EU Sets Up New Anti-Money Laundering Authority

The European Union has taken a significant step to combat money laundering and terrorist financing by establishing a new authority, the Anti-Money Laundering Authority (AMLA). The primary objective of AMLA is to protect the public interest, financial stability, and integrity of the EU’s financial system.

Supervisory Role

AMLA will have a dual role in supervision:

• Direct Supervision: AMLA will directly supervise a pre-defined number of Systematically Important Financial Institutions (SOFIs) to ensure compliance with anti-money laundering requirements.
• Indirect Supervision: As an indirect supervisor, AMLA will oversee the entire financial sector for anti-money laundering purposes, monitoring developments across the internal market and identifying weaknesses in the application of anti-money laundering rules.

Selection Process

For direct supervision, AMLA will select SOFIs based on their risk profile, considering factors such as:

• Number of Member States they operate in
• Transactions with third countries

In cases where no high-risk obliged entity qualifies for direct supervision in a Member State, an additional selection process will be carried out.

Fees for Functioning

AMLA will levy fees on:

• Systemically Important Financial Institutions (SOFIs)
• Non-selected obliged entities that operate in at least six Member States

National authorities will continue to levy fees on obligated entities that are also subject to AMLA fees, with coordination between the two to ensure cost-effectiveness.

Chair and Executive Board

The authority will be headed by:

• Chair: responsible for overseeing the implementation of its objectives
• Executive Director: oversees the day-to-day operations of AMLA

An Executive Board will also be established to provide strategic guidance and oversight.

For more information on AMLA, please visit the European Commission website at europa.eu/aml.