EU Guidelines Mandate Senior AML Leadership for Financial Institutions

In a significant step towards unifying anti-money laundering (AML) regulations across Europe, the European Banking Authority (EBA) has issued its first EU-wide AML guidelines. These measures, aimed at enhancing governance and risk management in financial institutions, are enforceable starting December 30, 2025, and demand strict adherence by all entities under the EBA’s supervision.

The guidelines, unveiled in two sets, outline both general and specific requirements.

The General Guidelines, applicable to all financial institutions, focus on establishing robust governance and risk management systems to mitigate breaches. Meanwhile, the Specific Guidelines, tailored for payment service providers (PSPs) and crypto-asset service providers (CASPs), address sector-specific risks in these rapidly evolving industries.

One key directive within these guidelines is the mandatory appointment of a senior staff member responsible for AML functions. “Financial institutions should appoint a senior staff member in charge of performing the functions and tasks set out,” the guidelines state. The appointed individual must possess the requisite knowledge and understanding of restrictive measures to effectively carry out their responsibilities. The management body of each institution is tasked with ensuring that this person is well-equipped to handle the role.

Specific responsibilities for this AML leader include overseeing Suspicious Activity Reports (SARs), ensuring that they are effectively generated and managed within the organization.

The EBA emphasized the role of “competent authorities” in EU member states, requiring them to report their compliance with the guidelines within two months of the document’s publication in EU languages.

These guidelines represent a concerted effort by the EU to streamline AML practices and fortify defenses against financial crime across the bloc. Institutions now have a clear framework to enhance their governance structures, with compliance deadlines set firmly in place.

By fLEXI tEAM