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EBA Finds AML/CFT Colleges Improving but Lacking Coordination

  • Writer: OpusDatum
    OpusDatum
  • 6 days ago
  • 2 min read
Logo of the European Banking Authority, featuring "eba" in large blue letters and full name in smaller text with a vertical yellow line.

The European Banking Authority (EBA) has published its fifth and final Report on the Functioning of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Colleges, finding that the framework has become an effective tool for improving information exchange and strengthening AML/CFT supervision across the European Union. However, the EBA noted that one of the key objectives of the system remains unfulfilled — the ability to address issues affecting multiple group entities in a coordinated manner.


AML/CFT colleges were established under Directive (EU) 2018/843 (AMLD) to enhance cooperation among supervisory authorities overseeing cross-border financial institutions. The European Supervisory Authorities’ (ESAs) Guidelines (JC 2019 81), published in December 2019, provided the operational framework for these colleges, setting out how competent authorities should exchange information and coordinate oversight.


The EBA’s latest assessment draws on its monitoring of AML/CFT colleges, which serve as permanent structures designed to facilitate cooperation between supervisors of cross-border institutions. The Report found that competent authorities continue to use the colleges to share relevant information that enhances supervisory effectiveness. However, progress has been limited in tackling two key priorities previously identified by the EBA:


  • Applying the risk-based approachSome supervisors have not fully adapted the functioning of their AML/CFT college meetings — including the frequency and method of information exchange — according to the level of money laundering and terrorist financing (ML/TF) risk presented. This has limited their ability to prioritise resources for the most strategic colleges.


  • Ensuring meaningful and systematic discussions on common approachesMany colleges still fall short of identifying shared ML/TF risks and AML/CFT issues. As a result, competent authorities have struggled to hold meaningful discussions or agree coordinated supervisory actions.


From 1 January 2026, responsibility for monitoring AML/CFT colleges will transfer to the new Anti-Money Laundering Authority (AMLA). The findings from this final EBA report will inform AMLA’s development of a more unified supervisory framework.


Read the report here.

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