
(22)    Switzerland
(23)    Turkey
(24)    USA"
 ---documentbreak--- NA ---documentbreak---                                    EN
                                ANNEX II
                                "ANNEX IV
    LIST OF THIRD COUNTRIES AND TERRITORIES FOR THE PURPOSES OF
                     ARTICLE 4 (CREDIT INSTITUTIONS)
(1)    Argentina
(2)    Australia
(3)    Brazil
(4)    Canada
(5)    China
(6)    Faroe Islands
(7)    Greenland
(8)    Guernsey
(9)    Hong Kong
(10)   India
(11)   Isle of Man
(12)   Japan
(13)   Jersey
(14)   Mexico
(15)   Monaco
(16)   New Zealand
(17)   Saudi Arabia
(18)   Serbia
(19)   Singapore
(20)   South Africa
(21)   South Korea
(22)   Switzerland
(23)   Turkey
(24)   USA"
 ---documentbreak--- NA ---documentbreak--- NA ---documentbreak---                                    EN
                               ANNEX III
                                "ANNEX V
    LIST OF THIRD COUNTRIES AND TERRITORIES FOR THE PURPOSES OF
         ARTICLE 5 (CREDIT INSTITUTIONS AND INVESTMENT FIRMS)
Credit institutions:
1)       Argentina
2)       Australia
3)       Brazil
4)       Canada
5)       China
6)       Faroe Islands
7)       Greenland
8)       Guernsey
9)       Hong Kong
10)      India
11)      Isle of Man
12)      Japan
13)      Jersey
14)      Mexico
15)      Monaco
16)      New Zealand
17)      Saudi Arabia
18)      Serbia
19)      Singapore
20)      South Africa
21)      South Korea
22)      Switzerland
23)      Turkey
24)      USA
 ---pagebreak--- Investment firms:
1)      Australia
2)      Brazil
3)      Canada
4)      China
5)      Hong Kong
6)      Indonesia
7)      Japan (limited to Type I Financial Instruments Business Operators)
8)      Mexico
9)      South Korea
10)     Saudi Arabia
11)     Singapore
12)     South Africa
13)     USA"