Buch calls for stronger AMLA-ECB cooperation on financial crime
Claudia Buch, Chair of the ECB Supervisory Board, called for stronger cooperation between the European Anti-Money Laundering Authority (AMLA) and ECB Banking Supervision. Speaking at a workshop in Frankfurt, she highlighted the importance of joint efforts to combat money laundering and terrorist financing risks.
AMLA's pivotal role in EU financial oversight
Money laundering and terrorist financing (ML/TF) risks significantly impact prudential supervision, potentially threatening a bank's business, credit, legal, operational, and reputational standing, and even its viability.
AMLA, established last year, aims to improve cooperation and reduce fragmentation in EU money laundering supervision.
From 2028, AMLA will assume direct supervisory responsibilities for high-risk credit and financial institutions, ensuring greater consistency across national frameworks.
While the ECB's mandate excludes direct ML/TF supervision, it relies on cooperation with AML/CFT authorities to gain insights into governance failures and control weaknesses relevant for prudential assessments.
Conversely, prudential supervisors can provide relevant information for AML/CFT oversight.
A Memorandum of Understanding signed in June 2025 between the ECB and AMLA provides a clear framework for this enhanced cooperation on policies, supervisory standards, and the use of supervisory powers.
Digitalisation reshapes risk and supervision
Digitalisation brings benefits but also new vulnerabilities, including rising fraud and anonymous cross-border payments.
Cyberattacks are more frequent.
The crypto-asset sector, especially Crypto-Asset Service Providers (CASPs), faces heightened money laundering and terrorist financing risks.
AMLA will focus on AML/CFT aspects of high-risk sectors like CASPs, aiming to counter fragmentation from divergent national approaches.
CASP interconnection with banks means AML/CFT weaknesses can translate into prudential risk, underscoring the need for greater supervisory convergence.
Banks also use AI tools to monitor ML/TF risks, exploiting potential gains.
A crucial step, but work remains
AMLA's establishment marks a pivotal shift towards more consistent anti-money laundering supervision across the EU.
This enhanced cooperation is vital for prudential authorities to identify and mitigate financial crime risks threatening bank stability.
The immediate challenge now lies in rigorous implementation, ensuring seamless information exchange and coordinated planning for tangible supervisory outcomes.