igamingnext photo
The EU’s new Anti-Money Laundering Authority (AMLA) will be based in Frankfurt.

The authority is planned as part of a raft of AML reforms, currently making their way through the European Parliament.

Named as the “centrepiece” of these updates to the EU’s money laundering framework, the AMLA will commence operations from mid-2025.

The regulator will have a staff of 400 and be responsible for combating money laundering through both indirect and direct supervision.

The body will have the capacity to impose sanctions and measures in the case of breaches.

The selection of Frankfurt follows a selection process that saw nine cities floated as potential candidates for the AMLA’s headquarters.

Frankfurt is considered one of the most important financial hubs in Europe. As such, the city features a deep pool of financial talent and is also the home of Germany’s central bank.

On the 30 January, hearings took place in the EU Parliament, which considered applications from Dublin, Rome, Paris, Vienna and Madrid, among others.

This led to a political agreement between the European Parliament and Council to settle on the AMLA’s seat.

According to the EU, this represents the first time that legislators have come to an agreement on the location of a decentralised agency.

EU concludes AML/CTF law negotiations

The agreement of where the AMLA should be based was the final element of the negotiations over the EU’s AML/CTF package.

The location of the AMLA will be now formally included as part of the legislation.

For now, the European Commission will be charged with actioning the procedural steps concerning the establishment and initial operations of the new authority.

“Today’s political agreement on where the new EU Anti-Money Laundering Authority will be based concludes the negotiations on the ambitious Anti-Money Laundering legislative package proposed by the Commission in July 2021,” said Mairead McGuinness, commissioner for financial services, financial stability and capital markets union.

“For the first time, all member states will be bound by the same AML rules and AMLA will play a key role in ensuring that those rules are consistently applied.

“The new authority will monitor risks and threats within and outside the EU, coordinate national supervisors and financial intelligence units, and directly supervise specific financial institutions depending on their risk level.

“I very much welcome the agreement reached by the co-legislators on an important aspect of the financial services sector.

“The Commission will now accelerate the preparatory work for the establishment of the Authority, with a view to ensuring it is operational to a significant extent already in 2025.”

Among other measures, the new AML law will extend the EU’s slate of AML/CTF obligations to cover crypto-asset service providers.

It will also require enhanced due diligence for transactions with cryptocurrency businesses, high-risk third countries and luxury goods traders.

Similar posts