On 19 August 2020, the European Banking Authority (EBA) published its response to the European Commission’s (the Commission) action plan for a comprehensive policy on preventing money laundering and terrorism financing (ML/TF). The EBA is of the view that a comprehensive assessment of the current EU Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework is necessary to ensure that the EU and its component parts are equipped to tackle ML/TF more effectively and efficiently.
This response forms part of the EBA’s efforts to contribute relevant technical input to the Commission, and draws on the technical expertise available at the EBA and amongst the newly formed AML Standing Committee, and has been approved by our Board of Supervisors. Specifically, the EBA recommends that the Commission:
- harmonise the EU’s legal framework to reduce the risk of gaps created by divergent approaches to incorporating EU AML/CFT law into national law;
- combine an ongoing role for national AML/CFT authorities with an EU-level AML/CFT supervisor in a hub and spoke approach that builds on national AML/CFT authorities’ expertise and resources, and complement this with effective EU-level oversight for a consistent approach with comparable outcomes; and
- leverage on the EU’s existing AML/CFT infrastructure, including the EBA’s policy, data and information technology resources as well as the EBA’s European and international supervisory cooperation networks
The EBA will continue to provide technical input into the debate as it progresses, including on the details of the new supervisory architecture.
The press release can be found here.
EBA’s response to the EU Commission can be found here.
Our earlier post on EU Commission’s AML/CFT action plan can be found here.