European Supervisory Authorities publish opinion on AML/CFT risks to EU financial sector

The Joint Committee of the ESAs has published a joint opinion on money laundering and terrorist financing risks affecting the EU financial sector. The opinion has been prepared under the Fourth Anti-Money Laundering Directive (2015/849 - AMLD 4) and is addressed to the EU Commission in order to contribute to its risk assessment work.

The opinion highlights that problems exist in key areas, including:

• firms' understanding of money laundering and terrorist financing risk to which they are exposed;
   
• due diligence;
   
• lack of timely access to intelligence; and
   
• differences in the way competent authorities discharge their functions.

The ESAs take the view that these problems risk diminishing the robustness of the EU's regimes intended to combat money laundering and the financing of terrorism.