AMLA Becomes Official: New EU Anti-Money Laundering Authority Enters into Force

The European Union has officially launched its new framework for tackling money laundering and terrorist financing. The European Banking Authority (EBA) has welcomed this development, which includes the establishment of a dedicated anti-money laundering and countering the financing of terrorism authority (AMLA).

The new legislative package, agreed upon by EU co-legislators in 2024, marks a pivotal moment in the EU's approach to financial security. It introduces a harmonized and single AML/CFT rulebook, alongside the creation of AMLA. The Regulation establishing AMLA (2024/1620), the Regulation establishing a single AML/CFT Rulebook (2024/1624), and the revision of the AML/CFT Directive (AMLD6 - 2024/1640) were published in the Official Journal of the European Union on June 19, 2024.

Since 2020, the EBA has been at the forefront of coordinating the EU financial sector's efforts against money laundering and terrorist financing. The authority will continue to play a crucial role during the transition period, retaining its AML/CFT powers and mandates until December 2025 to ensure continuity.

José Manuel Campa, Chairperson of the EBA, stated, "We are committed to facilitating a smooth transition and making the EU a hostile place for financial crime. Our work since inception has laid a solid foundation for this new regime, ensuring that financial institutions and their supervisors apply effective AML/CFT controls across the EU."

The EBA's priorities for 2024 and 2025 include developing:

1. A methodology for selecting financial institutions for direct EU-level AML/CFT supervision
2. A common risk assessment methodology
3. Guidelines on information necessary for customer due diligence
4. Criteria to determine the seriousness of AML/CFT provision breaches

The authority will provide its technical advice to the European Commission in October 2025, supporting AMLA's efficient and effective operation from its establishment.

Once fully operational, AMLA will directly supervise cross-border credit and financial institutions exposed to the highest money laundering and terrorist financing risks. Additionally, it will draft AML/CFT standards and guidelines, oversee AML/CFT supervisors, and coordinate Financial Intelligence Units (FIUs).

During the transition, the EBA will support national competent authorities in preparing for AMLA and coordinate with the European Commission's AMLA taskforce, responsible for the new authority's establishment and initial operations.

Importantly, even after transferring its AML/CFT mandates to AMLA by the end of 2025, the EBA will continue to play a vital role in the fight against financial crime. It will remain responsible for addressing money laundering and terrorist financing risks across its prudential remit, ensuring a comprehensive approach to financial security in the EU.

As the EU strengthens its defenses against financial crime, this new framework represents a united front in the ongoing battle against money laundering and terrorist financing, promising a more robust and coordinated approach across the European financial sector.

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