The European Banking Authority (EBA) has responded to the European Commission’s Call for Advice on key elements of the new anti-money laundering and countering the financing of terrorism (AML/CFT) framework, setting out recommendations intended to support a risk-based and proportionate regime and enable the Anti-Money Laundering Authority (AMLA) to start operations swiftly and effectively. The advice covers draft regulatory technical standards (RTS) on the methodology national supervisors will use to assess obliged entities’ inherent and residual risk profiles, the risk assessment AMLA will use to decide which institutions it will directly supervise, the customer due diligence information that obliged entities must obtain under the new regime, and how supervisors will classify breaches by severity and apply criteria for pecuniary sanctions, administrative measures and periodic penalty payments. It also includes preparatory work on mandates relating to intra-group information exchange and base amounts for pecuniary fines. Once adopted by AMLA and endorsed by the European Commission, the instruments are intended to form a core part of the new EU AML/CFT system. The EBA’s legal AML/CFT mandate is set to transfer to AMLA on 31 December 2025, while the EBA will continue tackling financial crime from a prudential perspective and cooperate with AMLA.