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Anti-Money Laundering Authority

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The Anti-Money Laundering Authority (AMLA), formal name the Authority for Anti-Money Laundering and Countering the Financing of Terrorism, is an agency of the European Union, established in 2024 in Frankfurt.

AMLA's establishment has been characterized as "much-needed" by major EU political forces,[1] and it has been described as transformational by a wide range of observers.[2][3][4] It is expected to strengthen the policy framework to ensure the integrity of the EU financial system, as the central component of the EU's anti-money laundering efforts.[5]

Background

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In February 2018, the demise of ABLV Bank triggered a debate on the structure of Anti-Money Laundering (AML) supervision in the European Union. A few weeks later, ECB Supervisory Board chair Danièle Nouy declared that it is “very embarrassing to depend on the United States to do the [AML] job. This has to change [...] We need a European institution that is implementing in a thorough, deep, consistent fashion this [AML] legislation in the euro area”.[6]: 2  In October 2018, the think-tank Bruegel published a study recommending the creation of a European AML Authority and providing a blueprint for its key features.[6]

The European Commission first proposed AMLA in July 2021 after a series of financial scandals further exposed significant flaws in AML supervision.[7] Described as a "game-changer in cracking down on dirty money in the EU," AMLA is intended to curb illicit financial flows while improving coordination between governmental intelligence authorities within the bloc.[8] On 22 February 2024, it was announced that AMLA would be located in Frankfurt.[9]

Establishment

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The EU Regulation establishing AMLA entered into force on 26 June 2024. That same day, the newly established agency advertised an open position for its chair.[10] The Frankfurt office is expected to open in 2025 and become fully functional by 2028.[11]

See also

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References

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  1. ^ "S&Ds hope for a swift start for the much-needed new European anti-money laundering watchdog". European Socialists & Democrats. 22 February 2024.
  2. ^ Mark Lautier & Deborah Gatt (16 October 2022). "AMLA: The game-changer in the fight against money laundering". Lexology.
  3. ^ Katherine Emirosan (2 May 2024). "AMLA is a game-changer for EU's AML/CFT framework". Fintech BoostUP.
  4. ^ Peter Reynolds (13 August 2024). "Europe's Game-Changer in Fight Against Financial Crime". EU Reporter.
  5. ^ "The EU's Anti-Money Laundering Authority and Its Role in Countering Terrorism Financing". sanctions.io. 21 May 2024.
  6. ^ a b Joshua Kirschenbaum & Nicolas Véron (25 October 2018), A better European Union architecture to fight money laundering, Brussels: Bruegel
  7. ^ "Brussels wants a new EU agency to tackle money laundering". Euronews. Retrieved 27 May 2024.
  8. ^ De Clercq, Geert. "EU's new Anti-Money Laundering Authority to be based in Frankfurt". Reuters. Retrieved 27 May 2024.
  9. ^ "Frankfurt to host the EU's new anti-money laundering authority (AMLA)". Council of the European Union. 22 February 2024.
  10. ^ Tom Sims (26 June 2024). "EU's new Anti-Money Laundering Authority is now official, seeks chair". Reuters.
  11. ^ "Italy, Germany, Netherlands short-listed for top job running EU dirty money watchdog". Politico. Retrieved 29 October 2024.