EU Aims To Create Anti-Money Laundering Authority

Following a series of scandals, the European Commission wants to create a new Anti-Money Laundering Authority (AMLA), the Financial Times reported Wednesday (July 7).

If the legislation goes forward the AMLA would set up operations in 2024 and gain the ability to supervise some cross-border financial companies and impose fines on firms that breach money-laundering rules in 2026.

“The legislative package represents the EU’s boldest attempt to tackle illicit finance in the wake of scandals across the bloc,” per the news outlet.

While suspicious transactions estimated in the range of hundreds of billions of euros happen each year within the European Union, the EC’s response is held back by inconsistent enforcement within member states, and a reluctance on the part of some countries to fully implement the anti-money-laundering directives already on the books.

The commission hopes to improve coordination between national agencies when it comes to money laundering and financial intelligence. The AMLA will oversee the “riskiest” financial sector companies operating in EU member states.

The plan needs the agreement of the European Parliament and member states. If approved, it would create an EU-wide anti-money laundering/anti-terrorism financing rule book, as well as new regulations governing crypto assets.

As the FT notes, money laundering is a significant problem for the EU. Europol estimates the value of suspicious transactions at 1.3 percent of GDP. And a report from the European Court of Auditors in June called for a stronger effort to combat money laundering, calling the current oversight network “fragmented and poorly coordinated.”