EBA has published its response to the European Commission’s call for advice on how to strengthen the AML/CFT legal framework. It feels the only way to tackle vulnerabilities that come from divergent practices between Member States and gaps in EU defences is for the Commission to establish a single rulebook. It says this should comprise:
- a Regulation wherever evidence suggests national difference in interpretation of laws has had a significant and adverse impact on the use of the EU’s financial system for money laundering and terrorist finance – it notes CDD and wider systems and controls requirements in this context, and enforcement;
- greater powers where these are needed;
- a review of the entities currently within the scope of the regime; and
- clarification of wider financial regulatory provisions to ensure AML/CFT is consistently addressed.