Following this announcement, the European Banking Authority establishes the new anti-money laundering and countering the financing of terrorism authority (AMLA), aiming to facilitate a smooth transition and make the EU a more secure place for customers and businesses alike.
The institution will continue to focus on meeting the needs, preferences, and demands of clients and enterprises in an ever-evolving market, while also prioritising the process of fighting and mitigating financial crime.
The new legislative framework was developed in order to mark an important step forward in the EU’s process of fighting financial crime, through the launch of a single AML/CFT rulebook and the overall establishment of AMLA, the dedicated EU anti-money laundering authority.
According to the official press release, the European Banking Authority will retain its AML/CFT powers and mandates until December 2025, aiming to minimise disruption and provide continuity, while also continuing to work closely with AMLA going forward. In particular, after the process of transferring powers that are specific to AML/CFT to AMLA is finished, the EBA is expected to remain responsible for addressing ML/TF risk across its prudential remit.
Since its inception, the European Banking Authority has been working in order to ensure that financial institutions and their supervisors apply effective AML/CFT controls wherever they operate in the region of the EU, as well as providing a solid and secure foundation for the new regime. At the same time, the European Commission asked the EBA to offer its technical advice on important aspects of the future EU AML/CFT framework, aiming to ensure that AMLA can begin to operate efficiently and effectively as of its establishment date.
Over the course of 2024 and 2025, the European Banking Authority’s priorities in the area of AML/CFT will focus on a methodology for selecting FIs for direct EU-level AML/CFT supervision, information necessary to carry out customer due diligence, a common risk assessment methodology, as well as criteria to determine the seriousness of a breach of AML/CFT provisions. In addition, through the transition phase, the EBA will also support national competent authorities to get ready for AMLA and will coordinate with the European Commission’s AMLA taskforce, which is set to be responsible for the establishment and initial operations of the new framework.
The EBA is expected to provide advice to the Commission in October 2025.
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