The European Banking Authority (EBA), an independent regulatory body focusing on financial stability in the European Union banking sector, has launched a public consultation on New Anti-money wash (AML) and counteracts the financing of terrorism (Cft) rules.
The consultation, announced On March 6, feedback is looking for four drafts of regulatory technical standards (RT) which will be part of EBA’s response to an ‘Call for advice“It received from the EU’s executive arm, the European Commission, last spring.
On May 30, 2024, EU adopted Its package with new AML/CFT rules, which included expanding the AML rules to new “guilty devices”, including most of Digital asset sector; Tighter requirements for due diligence; Set a limit of € 10,000 ($ 10,891) to cash payments; and set up a new European agency for anti-money wash and counteract the financing of terrorism (AMLA) that will have supervisory power over high-risk units in the financial sector.
On March 12, before publishing the new regime, the European Commission asked EBA to advise four specific mandates from the new Amla. After providing their advice, EBA is now seeking feedback on its proposed RTs.
The four mandates in question are:
- How risk is assessed in order to choose for direct surveillance-for which EBA proposes that AML first decide which institutions are eligible for direct surveillance, taking into account their cross-border activities.
- The methodology for assessing the risk profile for guilty units – for which EBA proposes to introduce a “harmonized method that all national supervisory authorities will apply when assessing the institution’s inherent risks.”
- The customer’s due diligence (CDD) requirements -for which EBA proposes a framework where institutions can choose the most appropriate approach, as long as it remains in accordance with AML regulation. For example, listing EBA type of documents and sources of information as institutions should consult, rather than specifying documents and sources themselves.
- Functional sanctions (monetary sanctions) – for which EBA proposes measures to ensure that AML/CFT violations are similarly assessed by all supervisors across the EU and that the enforcement measures are “proportionate, deterrent and effective.”
The consultation required “interested stakeholders” to submit comments to EBA by June 6, 2025. All grants received will be published at the end of the consultation period and EBA will submit their response to the European Commission on October 31, 2025.
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