Buch urges deeper cooperation between AMLA and ECB supervision
Claudia Buch, Chair of the ECB Supervisory Board, emphasized the critical need for deeper cooperation between the new European Anti-Money Laundering Authority (AMLA) and ECB Banking Supervision. Speaking at a workshop in Frankfurt, she highlighted the increasing risks from money laundering and terrorist financing in a digitalised environment.
AMLA's mandate to reduce fragmentation
The European Anti-Money Laundering Authority (AMLA), established last year, is set to significantly reshape money laundering supervision in the EU.
Its mandate is crucial as geopolitical risks have risen and digitalisation has increased banks' exposure to money laundering and terrorist financing (ML/TF).
Buch highlighted that ML/TF risks directly impact prudential supervision, potentially exacerbating business, credit, legal, operational, and reputational risks, and in severe cases, threatening a bank's viability.
AMLA will improve cooperation across supervisors and reduce fragmentation, assuming direct supervisory responsibilities for high-risk credit and financial institutions from 2028. This will ensure greater consistency, convergence, and effectiveness, similar to the Single Supervisory Mechanism.
The ECB's supervisory tasks exclude ML supervision, making close cooperation with AML/CFT authorities essential for insights into governance failures and control weaknesses relevant for prudential assessments.
A Memorandum of Understanding between the ECB and AMLA, signed in June 2025, provides a formal framework for this cooperation.
Integrating ML/TF risks in a digital age
Effective cooperation extends beyond formal arrangements, requiring practical integration of ML/TF risks into supervisory processes.
The ECB, within its mandate, reflects these risks in its supervision, drawing mainly on information shared by AML/CFT supervisors.
A horizontal AML coordination function, established in 2018, facilitates information exchange and ensures a consistent approach across European banking supervision.
Digitalisation, while beneficial, introduces new vulnerabilities, including rising fraud, anonymous cross-border payments, and increased cyberattacks.
The evolving crypto-asset sector, particularly Crypto-Asset Service Providers (CASPs), faces heightened ML/TF risks due to technological features and cross-border operations.
AMLA will focus on these higher-risk sectors, addressing divergent national approaches that can lead to supervisory fragmentation.
CASPs' increasing interconnectedness with banks necessitates greater convergence in AML/CFT and CASP supervision to limit prudential risk build-up.
Implementation is the true test
The establishment of AMLA marks a crucial step towards a more harmonised and effective anti-money laundering framework in Europe.
However, the success of this ambitious undertaking hinges on seamless day-to-day implementation and genuine information exchange between diverse authorities.
While the legal foundations are laid, overcoming entrenched national differences and rapidly evolving digital threats will demand sustained effort and adaptability.