Financial Crime World

Germany Chosen as New Home for EU’s Anticorruption Agency: Frankfurt to Host ‘Dirty Money’ Watchdog

In a significant victory for Germany, the city of Frankfurt has been selected as the headquarters for the European Union’s new anti-money laundering agency (AMLA), marking a major step forward in the fight against financial crime.

The Decision

After a competitive bidding process, Frankfurt emerged as the clear winner over Brussels, Dublin, and Paris. The decision comes with great praise from officials, who hail it as a major coup for Germany and a significant boost to its reputation as a center for financial services and compliance in Europe.

What is AMLA?

The AMLA will play a crucial role in ensuring the integrity of the European financial system by overseeing compliance with EU anti-money laundering rules, providing cross-border supervision of financial entities exposed to illicit finance risk, and improving information sharing between national Financial Intelligence Units.

Frankfurt’s Selection

Frankfurt, home to the European Central Bank, was selected due to its reputation as a center for financial services and compliance in Europe. The city’s selection has been welcomed by state officials, who see it as an opportunity to further strengthen Frankfurt’s position as a hub for financial services.

Quotes from Officials

  • “We are thrilled that Frankfurt has been chosen as the headquarters for AMLA,” said Willem van de Voorde, Belgium’s ambassador to the EU. “This is a significant step forward in the fight against financial crime and will help ensure the integrity of our financial system.”
  • “The AMLA in Frankfurt creates a center for EU supervision: the immediate proximity of the ECB and AMLA is good for both institutions,” said Hessian Finance Minister Alexander Lorz.

What’s Next?

The agency is expected to launch in mid-2025 and will be tasked with overseeing compliance with anti-money laundering rules across the EU. It will also have access to beneficial ownership information and will apply to new categories of companies, including football clubs.

Benefits of AMLA

  • “This is a game-changer in cracking down on dirty money in the EU,” said Eva Poptcheva, a Spanish member of the European Parliament. “AMLA will supervise the riskiest financial entities, oversee the non-financial sector, and play a crucial role in stopping evaders from circumventing targeted financial sanctions.”
  • Germany has long been seen as a leader in tackling financial crime, and its selection as host city for AMLA is seen as a major coup.