The AMLA is coming to Frankfurt am Main in 2024

After Brexit, the German location Frankfurt will be further strengthened as a financial center with the AMLA

Introduction

The European Union has decided to create a new authority to combat money laundering and terrorist financing, the Anti-Money Laundering Authority (AMLA). This decision is part of a comprehensive package of measures aimed at strengthening the EU's effectiveness in combating these serious threats. The AMLA is intended to play a central role in a unified European framework and improve cooperation and coherence between Member States.

 

Background

The creation of the AMLA is a direct response to growing concerns about money laundering activities and terrorist financing within the EU. Despite existing directives and measures, research has shown that existing approaches are not sufficient to effectively combat these complex and cross-border challenges. The AMLA aims to close this gap by providing a specialized and centralized supervisory structure.

 

Organization and personnel

The AMLA will be based in Frankfurt, making the city a central hub in the fight against money laundering in the EU. The authority is expected to employ 100 staff at the start and up to 400 or 500 after three years, with a variety of specialist backgrounds and extensive experience in financial supervision, jurisdiction and international cooperation.

 

Tasks and powers

 The AMLA will have wide-ranging powers to achieve its objectives. These include:

 - The direct supervision of cross-border financial institutions that are deemed to be particularly high-risk. It is expected that there will be 12 to 20 financial institutions, but the list has not yet been finalized.

- The coordination and monitoring of national financial supervisory authorities (FIUs) to ensure that AML/CFT regulations are applied consistently.

- The ability to issue guidelines, recommendations and binding decisions to ensure compliance with AML/CFT regulations.

 

Funding

The AMLA is financed by fees charged by the supervised entities and by contributions from the EU budget. This financing structure is intended to ensure the independence and effectiveness of the authority.

 

Cooperation with national authorities

A key aspect of the AMLA will be close cooperation with national supervisory authorities and financial intelligence services. The Authority will carry out regular reviews and provide support to ensure that national authorities can carry out their tasks effectively. In addition, the AMLA will establish a central network for the exchange of information and best practices between Member States.

 

Timetable and implementation

The AMLA is scheduled to start work in 2024 and be fully operational by 2027. This timetable includes setting up the infrastructure, recruiting staff and developing the necessary legal and operational framework.

 

Conclusion

The establishment of the AMLA marks a significant step forward in the EU's strategy to combat money laundering and terrorist financing. By creating a centralized and specialized authority, the EU will be better able to effectively combat these threats and protect the integrity of the European financial system.

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