Anti-Money Laundering Authority (AMLA)

For years, EU countries enforced anti-money laundering rules in different ways. High-profile scandals like Danske Bank, Wirecard, and ABLV Bank exposed the depth of these supervisory gaps. These inconsistencies created weak compliance, poor coordination, and loopholes that criminals could exploit, and EU needed a single authority to close those cracks.

AMLA was formed to bring a consistent, accountable, and stronger framework to AML supervision. By setting uniform standards and overseeing high-risk institutions, AMLA ensures member states work together under one robust system.

What is AMLA?

Anti-Money Laundering Authority, or AMLA, is the new European Union single authority for enforcing the anti-money laundering and anti-terrorist financing obligations. The authority was proposed in the 2021 AML legislative proposal to cover existing gaps in EU-level supervision.

The AMLA was formally created in law in 2024 and is based in Frankfurt. It is expected to begin operations in summer 2025 and be fully operational by 2028.

How does AMLA work?

Once AMLA is fully operational, it will take on a direct supervisory role over high-risk credit institutions. This will help national authorities to coordinate better. Also, this will represent a shift from reactive enforcement to more active and consistent EU-wide supervision.

What are the AMLA’s role and Responsibilities?

AMLA’s most important tasks will be to:

• Directly supervises high-risk financial institutions operating across borders and indirectly oversees other financial and non-financial entities.
• Support and coordinate FIUs through joint case reviews, secure data sharing, advanced analysis, and management of the FIU system.

• Develop regulatory and technical standards, and issue guidelines to strengthen EU AML/CFT legislation.

What is AMLA’s Role in Money Laundering Prevention?

AMLA helps prevent money laundering in the EU by supervising high-risk institutions. It supports national regulators in enforcement and ensures rules are applied consistently.

The authority aligns AML frameworks across the EU and improves information sharing between authorities. It also oversees Ultimate Beneficial Owner (UBO) registers, setting common standards to close regulatory gaps.

What are the AMLA Frameworks?

The Anti-Money Laundering Authority (AMLA) is based on the three primary EU legislations which shape its mandate and scope. Together, these measures form the legal foundation of AMLA’s framework.

• AMLA Regulation (Regulation (EU) 2024/1620): This regulation was formally created under

the Anti-Money Laundering Authority (AMLA) as an EU institution. It sets out its governance structure, decision-making powers, and how it will cooperate with national supervisors.

• Anti-Money Laundering Regulation (AMLR – Regulation (EU) 2024/1624): This rule

applies to all EU member states. It aims to prevent the misuse of the financial system for money laundering and terrorist financing. AMLA is responsible for ensuring compliance with these rules across the Union.

• Sixth Anti-Money Laundering Directive (AMLD6): This directive supports the above

regulations by harmonizing their criminal law elements. It defines money laundering and sets minimum sanctions. It also introduces standards on the liability of legal persons to ensure consistent enforcement across the EU.

What are AMLA Laws and Regulations?

Under this framework, AMLA defines legal powers that give it more than just an advisory role. Under the AMLA Regulation and the AMLR, the authority can:

• Supervise high-risk or systemically important cross-border financial institutions in the EU.
• Fill gaps where national supervisors are unable, so no gap in regulation exists.
• Impose fines and take binding enforcement action against rule-breaking institutions.
• Work with national Financial Intelligence Units (FIUs) to improve information sharing and align practices.
• Develop technical regulatory standards and compliance methods for all EU member states.

What Are AMLA’s Compliance Requirements?

Although AMLA’s official guidelines are still in development, several core expectations are already clear.

Institutions will be required to follow harmonized risk assessment practices, maintain transparent reporting, cooperate fully with relevant authorities, and adopt proactive governance measures to prevent and address financial crime.

AMLA Enforcement:

For ensuring effective and equitable enforcement, AMLA will implement a risk-based approach in line with the nature of each institution. The authority will develop and maintain a comprehensive UBO database to enhance transparency of ownership structures. This increased transparency will help identify concealed control and prevent misuse.

These measures will strengthen how firms manage AML risks and limit opportunities for illicit activities through corporate entities.

What will AMLA mean for Financial Institutions?

From 2028, AMLA will implement direct supervision on around 40 high-risk financial institutions with multiple operations across multiple EU member states. The number of these institutions will rise as the authority expands its reach. These institutions will face more data-driven scrutiny to ensure compliance with EU-wide AML/CFT standards.

How AMLA Will Work with Other EU Bodies

AMLA will cooperate closely with other EU institutions to better combat money laundering and terrorist financing, which entails:

• Sharing information and coordinating action with the European Banking Authority (EBA), European Securities and Markets Authority (ESMA), and European Insurance and Occupational Pensions Authority (EIOPA).
• Cooperating closely with the European Public Prosecutor’s Office (EPPO) and Europol in investigations and enforcement.
• In line with the European Central Bank (ECB), especially when supervising large cross-border banks.
• Financing national Financial Intelligence Units (FIUs) in a manner that enhances data-sharing and convergence.

This combined system ensures that AML measures are aligned, overlaps in regulation are eliminated, and vulnerabilities are tackled across sectors and borders.