EBA Finds Significant Improvement in AML/CFT Supervision of Banks Across the EU

The European Banking Authority (EBA) has published a new Report revealing that supervisory oversight of anti-money laundering and countering the financing of terrorism (AML/CFT) in banks across the EU has significantly improved over the past six years. The findings reflect the progress made by competent authorities in adopting a risk-based approach to supervision, following a series of in-depth reviews and recommendations issued by the EBA since 2019.

According to the Report, most competent authorities have now developed dedicated AML/CFT strategies, structured supervisory plans and detailed manuals designed to guide supervisors and promote consistency across the sector. These authorities are also engaging more effectively with domestic and international stakeholders, contributing to a more coordinated and robust supervisory environment.

While the overall picture is positive, the EBA noted that some Member States continue to implement reforms to fully address earlier recommendations. In certain jurisdictions, further enhancements are still required to strengthen cooperation mechanisms between AML/CFT and prudential supervisors.

The Report highlights substantial progress in aligning national supervisory practices with EBA standards and improving the use of supervisory tools. Authorities have also intensified collaboration and information exchange with financial intelligence units, tax authorities and other public bodies involved in financial oversight.

The EBA emphasised that this work provides a strong foundation for the forthcoming EU Anti-Money Laundering Authority (AMLA), which will assume responsibility for indirect AML/CFT supervision under the new EU framework. The Report forms part of the EBA’s formal handover to AMLA, ensuring that the new authority benefits from the insights gained through the EBA’s six-year review programme.

Conducted under Articles 1, 8(1), 9a and 29 of the EBA Regulation, the reviews aimed to promote consistent and effective supervisory practices across Member States and prevent the misuse of the EU’s financial system for money laundering or terrorist financing.

This final Report marks the conclusion of the EBA’s multiannual review project and provides AMLA with an up-to-date assessment of AML/CFT supervision in the EU, reinforcing the regulatory framework that will guide future oversight efforts.

Read the press release here.