The European Banking Authority (EBA) has responded to the European Commission’s Call for Advice on key parts of the new EU framework for preventing money laundering and terrorist financing (AML/CFT). The EBA’s advice promotes a risk-based and proportionate approach to support the quick and effective launch of the new Anti-Money Laundering Authority (AMLA).

In March last year, the European Commission asked the EBA to provide input on six regulatory areas that AMLA will later manage. This request covered:

• Draft rules (RTS) on how national supervisors should assess the inherent and residual risks of obliged entities;
• Draft RTS on the risk assessment AMLA will use to decide which institutions it will directly supervise;
• Draft RTS on what customer information obliged entities must collect during due diligence;
• Draft RTS on how supervisors will classify breaches of the new rules by severity and set financial penalties or other measures;
• Preparatory work on two more mandates related to information sharing within groups and determining the base amounts for fines.

Where possible, the EBA chose approaches that ensure effective and efficient regulation. These were developed through wide consultations with stakeholders and close cooperation with EU authorities to make sure the recommendations are both practical and reliable.

Once AMLA and the European Commission adopt these measures, they will form a strong basis for a resilient and effective EU AML/CFT system, aligned with AMLA’s mission and legal objectives.