Banca d'Italia aids new EU AML supervisory architecture
Sebastiano Laviola, Head of Anti-Money Laundering Supervision and Regulation Unit at Banca d'Italia, discussed the new European AML/CFT regulatory framework. He highlighted the challenges for operators and authorities and Banca d'Italia's supervisory actions.
Europe's AML framework takes shape
The new European anti-money laundering and counter-terrorist financing (AML/CFT) framework, comprising the AMLR, AMLD6, and AMLA, addresses the transnational nature of money laundering.
The European Anti-Money Laundering Authority (AMLA) is now operational, having published its first Single Programming Document for 2026-2028.
This plan outlines the completion of the regulatory framework through secondary legislation and the development of harmonized analytical and supervisory methodologies.
From July 10, 2027, the Single Rulebook will govern AML obligations for intermediaries, requiring prompt adaptation of organizational structures, internal policies, risk assessment models, and operational processes.
By 2028, AMLA will directly supervise up to forty cross-border groups and intermediaries, with national authorities like Banca d'Italia contributing to the selection process.
Evolving risks, adapting defenses
The banking system faces evolving money laundering and terrorist financing risks, driven by geopolitical shifts and technological innovation.
Regional conflicts fuel large-scale illicit cross-border financial flows, necessitating robust sanctions screening systems.
Financial and technological innovation, including crypto-assets, AI for masking illicit activities, and cybercrime, facilitates anonymous and transnational financial crimes.
These technologies also offer tools to strengthen prevention and combat measures.
Banca d'Italia's supervisory actions, including a 70 percent increase in off-site inspections between 2022 and 2025, confirm a solid understanding of AML/CFT risks within the Italian banking sector, as noted by the FATF.
A necessary, costly evolution
The new European AML framework is crucial for tackling transnational financial crime, but it imposes significant compliance costs on financial institutions.
While harmonization offers long-term benefits, the tight implementation timeline demands proactive adaptation from banks.
Simplification, especially in customer due diligence, remains a key challenge for future legislative efforts.