On 14 February 2024, the Council and the European Parliament finalised the agreement on the creation of the new European Anti-Money Laundering and Anti-Terrorist Financing Authority (AMLA), the centrepiece of the so-called ‘AML package’. The package, in fact, includes EU Regulation 2024/1620 establishing the new authority, for which Frankfurt am Main (Germany) was chosen as the seat.
The AMLA, which will start to be operational in the summer of 2025, will be the European supervisory authority for AML/CFT, with tasks based on two main pillars, namely supervision of the financial landscape and coordination of the Financial Intelligence Units (FIUs), with powers also over the non-financial system. Its mandate is therefore very broad, encompassing the role of supervisor, regulator and standard setter.
1. The key roles of the AMLA
In a mirror-image manner to the European Central Bank (ECB), the AMLA will first and foremost have the power of direct supervision in the area of AML/CFT over specific credit and financial institutions in the European Union, the identification criteria of which present similarities to those applied today for prudential banking supervision. The AMLA, in fact, will be able to exercise direct supervision over 40 groups and entities among financial and credit institutions and cryptocurrency service providers – still to be identified – that operate across borders (i.e. in at least 6 Member States) and that are considered to be at greater risk of money laundering and terrorist financing as provided in Article 2(1)(1) of Regulation (EU) 2024/1620. The criteria for the identification and selection of the 40 groups and entities will be detailed in an ad hoc regulatory technical standard, scheduled to be issued in January 2026, and subject to review every three years.
For these 40 groups and entities, the AMLA will have enforcement and sanctioning powers (Article 6(1)) and will be able to conduct both onsite and offsite inspections like any other supervisory authority; similar to what is envisaged in the area of prudential supervision, Joint Supervisory Teams will be created to carry out inspection activities, composed of staff from the AMLA and local financial sector supervisory bodies (Article 16, paragraph 1). The composition and functioning of the Joint Supervisory Teams will be described through technical implementing rules.
With respect to AML obliged entities that will not be part of the 40 above, however, the AMLA will be able to exercise the power of indirect supervision through coordination and supervision of the national AML authorities, in the same way that the ECB plays an indirect supervisory role for credit institutions that are not considered systematically relevant. For these, supervision activities will be coordinated through AML colleges, in which AMLA staff may also participate. In exceptional circumstances, such as serious AML/CFT deficiencies or particular regulatory violations, even following a reasoned request by the local Financial Sector Supervisory Authority, the AMLA may assume the power to intervene directly on financial intermediaries even if they are not part of the 40 selected obliged entities (Article 5(3)(c) of Regulation (EU) 2024/1620 and Article 14), as well as may ask their supervisors to consider imposing sanctions (Article 32, paragraph 2).
With regard to non-financial intermediaries, AMLA will assume an oversight role over the non-financial system, although the instruments at its disposal will be less incisive. In detail, AMLA will play a supportive role, conducting audits and investigating possible violations in the application of the AML/CFT framework. It will also have the power to make non-binding recommendations.
The AMLA’s powers vis-à-vis the FIUs are intended to improve cooperation and coordination mechanisms among EU FIUs, as well as to foster the FIUs’ interaction with obliged entities. AMLA’s main expected role will therefore be to perform an effective centralised coordination activity between local FIUs, in order to resolve the current level of collaboration that has been found to be rather unsatisfactory. Moreover, there are high expectations that this new entity will be able to resolve the current divergences often encountered among the FIUs themselves in terms of autonomy, competences and instruments. The formal establishment of a central point is therefore intended to strengthen European coordination between FIUs and to further promote a typical FIU attitude, namely ‘active collaboration’.
Motivated by this objective, the Authority certainly does not start from a blank sheet of paper, as is well known, in fact, the FIUs already in 2006 organised themselves into an informal group for comparison and coordination that gave rise to the platform of EU FIUs chaired by the European Commission and officially recognised by the 4th AML Directive. This platform is used in particular for the development of forms and instruments of cooperation between FIUs, for the definition of criteria for the detection of cross-border suspicious transactions and for the promotion and coordination of joint analyses. It is also involved in the management of FIU.net, the communication infrastructure between EU FIUs. This platform will not be replaced by AMLA; on the contrary, it will continue to operate and produce supporting material, thanks also to the future standardisation of templates to be used for the exchange of information between units and to future developments in the available IT tools. In fact, AMLA will start working as an indirect European supervisor and coordinator of local FIUs as early as July 2025, while the role of direct supervisor will be assumed as of 2028.
2. Harmonising standards and other roles
While we have spoken of the role of coordinator between regulatory bodies, it is also important to emphasise, on the other hand, the role that the Authority will play in the process of regulatory harmonisation within the European Union. AMLA’s undoubtedly primary task will be to integrate the AML package and the EU regulations on AML/ CFT, by drawing up regulatory technical standards (RTS) and implementing technical standards (ITS), as well as issuing guidelines, opinions and orientations. Specifically, the AMLA will have to prepare drafts of RTS and ITS, some of which are rumoured to see the light as early as next February, and which will then have to be adopted by the European Commission in the form of delegated and implementing regulations. In this regard, the first guidelines are expected by 10 July 2026, when the first regulatory provisions of Regulation (EU) 2024/1624 (‘AML Regulation’) regarding access to the beneficial owner register will come into force.
There are then some other roles that, although not primary, are worth mentioning in order to have a clear view of the commitment that AMLA will have to put in place in order not to disappoint expectations. These certainly include: (i) the authority to organise training courses to raise awareness and manage the risks of money laundering and terrorist financing; (ii) the possibility of playing a mediating role between FIUs should problems of various kinds arise.
With particular reference to the latter, the expectation is that the Authority will be able to provide support and coordination in the joint thematic analysis of selected cross-border cases brought to its attention by the FIUs themselves, where refusal to participate will have to be justified. In addition, the Authority will be responsible for identifying topics for which it may be worthwhile to develop a consolidated and harmonised methodology that allows for the conduct of joint analyses among the FIUs. AMLA will also have the authority to conduct periodic assessments of the activities of the FIUs and to carry out peer reviews of the non-financial supervisors, to ensure convergence and high-quality supervision. It will also have the power to require national non-financial supervisory authorities to ensure compliance with money laundering and terrorist financing prevention requirements within their area of competence, as well as to investigate any potential violations by those authorities.
It is important to specify that the AMLA will not have operational tasks (e.g. it will not receive or analyse STRs) and will not replace the local FIUs, which will retain the handling of STRs and direct contact with reporters. The AMLA will in any case play an important role in the management of SOS, as it will have to establish standard formats for reporting by obliged parties and for the transmission of transaction records. It will also issue transversal anomaly indicators, without prejudice to the possibility for the individual local FIU to adopt a higher number.
Finally, the AMLA will be a high-level centre of expertise with powers also in the field of cross-border sanctions, which is not the prerogative of local FIUs, and it will have political weight on the international scene, hopefully acting as a push to overcome the shortcomings of some States on the international scene.
3. Bodies, functions and structures of AMLA
The governance of AMLA will consist of two collegial bodies: the Executive Committee (i.e. Executive Board) and the General Board (i.e. General Board).
The Executive Board, in particular, will consist of the Chairman and five full-time independent members, including the Vice-Chairman. This body will play executive roles and take decisions vis-à-vis individual obliged parties or supervisory authorities. It will also take decisions on the draft budget and other matters relating to AMLA’s operations and functioning.
The General Council will consist of two components: a supervisory one, with representatives of the public authorities responsible for AML supervision (one voting representative per Member State); another one dedicated to the FIUs, which will be attended by the heads of the individual units of all EU Member States. A non-voting representative of the European Commission will also be present. Non-voting observers will also be sent by the European Central Bank, the three European Supervisory Authorities (i.e. EBA, EIOPA, ESMA), the European Anti-Fraud Office (i.e. OLAF), Europol, Eurojust and the European Public Prosecutor’s Office (i.e. EPPO).
Finally, a standing committee (i.e. Standing Committee) will be established, a restricted body that will act as a filter between the Executive Committee and the FIUs.
In terms of tasks and powers, the General Council will be responsible for the adoption of all regulatory instruments. In addition, in its role as supervisor, it will provide opinions on decisions – relating to directly supervised obliged entities – drafted by a joint, restricted supervisory group, prior to final adoption by the Executive Committee.
At the top of the new Authority will be appointed a President (i.e. Chair), who will preside over the two governing bodies and participate in the meetings and working groups. An Executive Director (i.e., Executive Director) will also be appointed for the day-to-day management of AMLA, the preparation and implementation of the annual work programme, and budget estimation and management.
Finally, as far as the financing of AMLA is concerned, approximately 30% of the budget will be made up of budgets provided by the European Union, while the remaining 70% will come from fees paid by the financial sector, calculated according to a methodology that will take into account direct supervision, the risk profile of the obligor, and its turnover. It should be noted that credit and financial institutions that will not be subject to direct supervision, as well as non-financial obligated entities, will not have to pay any fees.
4. Concluding remarks and next steps
In order to initiate and coordinate the preparatory steps for the establishment of the new Authority, a dedicated task force has been set up, which will also ensure the adoption of the first decisions and actions, such as the recruitment of administrative and operational staff or the management of the budget. Between the end of 2024 and the beginning of 2025, it is planned to appoint the President of the AMLA, who will publicly and legally represent the Authority.
The AMLA will start its operation in the summer of 2025 and the first consultations on the implementing rules will be held during 2026. On the other hand, the selection of the 40 groups or entities that will be subject to direct supervision is scheduled to take place during the course of 2027, so as to ensure the start of direct supervision and full operation with the advent of 2028.
The expectation is that the establishment of the new Authority will bring a breath of fresh air for the operators targeted by the AML regulations, as well as, of course, for the FIUs. The same sizing that is currently underway for the operational staff of the Authority, from the indiscretions received, suggests a strong and focused garrison for every single intermediary that is part of the panel of 40 groups and subjects. In the face of such a commitment, it is expected that AML/ CFT recipients and traders will have to organise themselves in good time to cope adequately with the expected impact. To this end, the establishment of an ad-hoc presidium might be appropriate, in order not to risk being caught unawares and to be able to keep up with the news.
In this regard, it is interesting to note that the anti-money laundering function experienced in its first two or three five years following its establishment. It is now possible to hypothesise for the near future, and perhaps we could say hope for, a return to dimensional, as well as technological, reinforcement in order to better cope with the regulatory ‘tsunami’ just around the corner.
