EU Council and Parliament reach agreement on AML authority

Thursday 14 December 2023 12:52 CET | News

The European Council and the Parliament have reached a provisional agreement on the establishment of a new European authority.


The Anti-Money Laundering Authority (AMLA) would act as a key component of a broader anti-money laundering initiative, which was designed to protect EU citizens and the European financial system from the threats of money laundering and terrorist financing. Under the agreement, AMLA will possess both direct and indirect supervisory authority over high-risk entities within the financial sector, and the location of the agency's seat will remain under discussion to be determined in separate negotiations.  

Specifically, the ongoing negotiations between the Council and Parliament include discussions on the selection process principles for AMLA's seat location, and once agreed upon, the seat selection process will be concluded, and the location will be incorporated into the regulation. 

Acknowledging the transnational nature of financial crimes, AMLA aims to enhance the effectiveness of the anti-money laundering and countering the financing of terrorism (AML/CFT) framework. It will collaborate with national supervisors to ensure compliance with AML/CFT-related obligations in the financial sector and extend its support to non-financial sectors while coordinating with financial intelligence units in member states.


The European Council and the Parliament have reached a provisional agreement on the establishment of a new European authority.


The scope of AMLA's powers 

The agreement grants AMLA the power to impose pecuniary sanctions on selected obliged entities in cases of serious, systematic, or repeated breaches of directly applicable requirements. AMLA's supervisory scope includes certain high-risk credit and financial institutions, including crypto asset service providers, operating across borders. 

For non-selected entities, AML/CFT supervision will primarily remain at the national level. AMLA's role in the non-financial sector involves support, conducting reviews, investigating breaches, and issuing non-binding recommendations. The supervisory database maintained by AMLA will be expanded in scope and content. 

AMLA will monitor the implementation of targeted financial sanctions, asset freezes, and confiscations by selected obliged entities. The governance structure of AMLA includes a general board composed of representatives from all member states' supervisors and financial intelligence units, as well as an executive board responsible for governing the authority. 

The provisional agreement introduces an improved whistleblowing mechanism, limited to reports from the financial sector, with the authority able to consider reports from national authorities' employees. AMLA can also settle disagreements with binding effects in financial sector colleges and, upon request, in other cases.

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Keywords: regulation, AML, fraud prevention, money laundering
Categories: Fraud & Financial Crime
Companies: European Council
Countries: Europe
This article is part of category

Fraud & Financial Crime

European Council

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