European Banking Authority consults on four technical standards to operationalise the EU’s new AMLA-led AML/CFT regime

The European Banking Authority (EBA) has launched a public consultation on four draft Regulatory Technical Standards that form part of its response to the European Commission’s Call for Advice on the EU anti-money laundering and countering the financing of terrorism (AML/CFT) package. The drafts are intended to shape how institutions and supervisors will meet AML/CFT obligations under the new regime and to support the rapid and effective start of the new EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). The proposed standards cover: how AMLA would determine which institutions are subject to direct supervision, using a two-step approach based on cross-border activity and then outcomes from a harmonised ML/TF risk assessment methodology; a harmonised entity-level methodology for national supervisors to assess inherent risk, control quality and residual risk; a framework for customer due diligence information requirements that lists types of documents and information sources rather than prescribing specific items; and common indicators and criteria for setting pecuniary sanctions and administrative measures, including a methodology for periodic penalty payments. The consultation runs until 6 June 2025, with a virtual public hearing scheduled for 10 April 2025. The EBA plans to submit the final technical standards to the European Commission by 31 October 2025.