On 4 October 2019, the three European Supervisory Authorities (EBA, EIOPA and ESMA) (the ESAs) published their second joint opinion on the risks of money laundering (ML) and terrorist financing affecting the European Union’s financial sector.
Drawing on data and information provided by national anti-money laundering (AML) and countering the financing of terrorism (CFT) competent authorities, the ESAs found that the monitoring of transactions and suspicious transactions reporting still raise concerns, particularly in sectors where a financial institution's business model is based on frequent transactions. This opinion contributes to strengthening the EU's AML and CFT efforts.
To tackle these risks and concerns effectively, the ESAs consider that competent authorities must play a more active role and enhance their engagement with the private sector to develop a better understanding of new technologies, products and services available to credit and financial institutions. Competent authorities should also consider whether they have a sufficient understanding of risks and controls in those sectors where they have carried out only limited assessments and may need to review their supervisory approach.
The press release can be found here.
The joint opinion can be found here.