On 16 December 2021, the European Banking Authority (EBA) published updated guidelines on risk-based supervision of credit and financial institutions’ compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) obligations. The guidelines set out the steps supervisors should take to ensure adequate AML/CFT oversight of their sector and support the adoption, by credit and financial institutions, of effective ML/TF risk management policies and procedures.  The EBA decided to update the guidelines in light of the findings from its ongoing work to review Member State competent authorities’ approaches to AML/CFT supervision. These findings suggest that some Member State competent authorities found the implementation of the risk-based approach to AML/CFT supervision challenging.

The Fourth Money Laundering Directive (4AMLD) puts the risk-based approach at the centre of the EU’s AML/CFT regime. Article 48(10) of the 4AMLD mandates the EBA to issue guidelines addressed to Member State competent authorities on the characteristics of a risk-based approach to supervision and the steps to be taken when conducting supervision on a risk-based basis.

The initial guidelines on risk-based supervision were published by the European Supervisory Authorities in 2016.

The EBA consulted on the updated guidelines between March and June 2021.

The updated guidelines will apply three months after publication in all EU official languages. The 2016 guidelines are repealed when the updated guidelines apply.