According to an opinion of the European Banking Authority (EBA) published on Friday 14 July, anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of payment institutions and the approaches of banks’ competent authorities is not always proportionate to perceived levels of risk or effective overall.
The EBA also considered that, with a few exceptions, awareness of AML/CFT risks is increasing in all sectors under its jurisdiction, but the systems and controls put in place by institutions are not always effective. Monitoring of transactions and reporting of suspicious transactions are particularly weak, and rated as “poor” or “very poor” by between 30% and 50% of competent authorities. Payment and electronic money institutions are among the worst-performing sectors.
In addition, national approaches to the application of restrictive measures are not harmonised and put pressure on institutions’ compliance resources. Institutions in certain sectors and Member States remain largely unsupervised. Legislative developments, such as the AML/CFT package (see EUROPE 13217/17) and the regulation on crypto-asset markets (see EUROPE 13183/4) are creating legal uncertainty and hesitancy on the part of some competent authorities and institutions to invest.
Read the full review: https://aeur.eu/f/82n (Original version in French by Anne Damiani)