The European Banking Authority (EBA) has published updated guidelines on the equivalence of confidentiality and professional secrecy regimes. A notable part of the update is the addition of the New York State Department of Financial Services to the list of non-EU (third country) banking supervisors whose confidentiality regimes can be regarded as equivalent. As a consequence, EU banks with a presence in New York may find their supervisory college expanded in the near future.
The equivalence assessment process carried out by the EBA is a key component for establishing cooperation agreements with third countries. These agreements cover areas such as exchanging information with third country banking supervisors on equivalence assessment and monitoring, and cooperating with EU authorities in supervision, crisis management and resolution matters. Equivalence of the confidentiality regime of any third-country supervisor participating in a college of supervisors is key to ensuring the safe and secure flow of information within that college. The EBA guidelines are aimed at informing the opinion of national competent authorities in assessing third country equivalence. These authorities must make every effort to comply with the guidelines, which apply as of 16 April 2020. The deadline for national authorities to report on whether they comply is two months after the translated guidelines are published on the EBA website. The New York State Department of Financial Services joins a list of other banking supervisors that the EBA considers equivalent. In the US, these already included the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency, and the Federal Reserve Banks.