Anti-Financial Crime and Tax Matters

The role of banks in anti-financial crime and tax matters

As primary gatekeepers of the financial system, banks play an essential role in providing access to finance, while protecting society from illicit activities, and safeguarding the integrity of the financial system. The gatekeeping function is reflected in several areas of public policy, notably the fight against financial crime, the implementation of sanctions and the contribution to tax compliance and cross-border tax transparency.

Anti-money laundering and counter-terrorist financing. Banks act as a first line of defence against financial crime by identifying, assessing, mitigating and reporting risks through AML and CTF frameworks. Customer due diligence, ongoing monitoring and suspicious transaction reporting are among the key mechanisms through which banks contribute to protecting the financial system from illicit activity.

Sanctions. Banks play a key role in implementing financial sanctions imposed by the EU, the UN and other relevant authorities as part of broader foreign and security policy objectives. Robust sanctions compliance programmes, including the screening of customers and transactions against applicable sanctions lists, enable banks to comply with these requirements and prevent the financial system from being used to circumvent restrictive measures.

Tax. Banks also contribute to tax compliance and cross-border tax transparency. Through specific due diligence and reporting obligations, they provide information that supports tax authorities in combating tax evasion. As custodians and intermediaries in cross-border investments, banks also facilitate withholding tax relief and refund procedures, helping investors obtain the tax treatment to which they are entitled.

The gatekeeping role of banks therefore extends well beyond controlling access to financial services. It requires banks to balance their responsibilities for protecting the integrity of the financial system and supporting broader societal objectives with their core role of providing finance to households and businesses and supporting the European economy.

Our objectives

Enhance the effectiveness of anti-financial crime (AML and sanctions) and tax regimes through clear, proportionate rules and ongoing public-private dialogue.
Reduce regulatory fragmentation across the EU by harmonising standards and frameworks avoiding unnecessary complexity and compliance costs, and creating a level playing field.
Build an effective regulatory environment that recognises banks as critical infrastructure for the European economy while accounting for practical implementation constraints.

EBF's contribution to the dialogue on anti-financial crime and tax policy

The EBF actively engages with European institutions and agencies, as well as international standard-setting bodies, to contribute to the development of effective anti-money laundering (AML), financial sanctions and tax policies, drawing on the practical expertise of banks operating across multiple jurisdictions and navigating complex and evolving regulatory frameworks.

The EBF seeks to provide evidence-based analysis of legislative and policy initiatives, to identify implementation challenges, and to put forward concrete and pragmatic solutions to enhance the effectiveness, consistency and workability of regulatory frameworks.

We contribute through position papers, policy blueprints and direct dialogue with a broad range of public-sector stakeholders, including policymakers, standard-setters, law enforcement bodies, and regulatory and supervisory authorities.

At EU level, our engagement includes the European Commission, European Parliament, Council and Member States, the Anti-Money Laundering Authority (AMLA), Europol and other relevant authorities and agencies. At the international level, we engage with key standard-setting bodies and organisations, including the OECD and FATF.

This work is supported by the following EBF’s dedicated policy and expert groups:

Financial Crime Strategy Group: