New guidelines on the authorisation of credit institutions (20/12/2021)

In November we published the final guidelines on a common assessment methodology for granting authorisation of credit institutions. The guidelines introduce guidance on ML/TF risk as part of the risks competent authorities should consider in the assessment of applications for authorisation, and highlight the importance of cooperation with the AML supervisors and other public bodies.

EuReCA! Draft Regulatory Technical Standards on the AML/CFT database (20/12/2021)

In December, we published our draft Regulatory Technical Standards (RTS) on a central database on AML/CFT in the EU, also known as the European reporting system for material CFT/AML weaknesses (EuReCA). This database will act as an early warning tool, helping competent authorities to take action before ML/TF risk materialise, and to coordinate their efforts to prevent and counter ML/TF in the Union.

Revised guidelines on risk-based AML/CFT supervision (20/12/2021)

In December, we published our revised guidelines on the risk-based supervision of credit and financial institutions’ compliance with AML/CFT obligations. Building on the EBA’s existing 4-step approach to risk-based AML/CFT supervision, the revised guidelines set out the steps supervisors should take to ensure adequate AML/CFT oversight of their sector and support the adoption, by credit and financial institutions, of effective ML/TF risk management policies and procedures.  They also provide additional guidance on ML/TF risk assessments, including sectoral ML/TF risk assessment. Finally, they help supervisors choose the most effective tools to meet their supervisory objectives, including in situations when they have identified breaches and weaknesses in institutions’ systems and controls framework and emphasise the importance of cooperation between AML/CFT supervisors and other stakeholders, including prudential supervisors, FIUs and tax authorities.

EBA publishes AML/CFT cooperation guidelines (20/12/2021)

In December, we published our new guidelines on cooperation and information exchange between prudential and AML/CFT supervisors and FIUs. The guidelines set out how and in what situations information exchange is warranted, starting at the authorisation phase through the ongoing supervision and, where relevant the imposition of supervisory measures and sanctions including the withdrawal of authorisation.

The guidelines will apply from 1 June 2022.

EBA annual risk assessment (20/12/2021)

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.

AML/CFT colleges factsheets (20/12/2021)

In December, we published two factsheets on AML/CFT colleges.

One factsheet explains the overall AML/CFT colleges framework, which is set out in the ESA’s guidelines. The other factsheet explains how we monitor AML/CFT colleges, and how we select AML/CFT colleges that we will then monitor closely, i.e. those institutions that pose the highest ML/TF risks. When identifying the colleges to closely monitor, we also take into account the need to ensure a broad geographical spread, coverage by sector and the strategic importance of specific institutions in some regions and Member States.

In addition to active monitoring, from January 2022, we will also carry out thematic monitoring of colleges in certain sectors, and general monitoring of all colleges.

Update on EBA consultation on new guidelines on the role of AML/CFT compliance officers (20/12/2021)

The public consultation on the new draft guidelines on the role, tasks and responsibilities of AML/CFT compliance officers was launched in early August and ended on 2 November 2021. We received 36 submissions mainly from banking, insurance or other finance associations across Member States, which are currently under our review.

The publication of the final guidelines is scheduled for summer 2022.

EBA updates SREP guidelines with explicit AML/CFT references (20/12/2021)

We are currently finalising our revised guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP).

The revised guidelines will reflect changes to the EU’s legal framework. They will also set out how prudential supervisors should take ML/TF risks into account in SREP, in line with the EBA's Opinion on ML/TF risks in SREP.

The final revised SREP guidelines are aimed to be published by end of March 2022.

EBA consults on draft guidelines on the use of remote customer onboarding solutions (20/12/2021)

We launched a consultation on draft guidelines on the use of remote customer onboarding solutions. These guidelines set out a common understanding of the steps financial sector operators should take to ensure safe and effective remote customer onboarding practices in line with applicable AML/CFT legislation and the EU’s data protection framework while observing the principle of technological neutrality.

De-risking Opinion and Report (20/12/2021)

We will publish an Opinion on the scale and impact of de-risking in the EU in early 2022.

In 2020-21 we conducted a series of information gathering exercises, reaching out to all relevant competent authorities across the EU, as well as to external stakeholders to assess the scale and impact of de-risking across the EU and to better understand why institutions decide to de-risk particular categories of customers instead of managing the risks associated therewith. We consolidated the findings and identified a number of steps for competent authorities and the European Commission and co-legislators to tackle unwarranted de-risking going forward.

Report on non-bank lending (20/12/2021)

In February 2021, as part of a broader call for advice on digital finance, the European Commission requested the EBA to provide technical advice on non-bank lending.

We will provide our view on the need to adjust the EU regulatory perimeter, including in relation to AML/CFT. The final report will be published in Q1 2022.

Findings from the EBA’s review of competent authorities’ approaches to AML/CFT supervision (20/12/2021)

We will soon be publishing our findings of this year’s implementation reviews. Implementation reviews are staff-led assessments of competent authorities’ approaches to AML/CFT supervision. Our first report is available on our website.

AML/CFT Colleges report (20/12/2021)

In Q1, 2022, we plan to publish our second report on the functioning of AML/CFT Colleges, where we will summarise our observations of good and poor practices from AML/CFT colleges, which we have attended in 2021. In the report, we will also identify themes and priority areas for 2022 that should be considered and discussed in all colleges.

AML/CFT database will soon be operational (20/12/2021)

The European Reporting system for material AML/CFT weaknesses (EuReCA) will be central to coordinating efforts to prevent and counter money laundering and terrorist financing (ML/TF) in the Union.

EuReCA will start collecting data in Q1 2022.

Call for advice on digital finance (20/12/2021)

In February 2021, the European Commission requested the ESAs to provide technical advice on digital finance and related issues. The Commission specifically asked the ESAs to review the regulation and supervision of (a) more fragmented or non-integrated value chains, (b) platforms and bundling of services, and (c) risks of groups combining different activities, including in relation to AML/CFT.

The final report will be published Q1, 2022.

EBA publishes revised ML/TF risk factors Guidelines (07/04/2021)

In March, following an extensive public consultation, we published our final Risk Factors Guidelines. These Guidelines were first issued in 2017 and have since become central to financial institutions’ risk-based approaches to AML/CFT. We updated them to reflect changes in the EU legal framework, to address new ML/TF risks that have emerged since the previous version, and to clarify regulatory expectations where our findings from, for example, the Opinion on ML/TF risks and our implementation reviews suggested that this was necessary to achieve more robust and consistent outcomes across the EU.

EBA publishes its 2021 Opinion on ML/TF risks (07/04/2021)

In March, we also published our biennial Opinion on ML/TF risks. This Opinion draws on information from the EU’s 57 national AML/CFT supervisors of the financial sector and other work of the EBA. The Opinion provides an insight into the state of the fight against ML/TF in different financial services sub-sectors, as well as an overview of cross-cutting risks such as the Covid-19 pandemic, financial innovation and ‘de-risking’. We will use our findings to inform our policy-making this year and next.

We also published an interactive tool that illustrates all the risks we identified.

Crypto-assets: ESAs remind consumers about risks (07/04/2021)

In March, the European Supervisory Authorities (ESAs) issued a joint warning reminding consumers that the majority of crypto-assets remain unregulated. Even though some virtual asset service providers now fall within the scope of national AML/CFT regimes and the legislative proposal for an EU Regulation in Markets for Crypto Assets (MiCA) has now been published, the negotiations between EU legislators are ongoing and the Regulation does not yet apply. This is why consumers buying or holding crypto assets do not yet benefit from the guarantees and safeguards associated with regulated financial services.

EBA provides introductory AML/CFT training to more than 550 EU supervisors (07/04/2021)

In February, we organised a virtual one-day introductory AML/CFT training course for staff of national supervisory authorities. More than 550 participants from AML/CFT competent authorities, prudential supervisors, Financial Intelligence Units (FIUs) and EU agencies joined to learn about global and European AML/CFT standards, the role of supervisors, FIUs and law enforcement, and the importance of a joined-up approach to fighting financial crime.

We would like to thank our expert speakers from the Financial Action Task Force (FATF), the European Commission, the European Central Bank, the Egmont Group, Europol, the Autorité de Contrôle Prudentiel et de Résolution, the Financial Intelligence and Analysis Unit, the Autoriteit Financiële Markten and the EBA for sharing their insights.

EBA conducts a peer review of competent authorities’ approaches to assessing applications for qualifying holdings (07/04/2021)

We are currently carrying out a Peer Review under Article 30 of our Founding Regulation of the ESAs’ Joint Guidelines on the prudential assessment of the acquisitions and increases of qualifying holdings in the financial sector. We are assessing how competent authorities comply with specific aspects of the joint guidelines, and the extent to which their current practices are effective. Our review includes the fifth assessment criterion, which relates to ML/TF risks that may arise from the proposed acquisition of the qualifying holdings. We are paying particular attention to the way competent authorities assess the origin and legitimacy of the funds the applicant proposes to use to acquire the holdings. 

We will conclude our review in July 2021 and publish our findings later this year.

EBA consults on changes to its risk-based AML/CFT supervision Guidelines (07/04/2021)

In March, we launched a public consultation on changes to our Risk-based Supervision Guidelines. The Guidelines set out what supervisors should do to ensure institutions’ compliance with their AML/CFT obligations. The changes address key obstacles to effective AML/CFT supervision that we identified since the Guidelines were first issued, including for example through our implementation reviews and Breach of Union Law work. Specifically, the revised version contains greater detail on risk assessments, the translation of risk assessments into a supervisory strategy and inspection plan, and the use of different tools to meet supervisory objectives.

The consultation is open until 17 June 2021.

EBA consults on new Guidelines on the authorisation of credit institutions (07/04/2021)

In March, we launched a public consultation on a common assessment methodology for granting authorisation as a credit institution under the Capital Requirements Directive (CRD). The draft Guidelines set out how supervisors should consider ML/TF risk when assessing applications for authorisation and emphasise the importance of cooperation between prudential and AML/CFT supervisors, and between supervisors and other public bodies in this context.

The consultation is open until 10 June 2021.

The EBA takes steps to address unwarranted ‘de-risking’ (07/04/2021)

In March, following evidence we gathered in our call for input last year, we published three regulatory instruments in which we address de-risking practices. In these instruments, we clarify that compliance with anti-money and countering terrorist financing (AML/CTF) obligations in EU law does not require financial institutions to refuse, or terminate, business relationships with entire categories of customers that they consider to present a higher ML/TF risk. We also set out steps that financial institutions and competent authorities should take to manage risks associated with individual business relationships in an effective manner.

EBA to consult on three new AML/CFT instruments in Q2 2021 (07/04/2021)

We are preparing to launch public consultations on three new AML/CFT instruments in Q2, 2021:

• Draft regulatory technical standards on our new AML/CFT central database, which will specify the type of information this database will contain and how we will use and disseminate this information in line with our legal mandate to lead, coordinate and monitor the EU financial sector’s fight against ML/TF;

• Draft Guidelines on the cooperation between prudential supervisors, AML/CFT supervisors and FIUs; and

• Draft Guidelines on the role of AML/CFT compliance officers.

Advising the Commission on digital finance (07/04/2021)

In September 2020, the European Commission published its Digital Finance Strategy (DFS) accompanied by legislative proposals for markets in crypto-assets (MiCA) and digital operational resilience (DORA). The DFS sets out significant new roles for EBA including in relation to digital identities, RegTech and SupTech and ensuring the ongoing suitability of the EU’s regulatory and supervisory framework.

EBA publishes first AML/CFT Q&As (17/12/2020)

In July, we expanded the scope of our Questions and Answers (Q&A) process and tool to enable external stakeholders to submit questions to the EBA about the interpretation and application of the Anti-Money-Laundering Directive and the legal instruments we have issued in its support. In October, we published our first Q&As on EU Delegated Regulation 2019/758. These particular Q&As were about the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries.

EBA publishes Opinion on tackling ML/TF risks as part of the SREP context (17/12/2020)

In November, we fulfilled another objective of the 2018 EU Council Action Plan on AML/CFT, by issuing an Opinion that sets out how prudential supervisors should consider money laundering and terrorist financing (ML/TF) risks in the context of the prudential Supervisory Review and Evaluation Process (SREP). We stressed the need for prudential supervisors to develop a sufficient understanding of ML/TF risks to enable them to identify these risks and related prudential concerns and gave examples how to do so. We also expect prudential supervisors to cooperate effectively and in a timely manner with AML/CFT supervisors to exchange information on ML/TF risks and to assess the implication of those risks for the safety and soundness of the institutions they supervise.

EBA sets out how to mitigate ML/TF risks during bank failures (17/12/2020)

In December, we published an Opinion on the interplay between the AMLD and the Deposit Guarantee Schemes Directive.

EBA publishes first ever AML/CFT colleges report (17/12/2020)

In December, we published our first report on the functioning of AML/CFT colleges. This report summarises examples of good and poor practice that the EBA observed, and makes recommendations to competent authorities to contribute to the effective operation of AML/CFT colleges going forward.

Over the last year, competent authorities in the EU have begun to set up regular, formal meetings of the supervisory authorities that are responsible for the AML/CFT supervision of the same financial institution as required by the ESAs’ AML/CFT colleges Guidelines. 10 such colleges have been set up so far. The EBA is a member of all colleges and provides technical support to competent authorities as appropriate.

Risk assessments of competent authorities (17/12/2020)

In December, we published the methodology we will use to carry out risk assessments, which is a new power we have received in January 2020 under Article 9a of our founding Regulation.

We will use 9a risk assessments to understand how well equipped competent authorities are to tackle emerging ML/TF risks, and to ensure that those risks are managed in a timely, effective and coordinated manner across the single market.

The FinCen Files – implications for financial institutions and their AML/CFT supervisors (17/12/2020)

Over the last months, there have been a number of media reports relating to the unlawful disclosure of suspicious transaction reports (STRs) that were submitted to the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCen). FinCen is the US Financial Intelligence Unit (FIU) responsible for collecting and analysing reports from obliged entities, including financial institutions. As with other reports from multiple mainstream media that relate to ML/TF, and in line with the risk-based approach set out in Directive (EU) 2015/849 (AMLD), financial institutions and competent authorities responsible for supervising these institutions’ compliance with their AML/CFT obligations in the EU should consider the impact of information contained in these reports on their work and take steps to address any ML/TF risks they have identified.

AML/CFT training for supervisors (17/12/2020)

The EBA is providing training to EU supervisors that have recently joined national competent authorities or are new to AML/CFT. This event will introduce participants to the legal and institutional AML/CFT framework in the European Union, and provide an overview of the tools supervisors in the EU have at their disposal to prevent the use of the EU’s financial system for ML/TF purposes. The training will take place on 15 February 2021 and is open to staff from EU competent authorities in the financial services sector.

Investigating the use of RegTech solutions in the AML/CFT context (17/12/2020)

We carried out a survey of financial institutions to understand how they use RegTech solutions to comply with their legal and regulatory obligations, including in relation to AML/CFT. We are now looking to understand in more detail the obstacles that prevent the development, implementation and roll-out of effective and cost-efficient RegTech solutions. Findings from this study will inform our work on RegTech. They will also help us take forward our work on guidelines on remote customer identification, which the European Commission asked us to prepare in the context of its Digital Finance Strategy.

All the best for 2021 (17/12/2020)

The EBA responds to the EU Commission’s Call for Advice on the future EU AML/CFT framework (07/09/2020)

In September, we responded to the EU Commission’s Call for Advice on ‘defining the scope of application and the enacting terms of a regulation to be adopted in the field of preventing money laundering and terrorist financing’.

In our advice, we set out how the EU’s legal framework should be amended to tackle vulnerabilities linked to divergent national approaches and gaps in the EU’s AML/CFT defences. We recommend that the Commission establish a single rulebook with a robust set of common rules that support the implementation of a proportionate and effective risk-based EU AML/CFT regime.

The EBA assesses the drivers, scale and impact of de-risking (09/09/2020)

Financial institutions have to put in place and maintain policies and procedures to comply with their legal obligations. These include policies and procedures to identify and manage risks associated with money laundering and terrorist financing. Where a financial institution considers that it cannot effectively manage those risks, it may decide to restrict access to or withdraw from providing a particular financial product or service, or servicing a particular customer or category of customers. This is referred to as ‘de-risking’.

In June, we launched a call for input to understand the drivers, scale and impact of derisking. We also hosted a virtual panel in September on the impact of de-risking on civil society.

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The EBA extends its Q&A tool to the AMLD (07/09/2020)

In July, we expanded the scope of our Questions and Answers (Q&A) process and tool to enable external stakeholders to submit questions on the Anti-Money-Laundering Directive and the legal instruments we have issued in its support. Submitted questions and our answers will be published on our website.

This tool is open to all. You can submit your question here.

The EBA launches consultation on revised guidelines on internal governance (31/07/2020)

In July, we launched a public consultation on changes to our Guidelines on internal governance. Our proposed amendments reflect new provisions in the CRDV and IFD, and include guidance on the steps institutions should take to ensure that ML/TF risks are addressed as part of their internal governance arrangements and risk management frameworks.

EBA and ESMA consult on revised fit and proper guidelines (31/07/2020)

In July, we launched a public consultation on changes to the joint EBA/ESMA Guidelines on the assessment of the suitability of members of the management body and key function holders of credit institutions, financial and mixed financial holding companies and investment firms. The revised guidelines set out how competent authorities and institutions should take into account ML/TF risks when assessing a person’s fitness and propriety at application, and on an ongoing basis where they have reasonable grounds to suspect that an institution has been involved in ML/TF.

The public consultation is open until 31 October 2020.

Understanding the uses and limitations of RegTech solutions (12/08/2020)

We are carrying out a survey of financial institutions to understand how they use RegTech solutions to comply with their legal and regulatory obligations, including in relation to AML/CFT. We will use responses to this survey to map activity in this area, identify barriers and risks related to the use of RegTech solutions and assess what we can do to facilitate the adoption and scaling up of RegTech solutions across the EU.

We are particularly interested in responses from financial institutions that are using, or are in the process of developing, RegTech solutions to monitor business relationships or transactions for AML/CFT purposes. We would also like to hear from ICT third party providers that are offering or developing such solutions.

Update on actions taken in response to COVID-19 and associated ML/TF risks (07/09/2020)

At the end of March, the EBA issued a statement on actions to mitigate financial crime risks in the context of the COVID-19 pandemic. We called on competent authorities to adapt the use of their supervisory tools temporarily to ensure ongoing compliance by credit and financial institutions with their AML/CFT obligations.

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Finalising the Risk Factors Guidelines (07/09/2020)

Our consultation on changes to the Risk Factors Guidelines closed in July. We received 58 responses, and feedback from more than 100 participants at our public hearing in June.

We are now assessing the feedback we received.

Consultation responses can be accessed on our website.

Digital platforms industry survey (09/09/2020)

In 2020/21, the EBA is analysing the use of digital platforms for the marketing, distribution and conclusion of contracts for banking, payments, e-money and credit products and services in the EU. This forms part of our thematic work on FinTech and our ongoing monitoring of the regulatory perimeter. In this context, we will be soon launching a survey of industry participants to understand how they are using, or expecting to use, digital platforms. As part of this wider industry outreach, we are interested in any ML/TF risks or opportunities identified. The EBA will publish in mid-2021 a report setting out the findings from its work on digital platforms.

FinCen Leaks (22/09/2020)

We have taken note of the publication of articles based on Suspicious Activity Reports that were submitted to the US Financial Crimes Enforcement Network (the so-called ‘FinCen leaks’). We will be looking at the implications for supervisors and financial institutions in the EU.