On 5 February 2020, the European Banking Authority (EBA) published its first report on the competent authorities’ approach to the anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of banks.
This Report finds that all competent authorities in this year’s sample worked hard to apply the risk-based approach to AML/CFT. Several competent authorities had made tackling money laundering and terrorist financing (ML/TF) one of their essential priorities and, in a number of cases, significant reforms were in progress to reinforce their approach with regards to the AML/CFT supervision of banks.
The competent authorities in the sample were aware of the need to address international and national risks in their assessments, but many found incorporating these risks in their supervisory risk assessments challenging. The EBA considers that assessing ML/TF risks does not have to be complex to be meaningful and effective.
EBA also discovered that not all competent authorities were able to cooperate effectively with domestic and international stakeholders to draw on synergies and to position AML/CFT in a broader national and international supervisory framework.
As of 1 January 2020, the EBA is solely responsible for leading, coordinating and monitoring AML/CFT efforts across the entire European Union’s financial sector, as part of its new role, which is further explained in the newly issued factsheet.
The press release can be found here.
EBA’s report can be found here.
Factsheet on EBA’s new role can be found here.