Latest proposed changes to EU AML rules

追加: 2026-05-13

[00:00:05]Hello everybody and welcome to this week's episode of the pan tier.ai podcast. With me as always is Klaus Nørgren joining us from Sweden. Klaus, welcome. Thank you. And the topic of today's discussion revolves around AMLA, the anti-money the anti-money laundering authority. Sorry, I can't pronounce things properly this morning. Um which has recently been established. I guess Klaus currently supervising 40 entities within the European Union.

[00:00:39]We'll talk we'll start a little bit with Klaus analyzing the mandate of AMLA and then we'll get into two RTS documents, regulatory technical standards documents which have been out for consultation and I guess today, May 8th, is the last day.

[00:01:00]Um but Klaus, let's get started I guess with an overview of AMLA and we can go from there. Yes, thank you Ari. As you said, this is the last day for the public consultation and it also marks the kind of visible start up of AMLA's operation. Um as we know it will be entering into force in 2027.

[00:01:24]Most of what they do, but there is a huge groundwork going on to prepare their role in terms of now what we will focus on today, the regulations, the RTS. They are mandated in AML CFT supervision to as you say have a direct financial supervision of AML of the 40 greatest institutions, but they do also have an indirect relation and role in supervision.

[00:02:04]Meaning to to kind of lead practices in AML supervision for national supervisors.

[00:02:13]So in that they will be overseeing and coordinating how other supervisory authorities do in in this sphere. And my experience in this field in Europe looking at this from an internal supervisory perspective, this is very much needed.

[00:02:34]There have been so big differences in ambition, policy and resources in Europe. So I think to get AML and counterterrorism to really work, this is longed for for a long time.

[00:02:51]What is interesting also is that the FIUs they have also a role in that.

[00:03:00]AMLA, they are coordinating and supporting all the EU FIUs in in this field. And as we said also, they are regulator issuing technical standards and guidelines to be addressed by entities, supervisors and FIUs.

[00:03:21]And Klaus, just to take this point of the 40 supervised entities, what's the plan for the expansion of the scope and the supervision in the next in the short term?

[00:03:37]Well, they have been recruiting staff in Frankfurt and of course they will have function like I would say the SSM at the ECB.

[00:03:50]Of course being a separate institution.

[00:03:53]So, I would see that there will be a lot of work in implementing the regulations, the technical standards, and and the RTS. They will also be working with reporting. That's a huge task that involves authorities to large extent in the member states, but will also of course be obvious to banks and other entities. So, and and besides that, I think they will develop like the ECB handbooks for supervision, etc. And now, just to emphasize, this is not only about AML supervision of banks, but also for the non-financial sector. And I think this is an interesting differentiation when we think of the SSM, which of course was set up in the aftermath of the 2008 crisis to to regulate the largest banks. Whereas, obviously when it comes to again from a from a sort of supervisory and prudential standpoint. In this case though, on the conduct side I guess, with AML, clearly you can see that the scope is a lot bigger, right? Because it goes beyond just the banks, which you know, really shows what a widespread issue, I won't say problem, but issue it is to properly supervise the AML regime moving beyond just the banks.

[00:05:18]Indeed. And I I think as you mentioned, how how can we see the footprints? Well, they are now rolling out communication about their overarching principles, and I was reading with interest the documentation from the hearing in March that that they had had, where of course they are stating the the general principles in AML about harmonization, risk-based approach, proportionality, uh etc. But, they are making some emphasis on some points that I think are interesting. First of all, they uh point that they want to ensure a high level of harmonization.

[00:06:07]And I think that that is really what they were put there to do.

[00:06:11]Uh and uh it seems then that they take this seriously.

[00:06:15]Then they uh as a overarching principle mention that they want to focus on simplification.

[00:06:23]That's easier said than done. So, I think the jury will be out there and I think we should follow how that can be followed through in real life application. And they want to also they flag to have continuity in the regulatory framework. Which is of course a good thing, but um uh we that should be also contrasted with the ambitions to simplify.

[00:06:50]And Klaus, as we move a little bit more into the technical part of it, I think it would be interesting just for everybody to know where the RTS stands within the sort of hierarchy of um of regulations, right? So, there's a regulation, there's the RTS, and then there's the guidance in sort of the um nomenclature, if you will, of of of the different types of documents.

[00:07:14]Yes, I mean mean uh what we now have in this area is a followed through um uh harmonized regulation in Europe, moving from European directives to uh regulations, EU regulations, with the MLR uh regulation. Uh and based on that, there are also uh um further technical standards and regulatory technical standards issued from the AMLA which will be big undertaking and big part of their work.

[00:07:52]And they are as it should also be mentioned that there are a couple of key changes that are worth mentioning. Now what is out for consultation is not really invented by the AMLA because already more than 1 year ago EBA had gotten the mandate from the European Commission to develop draft technical standards given that the negotiations for the EU regulations in AML were ready already at that time but waited for implementation. So now they rolled this out in in in in in more detail. So what AMLA has done has taken up what EBA already has been communicating.

[00:08:48]They adopt the EBA draft as their own standards. They consult and they add some some additional points of view. So the degree of sensation is not that bad big because EBA has already done a big part of the job and that has been known but anyway this is now how it will look like in more detail. Great. So why don't we start with the highlights of the of the first piece which has to do with with CDD requirements? Well I would rather say that instead of diving into that degree of detail I think that we should also look at some of the general things that uh, they are picking up in this consultation and that has to do with how you look, uh, when it comes to CDD, as you mentioned, on business relationships, occasional transactions, and linked transactions. So, uh, what they are doing here, that they are linking this to to the requirements on um, obliged entities to uh, what is seen in terms of the regulation as uh, definition in this area, that there is a business relationship and um, uh, they are setting out in more detail what is to be reviewed as occasional transactions and linked transactions.

[00:10:20]And this, of of course, then um, goes together with how to look at what type of transactions where you should have a lower threshold. And there are some uh, examples of that in the consultations.

[00:10:38]Um, uh, for instance, for crypto asset services providers, uh, there is a lower uh, threshold for reporting uh, of transactions of at least 1,000 euro. The normal level for cash is is normally 3,000 euro. So, for crypto asset services providers, this is at at an set at a lower level. Also interesting to notice is that uh, talking about non-financial sectors, um, providers of gambling services shall also uh, do the uh, CDD. And also for them, the reporting threshold is set lower than 3,000. Um, in this case, it's it's it's set at 2,000. I think uh, the consultation and the detail here, I think are so rich and and more kind of in the detail and worth reading. So, I don't think perhaps we should go into that degree of detail here and now. But, recommend our viewers to take a look at this, check it out, and follow what will happen from now on.

[00:11:52]So, what we'll do is we've attached a link to the to the document that Klaus is referring to in the notes below. So, anybody who wants to go in and see the presentation and and get into more detail can can do so. Klaus, before we close because obviously Palantir also has horizon scanning capabilities.

[00:12:16]Is there anything that you want to draw attention to in terms of what you what may be emerging just a sort of preview of some of the things that our viewers can expect in terms of further guidances or or regulations coming out in this area? In the AMLA, well, I think we we will have to see how all the other RTS will look like. So, there will be also I think um interesting to follow the identification issues of identification of um customers where there are requirements on how to well, technically make sure that you know who you are you are dealing with. That's just an example, but watch out for what what is going to come.

[00:13:12]So, it's all KYC plus plus, right?

[00:13:15]Whatever started [laughter] as the obligation of the bank to know their customers is now going broader and deeper, right? So, it's not just the banks, but all sorts of other entities.

[00:13:25]And then, as you said, the thresholds get lower the need for more detail gets greater so it's the it's a continuation if you will of the same story.

[00:13:34]>> [snorts] >> Klaus I think let's leave it at that and again as I said you can find the link to the relevant documents below and please if you want to continue to get updates subscribe to the channel and if you like this content give us a thumbs up.