Skip to content

EU milestone: establishment of the AMLA

RegLab Summer Reads

Summary

In this series of summer reads, we cover an update or relevant case related to AML every month in summer. This third edition, we focus on the AMLA.

In fact, the EU has reached a major milestone in the fight against money laundering. The Anti-Money Laundering Authority (AMLA) was officially established on 26 June 2024, taking over the coordination and supervision of national AML/CFT supervisors. This new European regulator promises significant improvements in the way money laundering activities are recognised and tackled.

 

 

How did this come about?

In 2021, the European Commission presented an action plan to achieve an EU-wide AML policy. By now, this plan is at an advanced stage. Following approval by the European Parliament in April and confirmation by the Council in May, the EU's AML/CFT rules have been definitively strengthened. The creation of the AMLA is key in this regard.

 

What does the AMLA do?

The AMLA will have a dual role:

  1. Coordination and harmonisation: In the non-financial sector, AMLA will ensure better cooperation and uniformity.
  2. Direct supervision: In the financial sector, AMLA will directly supervise selected high-risk entities operating in at least six member states. In addition, AMLA can take over supervisory tasks at the request of national supervisors or on its own initiative.

AMLA will also improve cooperation between different Financial Intelligence Units (FIUs). This includes facilitating information exchange and sharing best practices, such as standards for reporting.

 

What does this mean for you and your firm?

For you and your firm, this means there will be more clarity on AML supervision and what is expected of you. Unfortunately, this also comes with some drawbacks. The cost of implementing the supervision is likely to increase, as about three quarters of the AMLA's annual expenditure is funded by contributions from reporting entities. In addition, there may be more requests for information, leading to a slight increase in the administrative burden. Luckily, RegLab can help you with this.

 

From when should I take this into account?

AMLA's headquarters will open in Frankfurt (Germany), in the first quarter of 2025. Operational activities are expected to start in summer 2025, with direct supervision from 2028. By then, AMLA will be fully operational and staffed.

 

With sunny regards,

Team RegLab

 

Tags