AMF invites financial market participants to take part in the EBA consultation on draft AML/CFT implementing standards

The EBA's draft response to the European Commission consists of a consultation paper incorporating four draft regulatory technical standards (RTS). These drafts and the contributions received during the consultation process will feed into the work of the new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), which will be formally responsible for drawing up these RTS and submitting them to the Commission for approval. The consultation is open until 6 June 2025.

The consultation launched by the EBA on 6 March 2025 is aimed at supervisory authorities and AML/CFT obliged entities. It is of particular interest to collective investment management companies, financial investment advisors, crowdfunding service providers (soon to be fully obliged) and crypto-asset services providers.

Key points of the four draft RTS submitted for consultation

Methodology for assessing obliged entities’ inherent and residual risk profile, and the frequency with which this profile must be reviewed 

Directive (EU) 2024/1640 of 31 May 2024 (AMLD VI) requires AML/CFT supervisors to apply a risk-based approach to AML/CFT supervision, and to adjust the frequency and intensity of their supervision according to the money laundering (ML) and terrorist financing (TF) risk profile of each entity. To this end, AMLA must develop an RTS that defines a harmonised methodology that supervisory authorities will be required to use to assess the level of the ML/TF risks of the entities under their supervision. Within this framework, AMLA must define, in a draft RTS, the criteria and methodology that the supervisory authorities will apply to assess and classify the inherent and residual risk profile of each obliged entity, as well as the frequency with which this risk profile must be re-assessed; this risk profile ultimately affects the frequency and intensity of the supervisory actions carried out.

In this regard, the draft RTS submitted for consultation by the EBA defines:

• a single set of indicators relating to inherent risk and the quality of the AML/CFT control mechanism, which the supervisory authorities will be required to collect from the obliged entities they supervise with a view to defining indicators specific to each obliged entity relating to inherent and residual risks (the latter resulting from the contribution made by the AML/CFT control mechanism to reducing inherent risk);
• the frequency with which this data must be collected and analysed to determine and update the ML/TF risk profile of each obliged entity.

The proposed risk indicators relate to:

• for inherent risk: customers, the products and services provided, the geographical areas in which the business is conducted and the distribution channels used;
• for the quality of the AML/CFT control mechanism: the governance of this mechanism, risk assessment, AML/CFT policies and procedures; AML/CFT supervision at group level.

These RTS will lead to significant changes in the methodology used by the competent authorities to assess ML/TF risks, and the nature and volume of the information to be communicated by the obliged authorities for the purposes of this assessment.

Risk assessment for the purposes of selecting the entities subject to direct AMLA supervision

AMLA will directly supervise a certain number of obliged entities operating in at least six Member States and presenting a high residual risk profile. To this end, Regulation (EU) 2024/1620 of 31 May 2024 establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) provides that AMLA must define, in a draft RTS, the criteria and methodology for selecting the entities eligible for direct supervision, by ascertaining, in particular: 

• the number of Member States in which an obliged entity operates under the freedom of establishment or freedom to provide services, by defining materiality thresholds for activities carried out under the freedom to provide services above which an entity must be considered as operating in a Member State other than the one in which it is established; and
• the level of the ML/TF risk of each eligible entity, by defining the methodology for categorising its ML/TF risk profile as low, medium, substantial or high.

Concerned market participants, especially collective investment management companies, should therefore pay particular attention to this draft, and especially as regards the criteria and materiality thresholds for activities carried out under the freedom to provide services.

The selection of entities subject to direct AMLA supervision will be reviewed every three years. The first selection process based on the harmonised methodology will be carried out by AMLA in 2027. Selected obliged entities will be subject to AMLA’s direct supervision by from 2028.

Customer due diligence measures

Regulation (EU) 2024/1624 of 31 May 2024 (AMLR) requires AMLA to harmonise, by means of an RTS, the customer due diligence (CDD) obligations by specifying the information that obliged entities will have to collect to comply with their CDD obligations (whether standard, simplified or enhanced ). AMLA will also have to define which reliable and independent sources of information obliged entities can use to verify the identity of natural persons or legal entities.

In this context, the draft RTS submitted for consultation by the EBA defines, in particular, in a harmonised manner:

• the information that obliged entities will be required to collect in order to identify and verify the identity of customers and beneficial owners, and to understand the ownership and control structure of the customer, as well as the sources of information that may be used for these purposes; 
• the measures to be taken to identify and understand the purpose and nature of the business relationship;
• specific measures relating to the identification of politically exposed persons;
• the sector-specific measures that can be implemented for simplified CDD (particularly for asset managers), as well as the additional requirements applicable in the case of enhanced CDD; and
• the measures to be implemented in order to comply with the obligations to verify whether the customer or beneficial owner is subject to targeted financial sanctions.

These RTS will have a material impact on the way  obliged entities implement their customer due diligence obligations, particularly with regard to the nature and extent of the information they collect and the sources of information they use for this purpose. In particular, it sets out the major challenges for collective investment management companies.

Pecuniary sanctions, administrative measures and periodic penalty payments

AMLA must draw up a draft RTS on pecuniary sanctions, administrative measures and periodic penalty payments for the purposes of defining:

• the indicators for classifying the seriousness of infringements; 
• the criteria for setting the level of pecuniary sanctions and applying administrative measures; and
• the methodology for imposing periodic penalty payments when obliged entities fail to comply with certain administrative measures within the applicable deadlines.

With the aim of achieving the highest possible level of harmonisation in order to ensure that the one and the same infringement of AML/CFT obligations is treated in the same way by all supervisory authorities in all member States, that the resulting measure is proportionate, effective and dissuasive, and that a pecuniary sanction is applied in the event of serious, repeated or systematic infringements, the draft RTS submitted for consultation by the EBA:

• establishes a list of common indicators to be taken into account by supervisory authorities when assessing the seriousness of infringements and categorising them according to a four-level scale, whereby infringements at levels 3 and 4 are deemed to be serious, repeated or systematic, and entail the adoption of pecuniary sanctions;
• defines the criteria to be taken into account by the competent authorities when setting the level of pecuniary sanctions and applying administrative measures (such as the restriction or limitation of activities; divestment of activities; withdrawal or suspension of authorisation; modification of the governance structure) and the circumstances which may lead to an increased or reduced pecuniary sanctions;
• determines the methodology for the imposition of periodic penalty payments, in particular as regards the decision to impose such a penalty, as well as the calculation and payment thereof.

Consultation period and next steps

• Consultation period: until 06/06/2025
• Public hearings: 10/04/2025
• EBA response to the European Commission: 31/10/2025