EBA Reports on AML/CFT Supervision Approaches

The report summarises findings from an assessment of 14 NCAs across 9 EU member states.

Key findings include:

• Weaknesses in entity-level and sectoral level risk assessment methodologies with risk factors often being inaccurate or incomplete;
• A lack of strategic approach in addressing ML/TF risks with difficulty finding the right balance between different supervisory tools;
• Ineffective and incoherent enforcement processes which did not lead to deterrence;
• Despite an increase in cooperation between NCAs, collaboration with Financial Intelligence Units (FIUs) and tax authorities remained limited; and
• Differing approaches when it comes to the identification and consideration of ML/TF risks.

✅ Firms can review the report to better understand the EBAs approach towards AML/CFT supervision and assess whether updates to their control frameworks are necessary to better align with the associated risks.