Money laundering and terrorism financing (ML/TF) pose a serious threat to the integrity of the EU economy and financial system and the security of its citizens. Europol has estimated that around 1% of the EU’s annual Gross Domestic Product is ‘detected as being involved in suspect financial activity’.
In July 2019, following a number of prominent cases of alleged money laundering taking place at EU credit institutions, the Commission adopted a set of document analysing the effectiveness and efficiency of the EU Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime as it stood at that time, and concluding that reforms were necessary, including in the areas of supervision and of cooperation between Financial Intelligence Units (FIUs).
In this context, the EU’s Security Union Strategy for 2020-2025 highlighted the importance of enhancing the EU’s framework for anti-money laundering and countering terrorist financing in order to protect Europeans from terrorism and organised crime.
The European Parliament and EU Council on 14 December 2023 reached provisional agreement Wednesday to create a new European authority for countering money laundering and financing of terrorism (AMLA).
The creation of the new authority is expected to transform AML/CFT supervision in the EU and enhance cooperation among Financial Intelligence Units (FIUs).
AMLA will be the central authority coordinating national authorities to ensure the correct and consistent application of EU rules. In the financial sector, the Authority will directly supervise those financial sector entities exposed to the highest risk of money laundering and terrorism financing.
AMLA will also support FIUs to improve their analytical capacity around illicit flows and make financial intelligence a key source for law enforcement agencies.
The Authority will facilitate cooperation between FIUs, including by establishing standards for reporting and information exchange, supporting joint operational analyses, and by hosting the central online system, FIU.net.
Still under discussion as part of the AML legislative package are a new Regulation establishing a single rulebook for AML/CFT, and a new AML/CFT Directive.
