20 July 2023

Money laundering and terrorism financing can impact the stability of the financial system.

European banking supervision was created following the realisation and supervision fragmented along national lines could threaten the integrity of the financial system and the Single Market within the EU.

A similar realisation underpins the AML/CFT (Anti-Money Laundering/Counter Financing of Terrorism) legislative package designed to implement a strong, harmonised and effective AML regime at EU-level.

In this respect, of great importance will be the future activity of created AMLA (Anti-Money Laundering Authority). The new authority and the new single/rulebook will increase the harmonisation and consistency of AML/CFT supervision and will represent an important step towards a more integrated EU internal market.

AMLA should be a strong and independent authority responsible for the direct supervision of a sufficiently large number of entities. The creation of AMLA is an opportunity for t he EU to further harmonise its AML/CFT framework and promote supervisory collaboration, thereby strengthening the prevention of money laundering and terrorism financing risks.

As for the sanctions, the European Central Bank neither imposes sanctions or restrictive measures nor monitors banks compliance with them. Banks are responsible for implementing and monitoring compliance with the different sanctions regimes.

The European Central Bank, as prudential banking supervisor, monitors the impact of sanctions on bank’s internal governance and conditions.

More: Speech by Elizabeth McCaul, European Central Bank, Brussels, 29 June 2023.

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