EBA response to the European Commission’s Call for Advice on six AMLA mandates
On 30 October 2025, the European Banking Authority (EBA) issued its formal response to the European Commission’s Call for Advice (CfA) concerning the key regulatory mandates that will underpin the work of the new EU Anti-Money Laundering Authority (AMLA). The advice outlines a proportionate, risk-based framework to ensure a consistent and effective start for AMLA’s operations in 2026.
What the Call for Advice Covers
In March 2024, the European Commission requested the EBA’s input on six specific mandates that AMLA will later adopt. These relate to draft Regulatory Technical Standards (RTS) and technical advice shaping how financial institutions and supervisors across the EU will operate under the new AML/CFT framework:
- RTS on the assessment of inherent and residual ML/TF risks – establishing a common methodology for national supervisors to evaluate entity-level risk profiles.
- RTS on AMLA’s risk assessment for direct supervision – defining how AMLA will identify which financial institutions it will directly oversee.
- RTS on Customer Due Diligence (CDD) – setting out uniform information and verification requirements for standard, simplified, and enhanced due diligence.
- RTS on pecuniary sanctions, administrative measures, and periodic penalty payments – harmonising the classification of breaches and the criteria for fines and enforcement actions.
- Technical advice on base amounts for pecuniary fines – providing guidance on how sanctions should be calibrated relative to turnover and entity type.
- Technical advice on group-wide policies and procedures – defining minimum standards for information sharing within corporate groups.
Core Principles of the EBA’s Approach
The EBA’s proposals are guided by five overarching principles:
- Proportionate, risk-based regulation: Supervisory intensity and compliance requirements should reflect the level of ML/TF risk.
- Workable outcomes: Measures should be practical, avoiding unnecessary burden while maintaining effectiveness.
- Technological neutrality: The standards are principle-driven and compatible with any digital or analogue system.
- Maximum harmonisation: Ensuring comparability and alignment across all EU member states and sectors.
- Continuity and efficiency: Building on existing EBA standards to reduce disruption and accelerate convergence.
Key Highlights of the Six Mandates
1. Harmonised Risk Assessment (Article 40 AMLD6)
A uniform scoring methodology will classify entities into four risk levels (low → high) using around 100–150 data points. Supervisors will review entities annually or every three years depending on their size and exposure.
2. Selection for Direct AMLA Supervision (Article 12 AMLAR)
AMLA will directly supervise cross-border institutions active in at least six member states. The EBA proposes thresholds of 20,000 customers or €50 million transaction volume per host country to define “material” activity.
3. Customer Due Diligence (Article 28 AMLR)
The RTS will harmonise CDD, SDD, and EDD rules across the EU. Instead of prescribing specific documents, the EBA focuses on types of reliable information. Existing clients must be updated using a risk-based approach within a five-year transition period.
4. Sanctions and Enforcement (Article 53 AMLD6)
To align supervisory enforcement, the RTS introduce four severity categories for breaches and common criteria for setting fines and administrative actions. Senior management accountability and individual sanctions are explicitly recognised.
5. Base Amounts for Pecuniary Fines (Article 53 (11) AMLD6)
Guidelines will ensure that similar breaches result in comparable sanctions across member states, using turnover and entity type as reference points.
6. Group-Wide Information Sharing (Article 16 (4) AMLR)
The EBA recommends a balanced approach that allows group entities to share customer information, suspicious transaction data, and risk typologies—while observing strict data protection safeguards, especially for transfers to third countries.
Why It Matters
The EBA’s proposals lay the groundwork for a unified EU AML/CFT regime. Once adopted by AMLA and endorsed by the Commission, these standards will:
- Strengthen cross-border supervision,
- Reduce regulatory fragmentation,
- Ensure fair competition across the single market, and
- Reinforce the integrity of the EU’s financial system.
Financial institutions—especially those operating internationally—should prepare now for new data, governance, and reporting requirements under AMLA’s supervision.
Next Steps
- 31 December 2025: EBA’s AML/CFT mandate transfers to AMLA.
- 10 July 2026: AMLA expected to finalise and publish the RTS.
- 1 July 2027: First wave of directly supervised entities selected.
The EBA’s response to the European Commission’s Call for Advice marks a decisive step toward a more coherent, risk-based EU AML/CFT system. By harmonising supervisory methods, sanctions, and due diligence rules, the proposals aim to make the fight against financial crime both more efficient and more predictable. Institutions should review their AML/CFT frameworks now to ensure readiness for the new AMLA-led regime.
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