EBA has a legal duty to lead, coordinate and monitor
EU AML/CFT efforts of all EU financial institutions and competent authorities. The EBA making full use of its powers, continues to
lead the development of EU AML/CFT policy and supports its effective implementation to foster an effective,
risk-based approach to AML/CFT.
In its first response published in August 2020, EBA responses to the
EU Commission Action Plan focusing on 3 out of the 6 pillars of the Commission’s Action Plan for: (1) effective implementation of existing rules, (3) EU-level supervision, (6) a stronger EU in the world. In its latest publication issued on 10th September 2020, the EBA provides its advice regarding to the second pillar of the
Action Plan for a Single EU Rulebook and sets out how the EU legal framework should be strengthened to tackle vulnerabilities linked to divergent national approaches and gaps in the EU defences against
money laundering and
terrorist financing (ML/TF).
In EBA’s view, the
gaps created by distinctive approaches transposing EU AML/CFT law into
national law should be reduced by implementing a
harmonised EU legal framework that can be enforced consistently across the single market.
The EBA additionally recommends a pragmatic approach with regard to the
EU-level AML/CFT supervision of obliged entities. The EBA endorses Commission to leverage on competent authorities’ expertise and knowledge of their local risks than to create a new agency that would supervise all the obliged entities. Currently, the scope of the AML Directive covers both
financial institutions and designated
non-financial businesses and professions (DNFBPs). Hence, the EBA is concerned that the risk bringing in scope of EU supervision all obliged entities from sectors currently outside the scope of any central EU agency will delay the operation of the EU-level
AML/CFT supervisor. Furthermore, EBA supports that the supervision should start with the
financial sector and gradually extend its scope as the
supervisor matures and its
Furthermore, EBA supports that an effective functioning of an
EU – level AML/CFT supervisor will be successful when its roles and powers are combined with the ongoing role of
National Competent Authorities (NCAs) in a hub and spoke approach, in which responsibilities for supervisors at the national and European levels are clearly assigned.
Commission to establish a single
rulebook where a robust set of common rules supports the implementation of a proportionate and effective
risk‐based EU AML/CFT regime.
In specific EBA proposes :
Finally, EBA points out that a
harmonized EU Legal framework needs to promote a
clearly defined relationship between the future EU-level Supervisors and the NCAs and that adequate powers and resources are implemented in order to carry out their functions efficiently. EBA recommends that the future AML/CFT framework shall adopt a
European utmost harmonization, a
uniformized supervision practice between NCAs to impose the right risk-based compliance programs.
Avantage Reply stands ready to provide
technical input and support to its clients always in line with the latest developments of
legal regulatory framework. Avantage Reply highlights the importance of being well – equipped to face in future a more stringent AML/CTF
supervision at EU and national level.