CINOA’s feedback on AMLA’s consultation on the risk assessment of obliged entities in the non-financial sector
CINOA has submitted its response to the European Anti-Money Laundering Authority (AMLA) consultation on the draft Regulatory Technical Standards (RTS) on the methodology for assessing and classifying the inherent and residual risk profile of obliged entities in the non-financial sector, and the frequency at which such risk profiles are to be reviewed, under Article 40(2) of Directive (EU) 2024/1640.
CINOA also responded to the two related surveys concerning the data points used to assess inherent risk, including the sector-specific questionnaire for persons trading or acting as intermediaries in cultural goods, and the data points used to assess the quality of AML/CFT controls. Together, these measures will help determine what information supervisors collect from art market businesses and how that information is used to assess their AML/CFT risk profile.
Deadline to provide feedback: 27 September 2026
Link to Consultation: https://www.amla.europa.eu/policy/public-consultations/consultation-draft-rts-assessment-inherent-and-residual-risk-profile-obliged-entities-non-financial_en
CINOA’s submissions focus particularly on ensuring that the new supervisory methodology is proportionate and workable for the art and antiques trade, which is characterised by a large number of micro and small, often owner-managed businesses without dedicated compliance or IT teams. CINOA highlighted that, although much of the information requested may already be held by businesses, it is not necessarily recorded in a way that allows it to be easily extracted and aggregated, meaning the proposed reporting requirements could involve substantial manual work or changes to existing systems.
CINOA therefore proposed a two-stage approach for smaller entities, under which supervisors would initially collect a limited set of core information focused on the principal risk indicators, with the full set of data requested only where higher-risk factors are identified or further information is considered necessary. CINOA also encouraged supervisors to make use of information they already hold or which is available from other public authorities, rather than requiring small businesses to report the same information again.
In its sector-specific feedback, CINOA also identified practical issues with a number of the proposed data points for the cultural goods sector. In particular, it called for clearer terminology and scope regarding customers and suppliers, including which activities and transactions should be counted, and highlighted that dealers have not previously been required to report customer, supplier and transaction data in this format. For many smaller businesses, compiling the requested information could therefore require significant manual review.
More broadly, CINOA stressed that turnover alone is not necessarily an accurate measure of the size or administrative capacity of an art market business. The submission calls for proportionality to take account of the actual structure and resources of the business, as well as the frequency and nature of its transactions.
CINOA’s feedback aims to support a supervisory framework that enables authorities to identify higher-risk activity while ensuring that reporting and compliance requirements remain proportionate to the size, structure and risk profile of art and antiques businesses.
Read CINOA’s full submissions here: