In December, we published our annual risk assessment (RAR) of the European banking system.

The report focuses on risks across the whole banking sector, including risks related to the current COVID-19 pandemic. From an AML/CFT perspective, we found that some banks may be underestimating the level of ML/TF risk to which they are exposed. We also found that the pandemic increased reliance on remote onboarding solutions and gave rise to new financial crime risks, which some banks may not have been equipped to manage. Finally, a reduction in some banks’ revenues as a result of the pandemic may have led them to take on greater ML/TF risks.