By PAUL O’DONOGHUE, Senior Correspondent
The European Banking Authority (EBA) will continue in its role as the key authority policing money laundering before transferring its powers and resources to AMLA by the end of 2025.
The organisation also said a new EU framework will allow for the EU’s new Anti-Money Laundering Authority (AMLA) to take over primary oversight of the sector from the EBA.
“The EBA is proud to be paving the way for the establishment of AMLA and is committed to facilitating a smooth transition, and making the EU a hostile place for financial crime,” the organisation said today (Wednesday).
Since 2020, the EBA said it has been “leading, coordinating and monitoring” the EU financial sector’s fight against money laundering (ML) and terrorist financing (TF). The EBA said the new legislative framework “marks a significant step forward in the EU’s fight against financial crime”.
The rules will create a harmonised and single AML/CFT rulebook and allow for the establishment of AMLA, the EU’s new dedicated anti-money laundering authority.
“The EBA will retain its AML/CFT powers and mandates until December 2025 to minimise disruption and provide continuity, and it will also continue working closely with AMLA going forward,” the EBA said.
“In particular, after transferring the powers that are specific to AML/CFT to AMLA, the EBA will remain responsible for addressing ML/TF risk across its prudential remit.”
The EBA has identified several key priorities in the area of AML/CFT it will focus on until the end of 2025. These will be:
- Developing a methodology for selecting financial institutions for direct EU-level AML/CFT supervision.
- Developing a common risk assessment methodology.
- Compiling information necessary to carry out customer due diligence.
- Establishing criteria to determine the seriousness of a breach of AML/CFT provisions.
The EBA will then be due to provide a report to the European Commission on these issues in October 2025.
“Throughout the transition phase, the EBA will also support national competent authorities getting ready for AMLA and will coordinate with the European Commission’s AMLA taskforce, which will be responsible for the establishment and initial operations of AMLA,” the EBA said.
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