AMLA Finalises AML/CTF Enforcement Standards

The framework aims to ensure that similar breaches receive comparable enforcement outcomes across Member States while maintaining proportionality, effectiveness and dissuasiveness.

Supervisors will undertake a 3-step process as part of the new framework:

1. Assessing breach gravity: Evaluating factors including duration, repetition, and impact;
2. Categorising severity: Classifying breaches into one of four categories; and
3. Determining sanctions: Considering both the violation level and the degree of cooperation shown.

➡️ Cross-Sector Application: The standards apply to all entities subject to EU AML/CFT rules, including both financial and non-financial sectors; and

➡️ Direct Application: Once adopted by the European Commission (EC), the standards will become directly applicable across all EU Member States.

✅ Firms under increased regulatory scrutiny, or those who expect to be directly supervised by AMLA should review the RTS, taking note of the specific factors which could aggravate or diminish penalties, adjusting their approach accordingly to minimise enforcement risk.