European Union
1. EU Launches New Anti-Money Laundering Authority
In July 2025, the European Union formally launched its new Anti-Money Laundering Authority (AMLA), aimed at reinforcing cross-border supervision and enforcement across member states. The authority will play a central role in harmonizing AML/CFT standards, driving consistency in customer due diligence, and overseeing high-risk cross-border entities across the EU.
Takeaways:
– Prepare for closer scrutiny on onboarding practices, especially for clients operating in multiple EU jurisdictions.
– Anticipate more consistent regulatory expectations across EU member states, and adjust AML/KYC controls accordingly.
– Expect new guidance and enforcement actions as AMLA becomes fully operational.
Source: https://www.bankingsupervision.europa.eu/press/pr/date/2025/html/ssm.pr250703~fc9c23ef09.en.html
2. European Banking Authority (EBA) Flags High ML/TF Risks in FinTech; RegTech Misuse Highlighted
The EBA released its 2025 Opinion on ML/TF risks in the financial sector, highlighting heightened threats driven by digital transformation. Key findings:
– FinTech Sector: 70% of national authorities report high or increasing ML/TF risks. Concerns are centered on weak governance frameworks and insufficient AML/CFT controls – often due to the prioritization of market growth over compliance consistency.
– RegTech Adoption: The EBA warned about systemic failures in RegTech implementation. Over 50% of serious compliance breaches in its EuReCA database involved the misuse or poor deployment of RegTech tools, often due to inadequate oversight and insufficient expertise among institutions.
Takeaways:
– Firms using RegTech solutions must critically evaluate the effectiveness and governance around their implementation.
– FinTechs should reassess compliance frameworks, especially in customer onboarding and transaction monitoring processes.
3. Luxury Sector Under Scrutiny: Louis Vuitton Investigated for Euro 3.5M Cash Transactions
French prosecutors have opened an investigation into Louis Vuitton, following reports of over Euro 3.5 million in suspicious cash purchases, potentially tied to AML violations. Early findings suggest the company may have failed to report large cash transactions that could be linked to money laundering activities, raising concerns about the luxury sector’s KYC enforcement obligations.
Takeaways:
– Reevaluate cash transaction thresholds and monitoring policies, especially in non-financial sectors prone to ML risk such as luxury goods and real estate.
– Ensure staff are trained to identify red flags for high-value purchases and enhanced due diligence is triggered where necessary.