What does the EBA do?
The EBA’s main task is to contribute to the creation of the European Single Rulebook for banking, which is a set of “harmonised prudential rules” for all financial institutions in the EU. The Single Rulebook is designed to create a level regulatory playing field across the banking sector, providing protection to companies and individuals operating within it, and making it easier to comply with EBA rules.
As part of this goal, the EBA works to promote the convergence of regulatory practices by member state authorities, ensuring they apply European financial crime legislation, including anti-money laundering (AML) and counter financing of terrorism (CFT) measures, equally. The EBA’s stated mandate allows it to:
- Investigate incorrect or insufficient application of EU law by national authorities.
- Take decisions directed at individual competent authorities or financial institutions in emergency situations.
- Mediate between competent authorities to resolve cross border disagreements.
- Act as an independent advisor to the European Parliament, Council, or Commission.
- Take a leading role in promoting transparency, simplicity, and fairness in the consumer financial product market or the internal services market.
How does the EBA carry out its AML and CFT responsibilities?
As part of its mandate to create legislative harmony for EU financial institutions, the EBA seeks to ensure that AML and CFT legislation is being applied both consistently and effectively in member states. To this end, the EBA works with credit and financial institutions, competent national authorities, and pan-EU agencies like the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), to:
- Facilitate cooperation between national authorities responsible for AML/CFT compliance.
- Promote a common understanding of the risk-based approach to AML/CFT, and how to apply it.
- Deliver its mandate to EU member states under Directive (EU) 2015/849 and Regulation (EU) 2015/847.
- Engage in dialogue with stakeholders and entities responsible for setting international standards and ensuring financial institutions comply with EBA regulations.
EBA Regulatory Actions
To help member states with their AML and CFT efforts, and reinforce legislative harmonisation, the EBA regularly issues a range of regulatory documents to competent authorities. Those documents include Guidelines, Opinions, Recommendations, and a range of ad-hoc and regular reports. The EBA also produces Binding Technical Standards (BTS) which are legal acts endorsed and adopted by the European Commission, and directly legally-binding to each EU member state.