European Central Bank outlines closer cooperation with the European Anti-Money Laundering Authority to integrate ML/TF risks into prudential supervision

In a speech, the European Central Bank’s Chair of the Supervisory Board set out how ECB Banking Supervision intends to deepen cooperation with the European Anti-Money Laundering Authority (AMLA) and other AML/CFT supervisors so that money laundering and terrorist financing (ML/TF) risks are reflected more consistently in prudential assessments, while reducing duplication and fragmentation across the EU. The address reiterated that the ECB does not supervise AML/CFT compliance directly but uses information from AML/CFT authorities to assess prudential implications, supported by a horizontal AML coordination function established in 2018 and participation as an observer in AML/CFT colleges. It highlighted a June 2025 Memorandum of Understanding between the ECB and AMLA covering cooperation on policies, supervisory standards and the use of supervisory powers, and noted that AMLA is expected to assume direct supervision of higher-risk credit and financial institutions from 2028. The speech also pointed to digitalisation-driven vulnerabilities, including fraud, cyberattacks and elevated ML/TF risks in the crypto-asset sector, with AMLA expected to focus on higher-risk sectors such as crypto-asset service providers and to counter divergent national approaches that can create supervisory arbitrage. Next steps were framed around implementation, including smoothing day-to-day information exchange, coordinating supervisory planning where authorities cover the same institutions, and contributing to AMLA-led work on risk assessments and harmonised methodologies so Joint Supervisory Teams can better address prudential weaknesses linked to AML/CFT shortcomings.