Anti-Money Laundering
FATF, INTERPOL & UNODC urge critical action on Money Laundering & Terrorist Financing (ML/TF)
In the context of the 34th session of the UN Commission on Crime Prevention and Criminal Justice (CCPCJ), held on 19 May 2025 in Vienna, the FATF, INTERPOL, and UNODC issued a joint call for governments to intensify efforts to combat the significant illicit proceeds stemming from drug and human trafficking, organised illegal migration networks, fraud, and Illicit financial schemes.
Key recommendations include:
- Asset recovery: strengthen cross-border cooperation and legal frameworks to identify, seize, and repatriate assets associated with criminal and terrorist organisations, thereby undermining the financial systems that enable their operations.
- Economic-crime approach: embed financial investigations into crimeprevention strategies to protect societies, ensure financial stability and foster economic growth.
- Operational tools:
- INTERPOL's silver notice: roll-out to 51 pilot countries for rapid assetrelated information sharing.
- FATF standards: ongoing tightening of global AML/CFT standards; nearly 80% of jurisdictions still have only low-to-moderate assetrecovery effectiveness.
- Public-private partnerships: encourage collaboration with financial institutions, FIUs (Egmont Group) and civil society to deploy innovative, scalable solutions.
- Looking ahead: Practical guidance for practitioners on international cooperation will be published later this year, ahead of the 15th UN Crime Congress to be held at Abu Dhabi on 25–30 April 2026.
This collective call to action highlights the urgent need for member states to accelerate capacity-building, adopt risk-based approaches, and leverage new technologies—ensuring that no jurisdiction remains a safe haven for illicit finance.
Asset Management
IOSCO publishes final report on revised liquidity risk management recommendations for investment funds
On 26 May 2025, the International Organisation of Securities Commissions (IOSCO) released its Final Report on revised recommendations for liquidity risk management for Collective Investment Schemes (CIS), accompanied by detailed implementation guidance.
This milestone follows extensive work by IOSCO and builds on the Financial Stability Board's (FSB) December 2023 revised recommendations addressing structural vulnerabilities from liquidity mismatches in open-ended funds. The 17 updated recommendations, structured across six key areas - CIS design, liquidity tools and measures, day-to-day management, stress testing, governance, and disclosures - aim to strengthen the resilience of investment funds and better protect investors.
The accompanying implementation guidance provides practical direction and good practices to support regulators and market participants in effectively inserting these standards into their supervisory and operational frameworks. IOSCO Chair, Jean-Paul Servais urged regulators to carefully consider the revised standards and ensure appropriate oversight of liquidity management practices.
The publications are part of a broader global initiative, in collaboration with the FSB, to enhance the robustness of liquidity frameworks for investment funds worldwide.
Banking & Finance (1)
EBA publishes final technical package for reporting framework v4.1
On 28 May 2025, EBA released the final technical package for version 4.1 of its reporting framework, introducing key updates to support:
- The identification and assessment of significant crypto-asset service providers; and
- The development of the EBA's Pillar 3 data hub, which aims to centralise prudential disclosures and enhance data accessibility for institutions and stakeholders.
The finalised package includes specifications such as validation rules, the Data Point Model (DPM), and XBRL taxonomies, and covers:
- Pillar 3 templates under the Implementing Technical Standards (ITS) for the Pillar 3 data hub;
- Draft MiCAR reporting guidelines for supervisory use by competent authorities;
- Enhanced validation rules for the ESG ad-hoc data collection module.
This version continues the EBA's transition to DPM 2.0 and a new glossary format, as first outlined in June 2024. The framework will apply from the second half of 2025.
EBA releases onboarding plan for Pillar 3 Data Hub (P3DH)
EBA published on 22 May 2025 its onboarding plan outlining how institutions, particularly large and other CRR-regulated entities, will access and submit data to the new Pillar 3 Data Hub (P3DH), a centralised platform for public prudential disclosures under the Capital Requirements Regulation (CRR3). This marks a key milestone in the EBA's efforts to enhance transparency, comparability, and market discipline across the EU financial system.
Key points from the onboarding plan include:
- A step-by-step process for onboarding institutions to the EUCLID regulatory reporting platform, which will serve as the entry point for Pillar 3 disclosures;
- A phased-in implementation timeline allowing institutions to continue fulfilling their 2025 disclosure obligations as usual, with P3DH submissions beginning at a later stage;
- Transitional provisions to give institutions time to align internal systems and processes;
- A dedicated set of FAQs, which will be regularly updated to support institutions during onboarding and initial reporting.
The P3DH platform will provide a single public access point to explore, compare, and visualise Pillar 3 disclosures across institutions and time period, significantly strengthening the transparency and resilience of the EU banking sector. Public access to the platform is expected to begin in December 2025. The EBA encourages institutions to begin familiarising themselves with the process and prepare for integration.
This initiative stems from the CRR3/CRD6 Banking Package, which mandates the creation of the P3DH under Articles 434 and 434a. Further detail is available in the EBA's roadmap on strengthening the prudential framework issued in December 2023.
Banking & Finance (2)
EBA opens consultation on enhanced ESG, equity and shadow banking disclosures
EBA initiated a public consultation on proposed amendments to the European Commission's Implementing Regulation on Pillar 3 disclosures under the CRR3. The proposals aim to enhance transparency, proportionality, and alignment with broader EU sustainability reporting initiatives. Key highlights of the proposed amendments include:
- Extended ESG risk disclosures: the scope of ESG-related disclosure requirements will be expanded to all institutions, with a proportionate framework that simplifies obligations for Small and Non-Complex Institutions (SNCIs) and non-listed banks. No new requirements are imposed on large listed banks, but existing disclosures will be clarified and streamlined.
- New templates for equity exposures and shadow banking, with the
introduction of disclosure templates covering:
- Equity exposures (CRR3 Article 438(e))
- Aggregate exposure to shadow banking entities (CRR3 Article 449b)
- Updated economic classification codes: the framework integrates the latest NACE codes for the statistical classification of economic activities in the EU.
- Transitional provisions and supervisory flexibility: to ease implementation, the EBA proposes transitional measures and supervisory tolerance. This includes a potential "no-action" letter, advising competent authorities not to prioritise enforcement of certain ESG templates during the initial transition phase.
- Improved usability tools: An updated mapping tool will support institutions by linking Pillar 3 templates with corresponding supervisory reporting requirements.
These updates support the EBA's Pillar 3 Data Hub initiative and align with the EU Commission's Omnibus Proposal to reduce the reporting burden under the CSRD, CSDDD, and the Taxonomy Regulation.
The consultation is open until 22 August 2025. A virtual public hearing will be held on 26 June 2025 (11:00–12:30 CEST), with a registration deadline of 24 June 2025.
Institutions are strongly encouraged to:
- Review the proposed amendments
- Assess the potential impact on their disclosure processes, and
- Prepare early for compliance with the updated requirements.
Banking & Finance (3)
EBA reports EU deposit guarantee scheme funds reach €79 billion milestone
EBA announced on 21 May 2025 that all national Deposit Guarantee Schemes (DGSs) across the EU have now reached the minimum target level of available financial means, marking a major milestone in depositor protection across the EU.
According to data published for year-end 2024, the aggregate amount of financial means held by EU DGSs rose by 11.1% to €79 billion, meeting or exceeding the target level of 0.8% of covered deposits in all Member States. This follows a 10-year build-up phase, during which banks contributed to national DGSs to ensure sufficient resources are in place to protect depositors in the event of a bank failure.
Key figures from the report:
- €79 billion in available financial means across the EU DGSs (up from €71 billion in 2023)
- €8.6 trillion in covered deposits (up 3.2% from 2023)
- €8.8 trillion in total covered deposits across the European Economic Area (EEA), including Iceland, Norway, and Liechtenstein
- €81 billion in total financial means available in EEA DGS funds
What does this mean for depositors?
Deposits up to €100,000 per depositor per bank are protected by law under the Deposit Guarantee Schemes Directive (DGSD). In the event of a bank failure, national DGSs are now fully equipped to reimburse eligible depositors within 7 working days, offering confidence and stability to EU banking customers. In addition to the available financial means, DGSs also have mechanisms to raise additional funds - either through extraordinary contributions or short-term financing - should the need arise during a crisis.
Transparency and accountability
The EBA publishes this data annually to enhance transparency and reinforce public trust. The data is available for each EU Member State and EEA country and includes details on:
- Covered deposit volumes
- Financial means held by each DGS
- Compliance with target funding levels
EBA released on 20 May 2025 the first part of its 2024 Annual Report, presenting a summary of the authority's key achievements and activities over the past year. The report underscores another year of strong performance, with the EBA successfully delivering over 93% of its Work Programme mandates — marking 2024 as a milestone year for EU financial regulation.
Regulatory progress and prudential standards
A major focus in 2024 was the implementation of the Basel III reforms, reinforcing the resilience of EU banks to future crises. In strengthening the EU Single Rulebook, the EBA issued new and updated guidelines and technical standards across core areas such as:
- Credit risk
- Market risk
- Operational risk
The EBA also played an instrumental role in supporting the European Green Deal. It advanced the integration of sustainability considerations into the prudential framework through:
- ESG risk disclosure guidance
- Reports on greenwashing risk
- Scenario analysis methodologies
Risk monitoring and transparency
Against a backdrop of high interest rates, low growth, and geopolitical tensions, the EBA closely monitored risks to financial stability. Two editions of the Risk Assessment Report were published, in spring and autumn, with the latter accompanied by the EU-wide transparency exercise, offering insights into the soundness of individual institutions.
Stress testing and climate resilience
Against a backdrop of high interest rates, low growth, and geopolitical tensions, the EBA closely monitored risks to financial stability. Two editions of the Risk Assessment Report were published, in spring and autumn, with the latter accompanied by the EU-wide transparency exercise, offering insights into the soundness of individual institutions.
Stress testing and climate resilience
Key methodological updates were introduced to enhance the EU stress-testing framework, notably:
- Inclusion of net fee and commission income
- Sensitivity to market risk shocks
In parallel, the EBA conducted a one-off climate risk stress test, designed around the Fit-for-55 policy package. The results indicated limited exposure to transition risks, though potential vulnerabilities emerge when climate factors are combined with adverse macroeconomic conditions.
What's next?
A consolidated and detailed version of the Annual Report will be published by end-June 2025, covering the full spectrum of EBA activities, including:
- Implementation of the Work Programme
- Budget and resource management
- Staff policy and internal controls
This first part provides a high-level overview of the year's strategic achievements and sets the stage for more detailed reporting to follow in the upcoming full report.
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