Financial Crime World

European Banking Authority Enhances Anti-Money Laundering/CFT Supervision

The European Banking Authority (EBA) has strengthened its role in monitoring the implementation of EU Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) standards. This article highlights key changes and initiatives that aim to improve AML/CFT supervision within the European Union.

Thematic Peer Reviews

The EBA will conduct thematic peer reviews to assess compliance with specific AML/CFT requirements. These reviews will help identify:

  • Good practices in national approaches
  • Potential gaps in national approaches
  • Areas for improvement and cooperation among member states

By sharing best practices, the EBA aims to enhance the effectiveness of AML/CFT supervision across the EU.

Requests for Action

The EBA has introduced a new proactive tool: requests for action. This power allows the EBA to request competent authorities to take action if there are indications of material breaches by financial institutions or groups of institutions. The goal is to address ML/TF risks in a timely and effective manner.

Investigations

The EBA will investigate possible breaches of Union law where there is clear evidence. This power complements the new powers, such as requesting action towards supervised entities.

The EBA takes the lead on AML/CFT on behalf of all competent authorities under a new legal framework. This aims to achieve greater compatibility and consistently effective outcomes within the current EU AML/CFT framework.

These changes aim to enhance the effectiveness of AML/CFT supervision in the EU, but may not be sufficient to address significant gaps in national approaches. The European Commission is examining whether more harmonization and centralization are needed to foster a robust, EU-wide approach to preventing ML/TF risks.