In 2023–2024, EU financial institutions paid fines for AML breaches totaling more than €5 billion, with a peak of €2.3 billion in 2024 alone – three times higher than in previous years. Imagine: your cross-border group risks similar losses because of unsynchronized AML compliance programs when national regulators diverge in their interpretations of the EU AML package. Are you ready for AMLA supervision, which from 2025 will directly inspect the AML of 40+ high-risk obliged entities? In this article I will explain how to implement AML compliance services in the EU for financial institutions, minimize AML fines for 2023-2024 and achieve AML ROI metrics above 300%. Read to the end: get a step-by-step plan and real cases from COREDO’s practice COREDO, to turn regulatory challenges into a competitive advantage.
What is AML compliance for banks in the EU?
The COREDO team has repeatedly helped clients from Asia adapt local systems to these rules, reducing harmonization time from 6 to 2 months.
Key changes in the AML Regulation
Previously CDD thresholds varied – from €15 000 in Germany to €10 000 in the Netherlands; now €10 000 is fixed for cash transactions with a risk-based AML approach. COREDO’s practice confirms: banks that implemented these changes in advance reduced their false-positive alerts ratio by 25%. AML obliged entities are now required to check Politically Exposed Persons (PEPs) through Beneficial Ownership Registers and the European Central Platform.
| AML Services Component | Old rules (until 2025) | New rules (EU AML Package) | Impact on Financial Institutions |
|---|---|---|---|
| CDD Thresholds | Varied by country | Harmonized, lower for cash | Increased checks, higher costs |
| Transaction Reporting | National FIUs | Pan-European AML reporting | Faster cross-border analysis |
| High-Risk Oversight | National regulators | AMLA direct supervision (2028) | Stress tests for 40+ entities |
AMLA’s role in AML supervision in the financial sector
Anti-Money Laundering Authority (AMLA), based in Frankfurt, is rolling out phased AMLA powers from 2025 to 2028: from 2025, coordination of Financial Intelligence Units (FIUs); by 2028: direct supervision of high-risk obliged entities. This ensures supervisory convergence, focusing on cross-border AML cases. A solution developed by COREDO for a Cypriot bank integrated joint FIU cross-border analysis, speeding up STR processing by 40%.
EU AML Services — Main Obligations for 2025
AML services EU cover the full cycle from AML KYC to reporting, with a focus on AML/CFT obligations EU. Our experience at COREDO with Estonian fintechs has shown how timely implementation reduces operational risks by 35%.
AML KYC and Digital Onboarding under eIDAS
AML KYC is now integrated with eKYC eIDAS and eIDAS digital identification for AML digital onboarding. Steps:
- verification through the European Central Platform;
- automated CDD for PEPs;
- EDD for high-risk cases.
EU banks are implementing this to accelerate customer onboarding to within 24 hours. COREDO’s practice confirms the effectiveness for Singaporean clients expanding into the EU.
AML Transaction Monitoring and Risk-Based Approach
A risk-based AML approach requires calibration for PEPs and high-risk jurisdictions. The COREDO team configured such systems for a Slovak payment platform, reducing delays by 50%.
AMLA EU: Preparation for Direct Supervision 2025–2028
AMLA EU is changing the landscape of AML supervision in the financial sector, requiring proactive preparation. We at COREDO have already conducted AML stress-tests EU for 15+ clients.
EU AML stress tests and AMLA checks
Phased AMLA powers 2025-2028 start with high-impact financial institutions oversight. Recommendation: annual internal tests with a focus on Regulatory Technical Standards (RTS).
Role of the AML Compliance Officer in EU Groups
The AML compliance officer is evolving under AMLA compliance: now is responsible for the Compliance Manager role, AML group-level oversight and AML governance restructuring. In international banks, the role expands to group-wide AML risk management. Our experience has shown: clear separation reduces risks by 28%.
How can the AML false-positive rate be reduced?
Optimization of the AML false positives ratio directly affects AML ROI metrics. COREDO integrated tech solutions for Dubai groups, increasing efficiency by 45%.
Optimizing AML Transaction Monitoring with ML and GNNs
Cost-benefit analysis of ML-based AML tools shows payback in 12–18 months. For fintechs, reducing false positives in AML alerts is the key to scaling.
Measuring the effectiveness of AML programs
AML effectiveness metrics include response time to suspicious transactions (<24 h) and customer onboarding speed improvement. For AMLA supervision the priority is: false-positive alerts ratio and zero material findings. The answer: ROI is measured as (reduction in fines + personnel savings) / costs; typical – 3–5x.
| AML ROI Metric | Description | Target for AMLA | Example of improvement with Tech |
|---|---|---|---|
| False Positives Ratio | Share of false positives | <5% | ML reduces it by 40% |
| Response Time to STR | Time to handle suspicious transactions | <24 h | Real-time monitoring |
| Regulatory Findings | Number of violations | 0 material fines | Unified data architecture |
Impact of the EU AML Package on cross-border groups
EU AML package impact on financial institutions increases the requirements for scaling AML programs for cross-border financial groups. COREDO’s practice with UK holdings demonstrates successful harmonization.
Scaling AML under the Single Rulebook
For cross-border AML cases – centralized AML group-level oversight. This addresses “how to scale AML compliance in cross-border financial groups under the EU Single Rulebook”.
Avoid AML fines (2024–2028)
AML fines avoidance strategies for EU institutions 2024-2028 focus on regulatory findings reduction strategies and Sanctions compliance program integration. AML fines 2023-2024 show: timely impact assessments for RTS implementation prevent 70% of fines.
FHE, Data Governance and Unified Reporting
Data Privacy in Anti-Money Laundering with Fully Homomorphic Encryption
Fully Homomorphic Encryption (FHE) provides data privacy in AML systems with FHE technology, allowing analysis of encrypted data for unified AML reporting. Impact on AML data governance: compliance with GDPR for pan-European AML reporting. Ideal for oversight of high-impact financial institutions.
Investing in GNNs and ML for 2025: Is it worth it?
It’s worth investing in GNNs for 2025: they outperform traditional systems in complex cross-border cases.
AML Compliance for banks in the EU 2025
Here is a checklist for AML compliance services for banks in the EU 2025, based on COREDO cases on company registration in the Czech Republic and obtaining licenses:
- Assess current AML compliance against the AMLR EU Single Rulebook, identifying gaps in CDD/EDD.
- Implement AML digital onboarding with eKYC eIDAS to accelerate KYC.
- Set up AML transaction monitoring with ML to reduce false positives.
- Prepare the AML compliance officer for AMLA supervision through training and AML stress-tests.
- Integrate unified AML reporting for cross-border groups, synchronizing local teams with the EU AML agency. This answers “how to synchronize local AML teams” and “how to prepare the business for AML stress-tests”.
Key findings and recommendations
EU AML package radically changes EU AML framework for financial institutions, introducing AMLA compliance and EU Single Rulebook AML. Top-5 steps for ROI:
- ML for false positives;
- FHE for privacy;
- stress-tests;
- group oversight;
- unified reporting.
COREDO offers comprehensive support: from registration in the EU/Singapore/Dubai to AML services EU. Risk/benefit table:
| Risk | Strategy | Expected ROI |
|---|---|---|
| AMLA fines | ML monitoring | 70% reduction in fines |
| False Positives | GNNs + FHE | 30% savings on staff costs |
| Cross-border asynchrony | Single Rulebook | +20% onboarding speed |