Regulatory Insights - August 2025

Technology can make EU anti-money laundering supervision more effective, says EBA

EBA published a report on 12 August 2025 on how technology tools (SupTech) can improve the supervision of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT). The report examines ongoing innovation by EU authorities and how technology can help implement the new EU AML/CFT framework.

Key points:

• The EU has created a new authority, the AMLA, to coordinate AML/CFT supervision across member states. This change offers a chance to modernise how supervision is done, making it more data-driven and risk-focused.
• The EBA conducted a survey of national supervisors and hosted a workshop to understand trends, challenges, and best practices in using technology for AML/CFT supervision. issues with data governance.
• Almost half of the technology tools identified are already in use, with another third under development. These tools help improve data quality, foster collaboration between authorities, and risk identification.
• Challenges remain, including limited resources, unclear legal rules, and issues with data governance.

The report shows that technology can strengthen AML/CFT supervision across the EU, helping authorities detect risks more efficiently and coordinate better while adapting to the new framework.

ESMA publishes overview of cross-border fund distribution

ESMA published on 21 August 2025 a comprehensive overview of rules for the cross-border distribution of UCITS and AIFs across the EU-27 and EFTA countries (Iceland, Liechtenstein, Norway).

Key highlights:

• Notification & passporting: Funds must submit core documents—such as the prospectus, KIID, and reports—to host NCAs before marketing; some jurisdictions allow marketing once an acknowledgment is received.
• Marketing communications: Materials must be clear, fair, and not misleading. Most NCAs review marketing after dissemination rather than through pre-approval.. and highlights jurisdictions differences.
• Fees & transparency: The overview provides links to national fee schedules
• Regulatory context: The publication aligns with the CBDF Regulation (EU 2019/1156), complementing UCITS, AIFMD, and PRIIPs frameworks.

This resource is intended as a practical reference for firms planning cross-border fund distribution, while noting that national rules and procedures may still vary.