ARGA Observatory participated in the public consultation of Anti-Money Laundering Authority (AMLA) on the draft technical standards for Customer Due Diligence (CDD), aimed at establishing harmonized rules for customer identification, data verification, and risk assessment within the future EU AML/CFT framework.
In its submission, ARGA supported the general applicability of the proposed standards while emphasizing the need for greater flexibility in the context of cross-border activities and complex client structures. Particular attention was drawn to the risks of an overly formalistic approach to documentation and verification procedures, which may create operational barriers and undermine the effectiveness of the risk-based approach.
ARGA proposed explicitly allowing the use of functionally equivalent documents and alternative information sources, provided they ensure a comparable level of reliability. It also highlighted the importance of a genuine—not merely declarative—application of the risk-based approach, including the possibility of simplified procedures in objectively low-risk scenarios.
ARGA’s contribution is aimed at ensuring proportionality of regulation, operational feasibility, and proper consideration of cross-border specificities within the single European financial space.
AMLA Consultation
Criteria for Business Relationships, Occasional Transactions, and Linked Transactions
(Article 19(9), Regulation (EU) 2024/1624)
ARGA Observatory submitted its position as part of the AMLA consultation on the criteria for classifying business relationships, occasional transactions, and linked transactions—key elements in determining the scope of AML controls.
While recognizing the general applicability of the proposed criteria, ARGA pointed out the risks of overly formal interpretation, particularly in cross-border and non-standard situations. It noted that factors such as transaction frequency or expected duration of interaction do not always reflect the true economic substance of a relationship.
ARGA recommended shifting the focus from formal indicators to the economic substance of interactions, including transaction purpose, behavioral patterns, contractual arrangements, and the continuity of business relationships. Regarding linked transactions, it proposed considering not only temporal and quantitative factors but also contextual elements, coordination of actions, and cross-jurisdictional connections.
Additionally, ARGA emphasized the importance of proportionality and the need to avoid excessive burdens on obliged entities, including risks of over-compliance and increased false positives.
This contribution aims to enhance the accuracy of regulation and its alignment with real-world cross-border practices.
European Commission Consultation
Evaluation and Impact Assessment of Council Framework Decision 2008/841/JHA on the Fight Against Organised Crime
ARGA Observatory took part in the consultation of the European Commission on the evaluation of the EU legal framework for combating organised crime and the development of future policy changes in this area.
In its response, ARGA highlighted the growing threat posed by organised crime and its strongly cross-border nature. Particular focus was placed on issues such as corruption, infiltration of criminal networks into the legal economy, violence, and the undermining of state institutions.
ARGA supported strengthening mechanisms for detection, investigation, and prosecution, as well as enhancing international cooperation, including coordination among Member States and EU institutions.
At the same time, ARGA’s position remains balanced and does not advocate for purely formal tightening of regulation. It emphasizes the importance of institutional effectiveness, inter-agency cooperation, and the development of specialized tools to combat transnational criminal networks. This track reflects ARGA’s contribution to shaping the strategic direction of EU criminal policy.
European Commission Consultation
Draft General Block Exemption Regulation (GBER)
ARGA Observatory submitted a written position on the draft General Block Exemption Regulation (GBER), which governs the application of State aid rules in the European Union.
In its submission, GBER was described as a key instrument for ensuring legal certainty and the effective delivery of State aid while maintaining a balance with competition rules. ARGA highlighted the importance of this framework in the context of increasing economic fragmentation and the need to stimulate investment, including in the green and digital transitions.
ARGA’s main proposals focus on improving legal clarity, reducing administrative burdens, and addressing inconsistencies in the interpretation of rules across Member States. Particular attention was given to strengthening the cross-border dimension of the regulation and supporting projects of pan-European importance.
ARGA also supported a clearer integration of the risk-based approach in the application of State aid rules, including differentiated requirements depending on risk levels and reducing incentives for overly cautious application (over-compliance).
The proposed position aims to contribute to a more effective, proportionate, and operationally workable model of State aid regulation within the European Union.