Updated: October 2020
The adoption of an EU Regulation could be a way to help clarify the grey zones in the existing rulebook and
would allow banks that operate cross-border to develop common EU-wide AML/CFT policies and processes,
create synergies and facilitate effective cross-border supervision.
Supervisory fragmentation could be addressed by the creation of an independent EU body/authority with
a clear AML/CFT mandate, or by giving an existing EU authority a deeper AML/CFT mandate, always taking
into account also the national specificities. ESBG is supportive of harmonised guidance, better coordinated
implementation and unified supervisory practices across the EU, leveraging the experience and expertise of
national supervisors as well as banking institutions in this field. However, EU policymakers should be very
cautious of overlaps with national authorities. It is therefore of the utmost importance that centralisation does
not come at the cost of efficiency. ESBG suggests that synergies be tapped into to avoid placing additional
reporting burdens and cost efficiencies on the industry, including potential duplicate procedures and overlaps
between national and EU entities whilst ensuring that the monitoring regime is strengthened.
ESBG believes that the EU supervisor should have indirect powers over some obliged entities, with the
possibility of directly intervening in justified cases. ESBG considers that the EBA is the best option due to the