Europe’s main banking regulator fears that money laundering and terrorist financing risks may be going unchecked because of weak controls and compliance among fintech, regtech, and crypto firms. The European Banking Authority (EBA) also found that the risk-based approaches financial regulators take across the European Union (EU) to police these new entrants are often inconsistent, lack clarity, and are “uneven” in terms of their effectiveness.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...