Navigating the EU AML/CFT Landscape

In 2021, the European Commission introduced a comprehensive AML/CFT package to close legislative gaps and strengthen harmonisation across the EU. This includes the new Anti-Money Laundering Regulation (AMLR), effective from 10 July 2027, and the creation of the Anti-Money Laundering Authority (AMLA). These measures aim to enhance the fight against financial crime, ensuring the stability and integrity of EU financial markets while improving operational efficiency across the financial sector.

This benchmark report assesses the financial sector’s readiness for the new EU AML/CFT Package, drawing on survey responses from 121 representatives of 103 financial institutions across 20 European countries.

The findings offer valuable insights into compliance and preparedness, emphasising the critical role of knowledge sharing within the industry. While the package applies to multiple sectors, this report focuses exclusively on the perspectives of financial institutions as we collectively strive to strengthen the integrity of the financial system and address implementation challenges. 

Understanding the EU AML/CFT Package and Its Challenges

Since 1989, global and EU efforts have aimed to harmonise Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regulations, culminating in the European Commission’s ambitious 2021 legislative packagepublished in June 2023.

This package introduces key measures including the new Anti-Money Laundering Authority (AMLA), which will coordinate national supervisors and Financial Intelligence Units while directly overseeing certain financial entities. It also establishes the directly applicable Anti-Money Laundering Regulation (AMLR) from July 2027, ensuring consistent rules across Member States, alongside the sixth Anti-Money Laundering Directive (AMLD6), which requires national adoption of critical AML provisions.

With nearly 100 deadlines over the next eight years, this package brings significant changes that will affect all aspects of AML/CFT processes in financial institutions, making it essential for stakeholders to understand and prepare for its wide-ranging impact. Explore the full report for detailed insights and guidance on navigating these upcoming regulatory shifts.

Key Findings

From the perspectives of 121 respondents in 20 countries in Europe, we have identified four key messages that reflect the current readiness and interpretation of the EU AML/CFT package:

1. The EU AML/CFT Package is enhancing resilience in the fight against financial crime, however, there are concerns about the implementation and the new supervisory landscape.
2. Financial institutions are in the early stages of their preparations for implementing the EU AML/CFT Package, predominantly driven by the second line of defence.
3. Financial institutions are confident that they have sufficient resources and a good understanding to effectively implement the EU AML/CFT Package, yet some express concerns about their involvement in staying updated on regulatory changes.
4. Financial institutions are primarily concerned about client data gathering and actualization, and innovation. Banks identify more significant gaps than other respondents.

Key Statistics