EBA Consults on Key Money Laundering Technical Standards

The European Banking Authority (EBA) has opened a public consultation on four draft Regulatory Technical Standards (RTS), marking a significant step in implementing the EU’s new Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package. The consultation is open until 6 June 2025, allowing stakeholders to provide feedback on the EBA’s proposed approach.

These technical standards will play a pivotal role in shaping how financial institutions and supervisors comply with their AML/CFT obligations under the revised EU framework. The European Commission has tasked the EBA with drafting these standards to support the effective launch of the new EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). The EBA will submit its final response to the Commission by 31 October 2025.

Background: The New EU Money Laundering Framework

The AML/CFT package, published in the Official Journal of the EU on 19 June 2024, introduces a comprehensive reform of AML/CFT regulations within the EU. It includes:

• A new EU AMLA, responsible for directly supervising selected financial institutions.

• A Single AML/CFT Rulebook, harmonising AML/CFT rules across the EU.

• Enhanced coordination between national AML/CFT supervisors and financial intelligence units (FIUs).

This package is expected to streamline compliance, strengthen enforcement, and enhance the EU’s ability to combat financial crime effectively.

Key Areas of the Draft RTS

The proposed standards cover four core areas essential to the new AML/CFT regime:

• Direct Supervision by AMLA: The EBA outlines how AMLA will determine which financial institutions fall under its direct supervision. This process will involve a two-step approach, first assessing institutions based on their cross-border activities and then applying a harmonised risk assessment methodology to evaluate money laundering and terrorist financing (ML/TF) risks.

• Harmonised ML/TF Risk Assessments: To ensure consistent and comparable risk evaluations across the EU, the EBA proposes a standardised methodology for national supervisors. This approach will assess an institution’s inherent risks, control effectiveness, and residual risks, reducing regulatory burdens—especially for cross-border institutions—by aligning supervisors’ information requests.

• Customer Due Diligence (CDD) Requirements: Under the new AML/CFT framework, institutions will need to obtain and verify high-quality customer information. The EBA proposes a flexible yet standardised framework, allowing institutions to select the most appropriate compliance methods while ensuring alignment with the new AML Regulation. Instead of mandating specific documents, the EBA provides a list of document types and information sources that institutions should consult.

• Sanctions and Penalties Framework: The EBA proposes clear criteria and indicators for determining administrative measures and pecuniary sanctions for AML/CFT breaches. A harmonised methodology for periodic penalty payments aims to ensure enforcement actions are consistent, proportionate, and effective across all EU member states.

Consultation & Next Steps

The EBA invites financial institutions, supervisors, and industry stakeholders to participate in the consultation process by submitting comments through the EBA’s consultation page before 6 June 2025. A virtual public hearing will be held on 10 April 2025 at 14:00 CET, with interested participants required to register by 8 April 2025 at 16:00 CET.

Following the consultation period, the EBA will incorporate feedback before finalising the RTS for submission to the European Commission. All contributions will be published unless respondents request confidentiality.

Read the press release here.