“While innovation can help make the fight against financial crime more streamlined and effective, the sector’s drive for innovation and growth may be outpacing its ability to manage the risks of money laundering and terrorist financing”, concluded the European Banking Authority (EBA) in its report on Monday 28 July. Credit and payment institutions and the electronic money sector are particularly exposed.
In this context, the unthinking application of regulatory technology solutions (‘RegTech’) in the fight against money laundering and terrorist financing and the risks of spill-over resulting from the growing interconnection between traditional and innovative financial services providers are of particular concern. The EBA referred in particular to crypto assets service providers (CASPs).
It concluded that there is a need for regulatory clarification and more consistent application of risk-based approaches across the EU financial sector. This will be particularly important when the legal and regulatory changes resulting from the new money laundering package come into force in 2027 (see EUROPE 13420/20).
Read the report: https://aeur.eu/f/i13 (Original version in French by Anne Damiani)