AMLA Begins Testing Risk Models Ahead of EU-Wide AML Supervision

Key Takeaways

• AMLA Is Moving Early to Shape EU-Wide AML Supervision: The data collection exercise marks a concrete preparatory step toward AMLA’s direct supervisory role, well ahead of its 2028 start date.
• Risk Models Will Drive Who Falls Under Direct Supervision: The exercise will directly inform the 2027 selection of up to 40 financial institutions for AMLA oversight.
• Consistency Across the EU Is a Core Objective: Beyond selection, the models are intended to harmonize how money laundering risk is assessed by national supervisors.
• Private Sector Data Is Critical to the Process: AMLA has stressed that high-quality, comparable data from participating institutions is essential to building credible and reliable models.
• Institutions Are Getting an Early Systems Test: Participating firms will be able to test and prepare their data and reporting systems ahead of future AMLA-led data collections.

Deep Dive

Europe’s new anti-money laundering authority is taking another step toward its future role as a frontline supervisor, as Anti-Money Laundering Authority (AMLA) prepares to launch a data collection exercise aimed at stress-testing the risk models it will rely on to oversee the financial sector.

Set to begin in March, the exercise is designed to do two things at once. It will help AMLA fine-tune the models that will underpin its assessment of money laundering risk across the EU, and it will feed directly into the authority’s 2027 decision on which financial institutions will fall under its direct supervision when that regime begins in 2028.

At stake is the selection of up to 40 institutions that will be supervised directly by AMLA, marking a significant shift away from purely national oversight toward a more centralized European framework. The same models are also intended to support greater consistency among national supervisors, an area where EU policymakers have long acknowledged uneven approaches to assessing AML risk.

The data collection is being carried out in close coordination with national supervisory authorities and the private sector, and AMLA has framed it as a preparatory exercise rather than a supervisory intervention. Two sets of financial institutions will take part. One group includes firms that could ultimately qualify for AMLA’s direct supervision, while the other consists of a representative sample expected to remain under national oversight. National supervisors have already provided AMLA with lists of both groups, and participating institutions have been notified.

AMLA has emphasized that meaningful participation from the private sector will be critical. High-quality data, the authority says, is essential to building a credible selection model and to developing a common, EU-wide methodology for assessing money laundering risk. For participating firms, the exercise also serves a practical purpose, allowing them to test and adjust their systems ahead of future data collections linked to AMLA’s supervisory mandate.

“By testing and validating our models, we are taking the next steps towards effective and harmonized risk assessments across the EU,” said Bruna Szego, chair of AMLA. She added that the authority is counting on private sector engagement to ensure the models it ultimately deploys are robust and reliable.

Once testing and calibration are complete, AMLA will draw up the final list of entities eligible for direct supervision. National supervisors will then collect further data from those institutions in early 2027, information that will inform AMLA’s final decision on which firms it will supervise directly.

While the authority’s formal supervisory powers are still two years away, the exercise underscores how quickly AMLA is moving to put the foundations of EU-level AML supervision in place and how early financial institutions are being drawn into that transition.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.