New powers given to Europe's banking watchdog are not enough to stem the tide of dirty money sweeping through the bloc that has been revealed by recent scandals, the head of the European Banking Authority said.

In his first interview as chief executive, José Manuel Campa told the Financial Times that the mandate handed to the EBA this year in the wake of Danske Bank's €200 billion ($343.2b) money-laundering scandal was a narrow, co-ordinating role rather than one that will ensure even defences across the EU against ill-gotten gains.

"There have been cases of money laundering in Europe, yes, in