Shearman & Sterling LLP | FinReg | European Banking Authority Publishes Opinion on Money Laundering Risks
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  • European Banking Authority Publishes Opinion on Money Laundering Risks

    The European Banking Authority has published its latest biennial opinion on money laundering and terrorist financing risks affecting the EU financial sector. Key risks relate to: (i) virtual currencies; (ii) the provision of financial products and services through FinTech firms; (iii) weaknesses in counter-terrorism financing systems and controls; (iv) "de-risking" by firms which leads to riskier customers resorting to alternative payment channels; (v) supervisory divergence; (vi) crowdfunding platforms; (vii) divergent approaches to tackling tax-related crimes; and (viii) the COVID-19 pandemic.

    The EBA proposes actions that EU national regulators may take in relation to credit institutions and other credit providers, payment institutions, e-money institutions, investment firms, fund managers, insurance providers and intermediaries to combat ML/TF risks. Key recommendations include closer monitoring of how ML/TF risks are managed, publishing additional guidance on ML/TF risk factors where there is evidence of widespread compliance failure or weaknesses and conducting more on-site supervision.

    The EBA has also launched an online tool which provides further information on the ML/TF risks covered in the opinion. The EBA has separately published revised Guidelines on the money laundering and terrorist financing risk factors that credit and financial institutions should consider when conducting business relationships and occasional transactions'.

    View the EBAs' opinion.

    View details of the EBA's revised Guidelines on risk factors for money laundering and terrorist financing.

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