For Financial Institutions
EFCA provides the technical standards and enforcement frameworks that protect the integrity of the European financial market. All licensed institutions must adhere to the Single Passport compliance mandate.
OBLIGATIONS
EFCA Compliance for Financial Institutions
Maintain Proof of Reserve
Applies to all investment platforms. Reserves must be held in EFCA-monitored smart contracts for real-time solvency verification.
Algorithm Stress Testing
Submit trading/betting algorithms for mandatory annual stress tests to prevent predatory slippage and engineered liquidations.
Subpoena Response
Respond to EFCA subpoenas within defined timeframes: 4h for critical asset-freeze requests, 24h for standard intelligence queries.
Sentinel AI Data Feeds
Provide mandatory, high-velocity compliance data feeds to the Sentinel AI monitoring system for anomalous pattern detection.
24h STR Reporting
Report Suspicious Transaction Reports (STRs) to EFCA within 24h of detection. Failure to report is considered complicity.
ENFORCEMENT
Consequences of Non-Compliance
Automatic Revenue Fines
Calculated as a percentage of global revenue for Clean-Coin Ledger violations or failure to freeze assets within the 60-min mandate.
Licence Suspension
Immediate recommendation to EBA and ESMA for licence withdrawal. Suspension is the default until compliance is re-verified.
Public Disclosure
Publication of audit failures on EFCA's public register, affecting institutional credit ratings and counterparty trust.
Criminal Referral
Referral to EPPO for criminal prosecution in cases of wilful, repeated, or egregious non-compliance with EFCA mandates.
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