AMLA consultation on draft RTS on sanctions

Accountancy Europe submitted its feedback and recommendations to AMLA in response to the public consultation on draft RTS concerning pecuniary sanctions, administrative measures, and periodic penalty payments under Article 53(10) of Directive (EU) 2024/1640. 

We fully support the objective of the EU framework to harmonise sanctions and administrative measures in the field of AML/CFT across the EU. However, the draft RTS, originally designed for financial institutions, does not fully reflect the risk profiles and operational realities of accountancy practices. Missing sector-specific indicators, unclear definitions, and overly broad criteria could lead to divergent interpretations, disproportionate sanctions, and legal uncertainty. 

We encourage AMLA to actively engage with non-financial stakeholders to better understand their operational realities. Early and structured dialogue will allow practical feedback, ensuring that the standards are workable, proportionate, and aligned with real-world practices across the non-financial sector. Accountancy Europe and its members stand ready to support AMLA in this effort. 

Tailoring the RTS for non-financial sector obliged entities 

As currently drafted, the RTS are primarily designed for the financial sector and do not adequately reflect the operational realities of non-financial professions, particularly small and medium-sized practitioners. AMLA should more clearly incorporate sectoral differentiation and proportionality in the final standards to ensure they are practical, effective, and aligned with the realities of non-financial entities. 

Making sanctions more relevant to the non-financial sector 

While harmonisation is welcome, aspects of the classification methodology appear aimed at large and complex financial institutions and are not suitable for accountancy and audit practices. Overly complex methodologies for assessing breaches in smaller entities risk limited supervisory benefit and increased administrative complexity. 

Sanctions as part of a broader enforcement framework 

Sanctions are essential for AML/CFT enforcement but should not be the sole mechanism for compliance. Overreliance on pecuniary penalties risks a reactive system focused on punishment rather than effective risk prevention. A multipronged framework – combining credible sanctions with structured supervisory engagement, remediation pathways, and practical support – will ensure enforcement achieves real risk reduction rather than purely procedural compliance.