The ML/TF risks
identified by the EBA include those that are applicable to the entire
financial system, for instance the use of innovative financial services,
while others affect specific sectors, such as de-risking. The list also
includes ML/TF risks that emerge from wider developments such as the
COVID-19 pandemic that has an impact on both firms’ AML/CFT compliance
and competent authorities’ supervision. The Opinion, therefore, sets out
recommendations to competent authorities aimed at closing these gaps.
Some of the risks identified in this Opinion, such as those
associated with virtual currencies and innovative financial services,
had already been identified in the previous two Opinions on ML/TF risks
and continue to be very relevant today. Others are included in the
Opinion for the first time, such as differences in the treatment by
competent authorities of financial institutions’ involvement in
facilitating or handling tax-related crimes (‘cum-ex/cum-cum’). The EBA
also observes a continuing trend of de-risking, which has implications
from a ML/TF, consumer protection and financial stability point of view.
The COVID19 pandemic illustrates how new ML/TF risks can emerge
unexpectedly and that can impact firms’ ability to ensure adequate
AML/CFT compliance, and competent authorities’ ability to ensure the
ongoing supervision of firms in the current context of restrictions on
movement. Risks associated with COVID19, thus, require immediate
attention and monitoring by competent authorities.
As a complement to this Opinion, the EBA has developed an interactive
tool, which gives European citizens, competent authorities and credit
and financial institutions access in a user friendly manner to all ML/TF
risks covered in the Opinion. The interactive tool is available here.
Legal basis
The Opinion has been issued in accordance with Article 6(5) of (EU)
2015/849 (The Fourth EU Anti-Money Laundering Directive), which requires
the EBA to issue an Opinion on the risks of ML and TF affecting the
EU's financial sector every two years. The Opinion and its associated
report will inform the European Commission’s Supranational Risk
Assessment (SNRA) and risk assessments carried out by competent
authorities.