By PAUL O’DONOGHUE, Senior Correspondent
THE regulation that sets up the European Union’s new agency to combat money laundering went into force today (Wednesday).
The European Banking Authority (EBA) however will continue in its role as the key authority policing money laundering before transferring its powers and resources to AMLA by the end of 2025.
The new EU framework which comes into legal effect today will allow for the EU’s new Anti-Money Laundering Authority (AMLA) to take over primary oversight of the sector from the EBA.
“The EBA is proud to be paving the way for the establishment of AMLA and is committed to facilitating a smooth transition, and making the EU a hostile place for financial crime,” the organisation said today.
Since 2020, the EBA said it has been “leading, coordinating and monitoring” the EU financial sector’s fight against money laundering (ML) and terrorist financing (TF). The EBA said the new legislative framework “marks a significant step forward in the EU’s fight against financial crime”.
The rules will create a harmonised and single AML/CFT rulebook and allow for the establishment of AMLA, the EU’s new dedicated anti-money laundering authority.
“The EBA will retain its AML/CFT powers and mandates until December 2025 to minimise disruption and provide continuity, and it will also continue working closely with AMLA going forward,” the EBA said.
“In particular, after transferring the powers that are specific to AML/CFT to AMLA, the EBA will remain responsible for addressing ML/TF risk across its prudential remit.”
The EBA has identified several key priorities in the area of AML/CFT it will focus on until the end of 2025. These will be:
- Developing a methodology for selecting financial institutions for direct EU-level AML/CFT supervision.
- Developing a common risk assessment methodology.
- Compiling information necessary to carry out customer due diligence.
- Establishing criteria to determine the seriousness of a breach of AML/CFT provisions.
The EBA will then be due to provide a report to the European Commission on these issues in October 2025.
“Throughout the transition phase, the EBA will also support national competent authorities getting ready for AMLA and will coordinate with the European Commission’s AMLA taskforce, which will be responsible for the establishment and initial operations of AMLA,” the EBA said.
German Finance Minister Christian Lindner who lobbied for the AMLA to be based in Frankfurt – already home to the European Central Bank and the EU’s insurance supervisor – welcomed today’s legal enacted of the new framework.
Lindner said it marked an important step in fighting money laundering. “Honest citizens and honest business people are hurt when clans and mafia … are able to launder money on a grand scale,” he said.
AMLA has already advertised has its first job posting, the position of chair (CEO/DG).
Candidates have until July 8 to apply to head the Frankfurt-based agency that expects to employ about 430 people and is set to open next year. The European Commission aims to identify a shortlist of at least two candidates, with a final selection by the beginning of 2025.
AMLA plans to post other jobs for legal officers and experts from December.
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