Handover of anti-money laundering powers marks major EU milestone

The European Banking Authority (EBA) and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism have completed the transfer of all AML/CFT mandates and functions.

This handover marks a significant milestone in the European Union’s fight against financial crime and concludes the stand-alone mandate held by the banking authority since 2020.

The transition is a central component of the new European Union anti-money laundering package, which established the new authority at the heart of an integrated, European system of supervision.

Both authorities have worked closely over the recent period to ensure a seamless and timely transition of responsibilities.

Key tools and expertise have been moved to the new agency, including the EuReCa database, various supervisory insights, and detailed risk assessments.

All existing guidelines and standards established by the banking authority will remain in force until they are officially replaced by the new body, which guarantees regulatory continuity for the industry.

Under the newly active framework, the new authority will complete the Single Rulebook for the European Union and advance supervisory convergence across member states.

The agency is also tasked with coordinating the work of Financial Intelligence Units to enhance the cross-border exchange of vital financial intelligence.

A major feature of the new regime is that the authority will directly supervise 40 of the most complex financial institutions or groups operating within the European Union.

The banking authority will continue to address money laundering risks through prudential regulation, working hand in hand with the new agency to maintain a coherent framework.

To facilitate this ongoing partnership, the two authorities have put in place a strong cooperation framework through a formal Memorandum of Understanding.

This agreement enables regular information exchange, the launching of joint initiatives, and consistent engagement with the private sector.

Together, the two bodies aim to deliver a more effective and consistent response to financial crime across the entire union.

The completion of this transfer represents the end of the first phase of the integrated European system designed to protect the financial sector.

Future efforts will focus on the finalisation of the Single Rulebook to ensure that no regulatory gaps remain between national jurisdictions.

The direct supervision of the most complex groups is expected to significantly reduce the risk of systemic financial crime within the single market.

By centralising these functions, the European Union hopes to create a more formidable barrier against illicit financial flows.

The ongoing collaboration between the two agencies ensures that anti-money laundering efforts are fully integrated into broader banking supervision activities.

The transition was managed through a dedicated task force to ensure that no data or expertise was lost during the move.