European Banking Authority finds stronger risk-based AML/CFT supervision of EU and EEA banks and completes handover of review findings to AMLA

The European Banking Authority (EBA) published a final report taking stock of how all 40 competent authorities across the EU and EEA have addressed the EBA’s findings and recommendations from six years of in-depth reviews of supervisors’ approaches to money laundering and terrorist financing risks in banks. The report concludes that AML/CFT supervision has generally improved, with most authorities making substantial progress in adopting a risk-based approach, although some remediation work remains ongoing. Most competent authorities now have dedicated AML/CFT strategies, targeted supervisory plans and updated supervisory manuals intended to drive more consistent and effective supervision, and supervisors have moved towards using available supervisory tools more strategically. The report also notes stronger coordination and information exchange with domestic public authorities such as other supervisors with shared responsibilities, financial intelligence units and tax authorities, and improved communication with supervisors in other EU jurisdictions and third countries; in some Member States, further improvement is still needed, including on cooperation mechanisms with prudential supervisors. The report concludes the EBA’s multiannual review project and is intended to provide the new EU Anti-Money Laundering Authority (AMLA) with an up-to-date view of AML/CFT supervisory practices and a basis for AMLA’s future indirect AML/CFT supervision. The final report and four summary reports will form part of the EBA’s handover to AMLA, with the report focusing on supervision and cooperation given expected greater standardisation of risk assessment and enforcement under the new EU AML/CFT framework.