The European Banking Authority (EBA) has issued its Opinion on ML/TF risks in the EU. This Opinion not only identifies relevant ML/TF risks but also provides recommendations to authorities to address these risks.
Some risks that the EBA’s Opinion identifies, such as those related to virtual currencies and novel financial services, have also been identified by the EBA earlier. However, these risks remain important to date. Meanwhile, the Opinion has identified, for the first time, risks such as variations in how competent authorities treat the role of financial institutions in tax-related crimes.
The Opinion also includes ML/TF risks related to the COVID-19 pandemic. Notably, the pandemic has affected both AML/CFT compliance and supervision by regulatory bodies. The EBA has stressed that authorities must monitor and address COVID-19-related risks promptly.
Source: European Banking Authority