Response to AMLA Public Consultation RTS on Pecuniary Sanctions, Administrative Measures and Periodic Penalty Payments (EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism)

This response to AMLA’s draft RTS supports the overall applicability of the proposed sanctioning framework to the non-financial sector but identifies structural risks that may undermine effective and proportionate enforcement. It argues that the predominantly procedural gravity indicators risk misclassifying breaches where compliance systems are less formalised, recommending the inclusion of outcome-oriented measures capturing the effectiveness gap between controls and actual laundering risk. The paper highlights the risk of “benchmark drift” and calls for periodic review to ensure indicators remain connected to substantive AML outcomes. It further emphasises that sanction criteria and financial-strength assessments, as currently designed, are calibrated for financial institutions and require adaptation for non-financial entities such as partnerships and sole practitioners. Finally, it stresses the need for convergence transparency, capacity-building, and clear guidance to ensure consistent application across Member States, warning that without these safeguards, enforcement fragmentation may persist and weaken overall AML effectiveness.