##t supervisor ; this is ruled out by the treaty. furthermore, there are also only limited synergies between prudential supervision and aml / cft supervision. from our perspective, a strategy to strengthen the eu aml / cft framework could comprise at least two elements. first, a further harmonisation of the aml / cft rulebook could address possible divergences and shortcomings in the way the rulebook was transposed in different member states. it could also strengthen enforcement of aml / cft compliance through aml / cft supervisors by providing clear regulatory guidance and harmonised, stronger supervisory powers. this could be achieved by transforming the aml directive into an eu regulation, which would have the potential of defining a harmonised anti - money laundering framework that is directly applicable throughout the european union. to be effective, the scope of a future regulation should be as broad and encompassing as the legal base would allow, also with a view to moving towards a more rulebased approach, while fully respecting the legal constraints and the remaining variety of national institutional setups, 1 particularly in the area of criminal law and justice systems. 2 3 / 4 bis central bankers'speeches second, supervisory fragmentation should also be addressed, especially in relation to coordination and cooperation procedures. this could be achieved by charging an eu body or a new authority with aml / cft tasks. this eu body or authority should be independent to allow it to act decisively in addressing ml / tf risks. it could detail a single aml / cft rulebook via technical standards and / or guidelines, coordinate its implementation and ensure strict and harmonised aml / cft supervisory practices in the eu and across member states, leveraging on the experience and expertise of national supervisors. the eu aml / cft body should make sure that accurate and timely assessments on possible irregularities and ml / tf risks are proactively provided to prudential supervisors, including the ecb in its supervisory role, 3 so these risks can be factored into their prudential assessments. finally, if supported by co - legislators and primary law, the eu aml / cft authority could be equipped with direct aml / cft supervisory powers. conclusion ladies and gentlemen, anti - money laundering and combating the financing of terrorism are challenging endeavours. first, they involve several areas of law at both the eu level and national levels. changes that lead to an efficient distribution of competences might

yves mersch : anti - money laundering and combating the financing of terrorism – recent initiatives and the role of the european central bank speech by mr yves mersch, member of the executive board of the european central bank and vice - chair of the supervisory board of the european central bank, at the colloque de l ’ aedbfeurope, paris, 15 november 2019. * * * introduction a number of high - profile cases of the alleged systematic use of banks for money laundering have been reported over the last two years, along with reports of investigations and other follow - up measures being taken by national authorities. this has put anti - money laundering ( aml ) and combating the financing of terrorism ( cft ) high on the agenda of policymakers at both the european and global levels. the european commission, eu legislators and other authorities all rightly agree that misuse of the financial system cannot be tolerated. they have started to strengthen the eu ’ s aml / cft framework, and further changes are in the pipeline. so let us take a closer look at three things. first, what are the objectives of combating money laundering and terrorist financing? second, what is it that the ecb can – and cannot – do in this area? and third, how might the european aml / cft framework develop in the future? objectives of combating money laundering and terrorist financing the eu ’ s current aml / cft framework largely follows the international standards established by the financial action task force. the framework has two main objectives. the first is to protect society from crime. and the second is to protect the stability and integrity of the european financial system. eu legislators recognise that money laundering, terrorist financing and organised crime are significant problems that are damaging the integrity, stability and reputation of the financial sector and threatening the internal market and the internal security of the union. they also acknowledge that acts of terrorism are one of the most serious violations of the universal values of human dignity, freedom, equality and solidarity, and of the enjoyment of human rights and fundamental freedoms on which the union is founded. efforts to combat money laundering and terrorist financing concern two areas of eu law : the establishment and functioning of the internal market and judicial cooperation in criminal matters. these two areas differ in the level of harmonisation which can be pursued under the current treaties. even though the aml / cft framework has been harmonised to a significant extent at the eu level, it remains strongly connected to the