EBA Hands Over AML/CFT Mandate to AMLA

The European Banking Authority (EBA) has formally passed its Anti-Money Laundering and Financing Terrorism (AML/CFT) requirements to the new European Anti-Money Laundering Authority (AMLA).

This action is congruent with the role of the European Union (EU) to centralize compliance with AML/CFT in one single body. To reinforce its defences against financial crime, as well as to have a Single Rulebook on AML/CFT, the EU is radically transforming how it combats financial crime.

Key Tools Transferred:

By the 1 st of January 2026, the EBA shall have entirely handed over important tools to the AMLA, which are:

• The EuReCa Database: A vital database that has data on the weaknesses of single financial institutions in their materials and remedies to the identified weaknesses.
• Supervisory Insights: Data that assists the financial authorities in EU Member States in detecting threats.

These are operations that will now fall under the exclusive supervision of the AMLA. All the current AML/CFT guidelines given by EBA will, however, remain valid to maintain regulatory continuity until the AMLA gives further guidelines.

The Single Rulebook: EU AML Regulation (AMLR):

Along with the shift in the responsibility, the EU AML Regulation (AMLR), which is enacted in 2024, introduces a Single Rulebook of AML/CFT initiatives. This new framework, which will come into force in July 2027, will harmonize compliance in the EU.

The Single Rulebook is also meant to facilitate the harmonized implementation of AML/CFT across the EU, where all the financial institutions in the EU are to be maintained to the same standard. This measure will go a long way in stopping the threat of money laundering and terrorist financing in the EU.

The AMLA will fill in the single rulebook of the EU regarding standardizing compliance.

The Expanded Role and Time of AMLA.

Under this reorganization, Anti-Money Laundering Authority (AMLA) will be given direct authority over approximately 40 large financial undertakings within the EU as early as January 2028. According to the EBA, within the AMLR framework of the Single Rulebook, the AMLA will.

Finish the Single Rulebook of the EU, further convergence in supervision, and coordinate the efforts of the FIUs in order to promote cross-border exchange of financial institutions or groups within the EU.

The strengthened mandate of AMLA is accompanied by a clear purpose that will be the achievement of better supervision, enforcement, and coordination throughout the EU.

The shift falls under the larger plans of the EU to make the financial ecosystem more resilient, capable of responding in a quick time to any emerging risks, and also to make sure that financial crimes are identified and addressed in quick and decisive action.

The fact that the EU is officially handing over to more clearly indicates that the organization is going the extra mile with its AML/CFT initiatives. Since July 2027, all AML/CFT provisions in the EU will be covered by a single framework that would provide a more effective and consistent EU response to financial crime.