EBA's new mandate to lead AML/CFT supervision efforts across the entire EU financial sector

Luxembourg

Following the entry into force of Regulation (EU) 2019/2175 of the European Parliament and of the Council on 1st January 2020 (the “Regulation”), the European Banking Authority (“EBA”) is from now on entrusted with all anti-money laundering and counter terrorist financing (“AML/CFT”) mandates previously held by the three European supervisory authorities (i.e. the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the EBA).

The Regulation therefore bolsters the EBA’s powers by introducing a legal duty for EBA to contribute in the fight against money laundering and the financing of terrorism (“ML-TF”) and to take a leading, coordinating and monitoring role at European Union level to protect the financial sector from ML/TF risks.

The EBA published on its website a factsheet explaining its new role and how it will act in performing its consolidated functions, available here

As indicated by the EBA itself, it is now “solely responsible for leading, coordinating and monitoring AML/CFT efforts across the EU financial sector” with the objective of ensuring that the EU is a “hostile place for criminals”.