EU Completes Transfer of AML/CFT Powers to New Anti-Financial Crime Authority

The European Banking Authority (EBA) and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism have finalized the full transfer of all anti-money laundering and counter-terrorist financing mandates and responsibilities, marking a major step forward in the European Union’s efforts to combat financial crime.

The completion of this handover brings to a close the stand-alone AML/CFT mandate that the EBA has held since 2020 and represents a key milestone in the implementation of the EU’s new anti-money laundering framework. The transition forms a core pillar of the European Union’s AML package, which created the new authority as the centerpiece of an integrated, EU-wide supervisory system.

In the lead-up to the transfer, both authorities worked in close coordination to ensure that responsibilities were moved smoothly and on schedule. As part of the process, essential tools and specialist knowledge were relocated to the new agency, including the EuReCa database, supervisory findings, and comprehensive risk assessments developed under the EBA’s mandate.

To ensure regulatory stability, all guidelines and standards previously issued by the banking authority will remain applicable until they are formally replaced by the new authority. This approach is intended to provide continuity and legal certainty for financial institutions operating across the bloc. Under the newly operational framework, the authority will complete the European Union’s Single Rulebook and push forward supervisory convergence among member states.

The new body will also play a central coordinating role for Financial Intelligence Units, strengthening the cross-border sharing of critical financial intelligence. One of the most significant elements of the new regime is the authority’s power to directly supervise 40 of the most complex financial institutions or groups active within the European Union.

While relinquishing its AML/CFT mandate, the EBA will continue to address money laundering risks through its prudential supervisory role, working closely with the new authority to ensure a coherent and consistent regulatory landscape. To support this cooperation, the two institutions have established a robust framework through a formal Memorandum of Understanding.

This agreement provides for regular information sharing, the development of joint initiatives, and ongoing engagement with private-sector stakeholders. Through this partnership, both bodies aim to deliver a more effective and harmonized response to financial crime across the European Union.

The conclusion of the transfer marks the end of the first phase of the integrated European supervisory system designed to safeguard the financial sector. Attention will now turn to finalizing the Single Rulebook to eliminate potential regulatory gaps between national systems.

Direct oversight of the most complex financial groups is expected to substantially lower the risk of systemic financial crime within the single market. By centralizing these responsibilities, the European Union aims to establish a stronger defense against illicit financial flows.

Ongoing collaboration between the two authorities will ensure that anti-money laundering measures are fully embedded within broader banking supervision. The transition itself was overseen by a dedicated task force, created to guarantee that no critical data or expertise was lost during the transfer process.

By fLEXI tEAM