The European Union’s new Anti-Money Laundering Authority (AMLA) is set to establish its headquarters in Frankfurt, Germany, according to an announcement from the Belgian Presidency of the EU on Thursday. This decision is aimed at bolstering the bloc’s efforts to combat illicit financial activities.
Previously, the EU relied on national regulators to enforce anti-money laundering rules, but cooperation among member states was not always optimal. The establishment of AMLA is seen as a significant step towards centralizing efforts to combat money laundering and terrorism financing within the EU.
The authority, expected to commence operations in mid-2025, will have over 400 staff members and will focus on supervising financial entities deemed to be at high risk, as well as overseeing non-financial sectors. It aims to enhance efforts to prevent individuals from evading targeted financial sanctions.
European Parliament co-rapporteurs Emil Radev and Eva Maria Poptcheva emphasized the importance of AMLA in cracking down on illicit financial activities within the EU.
Mairead McGuinness, the European Commissioner for Financial Services, highlighted that the reform will broaden the scope of companies covered by anti-money laundering rules, including entities such as football clubs. Additionally, measures will be implemented to mitigate risks associated with cash payments exceeding 10,000 euros and to address concerns related to cryptocurrencies and their potential for enabling anonymity.
The selection of Frankfurt as the host city for AMLA marks the first time that the European Parliament and the Council have reached an agreement on a new EU agency’s location. Frankfurt emerged as the preferred choice among nine candidate countries, including Belgium, Ireland, Spain, France, Italy, Latvia, Lithuania, and Austria.
German officials welcomed the decision, with Finance Minister Christian Lindner and Chancellor Olaf Scholz expressing confidence that Frankfurt’s selection will enhance the city’s status as a financial hub in Europe.
The establishment of AMLA is part of a broader legislative package aimed at reforming the EU’s framework for combating money laundering and terrorist financing. The package, which has received provisional agreement from both the Parliament and the Council, is expected to undergo final approval by Parliament on April 22-25.
(Additional reporting by Thomas Escritt and Christian Kraemer in Germany; writing by Geert De Clercq and Charlotte Van Campenhout; editing by Alexandra Hudson, William Maclean)
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