In a welcome address to a European University Institute policy workshop, ECB Supervisory Board Chair Claudia Buch outlined how European Central Bank Banking Supervision will strengthen cooperation with the European Anti-Money Laundering Authority (AMLA) so that money laundering and terrorist financing (ML/TF) risks are better reflected in prudential supervision and supervisory fragmentation across the EU is reduced. The speech reiterated that the ECB does not supervise AML/CFT compliance but relies on information from AML/CFT authorities to inform prudential assessments, supported by cooperation arrangements including AML/CFT colleges and the ECB’s horizontal AML coordination function established in 2018. Buch highlighted that coordination matters where material deficiencies are identified, given overlaps in the types of supervisory measures that can be applied, and pointed to growing vulnerabilities linked to digitalisation, including fraud, cyberattacks and the heightened ML/TF risks in the crypto-asset sector, particularly for crypto-asset service providers (CASPs). The remarks also referenced the ECB’s reform agenda underway since 2023 to make supervision more effective and risk-based, including the development of suptech tools that could be shared with other authorities. Buch positioned the June 2025 ECB-AMLA Memorandum of Understanding as the framework for cooperation on policies, supervisory standards and the use of supervisory powers, with implementation focused on lean information exchange, coordinated planning and avoiding overlapping requests to institutions. She also noted that AMLA is set to assume direct supervisory responsibilities for higher-risk credit and financial institutions from 2028, and that ECB Banking Supervision will continue contributing to AMLA-led work on risk assessments and harmonised methodologies, aligning with IMF Financial Sector Assessment Program recommendations.
European Central Bank - Banking Supervision 2026-02-11
European Central Bank Banking Supervision sets out plans to deepen cooperation with the European Anti-Money Laundering Authority on ML TF risk oversight
ECB Supervisory Board Chair Claudia Buch stressed improved cooperation with the European Anti-Money Laundering Authority (AMLA) to integrate money laundering and terrorist financing risks into prudential supervision. The ECB will focus on coordinated planning and information exchange, with AMLA taking direct supervisory roles for higher-risk institutions from 2028. The ECB's reform agenda aims to enhance supervision effectiveness, including developing suptech tools and aligning with IMF recommendations.