The European Council (EC) and parliament have provisionally agreed to establish an Anti-Money Laundering Authority (AMLA) to combat money laundering and terrorism financingб reports The Banker. AMLA will possess direct supervisory authority over high-risk cross-border institutions and indirect oversight across the broader financial sector, extending to the non-financial sector.
Daniel Ferrie, the European Commission spokesperson for financial services, financial stability, and Capital Markets Union, notes that AMLA marks a significant shift in the EU's anti-money laundering framework. According to George Voloshin, a global expert on anti-financial crime, AMLA is a much-needed development to address the evolving threats in Europe.
AMLA will assume responsibilities from existing agencies, both supranational, like the European Banking Authority (EBA), and member state government groups responsible for anti-money laundering and terrorism financing (AML/CFT). A key distinction is AMLA's granular oversight compared to the current decentralized approach within member states. The authority will directly supervise high-profile, higher-risk entities vulnerable to money laundering, imposing fines of up to €10 million or 10% of annual turnover. AMLA's oversight may extend to crypto-asset service providers and other non-banking institutions deemed high-risk or operating across borders.
The provisional agreement suggests AMLA will initially directly supervise up to 40 entities, regulating and imposing penalties independently. Beyond these, AMLA will indirectly supervise less exposed institutions through national supervisors, influencing measures and standards while fostering a shared vision of AML/CFT in Europe. AMLA will also host the financial intelligence units' information exchange platform and assume Europol's role in coordinating EU-based FIU activities. It will be responsible for issuing guidance on AML/CFT, taking over functions from the EBA.
The location of AMLA's headquarters is yet to be decided, with nine member states vying to host it. While discussions on anti-money laundering requirements for the private sector and related directives are ongoing, AMLA aims to be operational by 2027 pending finalization and approval of the provisional agreement.
