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EU Moves Toward Centralized Financial Crime Oversight as AMLA Targets Cross-Border Money Laundering and Crypto Risks.
The European Union's Anti-Money Laundering Authority, also known as AMLA, is expected to be fully functional by 2028, thereby enhancing the European Union's efforts to combat cross-border money laundering risks and terrorist financing. The European Union's new watchdog, which will be based in Frankfurt, is expected to address loopholes in regulating money that have previously led to involvement in money laundering as well as other financial crimes.
Under its 2026-2028 implementation plan, AMLA will directly supervise 40 high-risk EU financial institutions, thereby launching the first centralized system of EU anti-money laundering supervisory authorities. Under this plan, AMLA will complete its risk assessment methodology for AML risk in 2026 and initiate the selection process for supervised institutions from 2027. The authority has recruited 120 staff members, moving towards its target of 432 employees.
“AMLA marks a new chapter in Europe’s fight against money laundering and terrorist financing,” AMLA Chair Bruna Szego declared, emphasizing a move from fragmented national enforcement towards a unified risk-based AML system. During its first meeting, crypto-asset supervision was raised as a new challenge by board member Derville Rowland, who cautioned that due to technological innovations and the secrecy arrangements of crypto-assets, money laundering risks are significantly heightened.
The European Union first proposed the creation of AMLA in 2021 following a string of money laundering scandals in European banks. The emergence and growth of cryptocurrency and innovative forms of payments have encouraged money laundering, requiring stronger regulation. Money laundering syndicates are estimated to have received more than $82 billion in cryptocurrencies in one year.
As AMLA moves towards its eventual full operational capability, it is expected that it will have a key role to play in shaping EU AML regulations, crypto compliance regulations, and enforcement actions. Guidance on supervision priorities is expected to be available before 2028 when AMLA launches.
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