EU: EBA Launches Public Consultation on New Anti-Money Laundering and Counter-Terrorist Financing Rules

 

The European Banking Authority (EBA) has opened a public consultation on four draft Regulatory Technical Standards (RTS) as part of its response to the European Commission’s Call for Advice. These technical standards will play a key role in shaping the EU’s new anti-money laundering and countering the financing of terrorism (AML/CFT) framework. The consultation will remain open until 6 June 2025.

The proposed RTSs focus on four key areas:

• Supervision by the new AML Authority (AMLA): The EBA suggests a two-step process for AMLA to determine which institutions fall under its direct supervision. First, AMLA will assess institutions based on their cross-border activities. Then, it will consider the results of a standardized ML/TF risk assessment methodology.
• Risk assessment methodology: The EBA proposes a uniform approach for national supervisors to evaluate financial institutions’ inherent ML/TF risks, control measures, and residual risks. This harmonization will enhance consistency across the EU and reduce the regulatory burden for cross-border institutions.
• Customer due diligence requirements: The EBA aims to balance effective AML measures with cost efficiency by allowing institutions flexibility in how they meet due diligence requirements. Instead of prescribing specific documents, the EBA provides guidance on types of sources institutions should consider.
• Sanctions and enforcement measures: The EBA is developing indicators and criteria for setting fines and administrative measures, ensuring consistency and proportionality in enforcement actions across EU member states.

The European Commission has tasked the EBA with preparing these technical standards to support the swift and effective launch of AMLA. The final standards will be submitted to the Commission by 31 October 2025.

Consultation Process

Stakeholders can submit comments via the EBA’s consultation page until 6 June 2025. A virtual public hearing will be held on 10 April 2025 at 14:00 CET, with registration open until 8 April 2025 at 16:00 CET.

Background

The EBA’s work on these RTS stems from the European Commission’s 12 March 2024 Call for Advice, covering regulatory mandates under AMLD6, AMLAR, and AMLR. These are part of the broader AML/CFT package, published in the Official Journal of the EU on 19 June 2024. This legislative package establishes a new EU AML agency, standardizes national supervisory approaches, and introduces the Single AML/CFT Rulebook—fundamentally transforming AML/CFT efforts across the EU.