AMLA: Transforming AML/CFT supervision

In 2021, the EU Commission presented a comprehensive legislative package to strengthen its Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) regime.

Amongst its provisions to create a single EU-wide rulebook and plans to enact the sixth Money Laundering Directive (6MLD), its most significant offering was the establishment of a new Anti-Money Laundering Authority (AMLA).

AMLA: Altering the landscape in combating money laundering

AMLA will transform AML/CFT supervision in the EU. In addition to adopting regulatory standards and implementing technical standards via a single EU rulebook, guidelines and recommendations to complete and clarify EU rules, facilitating cross-sectoral training programmes and establishing a central database of information collected from supervisors and other authorities, the Authority will have following powers and responsibilities:

Direct Supervision
Oversight and Coordination
Cooperation

Direct Supervision

It will have direct supervision over up to 40 entities that pose the highest risk of money laundering or terrorist financing, carried out by joint supervisory teams which will be led by AMLA in conjunction with national AML supervisors and will ensure their compliance with requirements, including those related to targeted financial sanctions, asset freezes and confiscations.

Oversight and Coordination

It will oversee and assist national AML/CFT supervisors of non-selected obliged entities in the financial sectors in ensuring compliance of their supervised entities with EU law. It will have oversight of the non-financial sector, carrying out peer reviews of the activities of non-financial supervisors and public authorities and will also have indirect supervision over non-obliged entities via national supervisors in the financial and non-financial sectors.

Cooperation

It will have ultimate responsibility for the effective and consistent cooperation between FIUs and will provide IT and AI services to enhance their analytical capabilities to encourage exchange of information amongst FIUs and with third countries.

AMLA will be empowered to enter into arrangements with supervisory authorities in third countries, leading the interaction between them and EU FIUs, with particular focus on where AMLA’s role concerns matters within the authority’s remit.

How we can help

We can help you prepare for upcoming operational changes through the roll out of the EU AML package and the operation of AMLA. We have established an AMLA working group to support you on operationalising the new regulations and associated changes required as a result of the establishment of AMLA. Use the "Contact us" section below to register your interest.

Assessing risk exposure
Reviewing AML documentation
Ensuring effective cooperation
Assessing technology infrastructure

Assessing risk exposure

You should assess your risk exposure to money laundering and terrorist financing, as well as to non-implementation and evasion of targeted financial sanctions, and take appropriate measures to mitigate those risks.

Reviewing AML documentation

Regardless of your potential direct supervision status by AMLA, you should ensure that your AML/CFT policies and procedures are aligned with the new single EU rulebook and reflect the latest risk assessments and guidance issued by AMLA and other authorities.

You must also ensure that your policies and procedures are effectively implemented and monitored across your group and across borders, and that you have adequate internal controls and reporting mechanisms in place to ensure proper governance ahead of the introduction of likely tougher AML regulatory standards.

Ensuring effective cooperation

You will continue to cooperate effectively with National Supervisors and FIUs now, and ensure cooperation with AMLA when it is established, by providing accurate and timely information, complying with their requests and instructions, and reporting any suspicious or unusual activities.

You should participate in the partnerships for information sharing in the field of AML/CFT and benefit from the exchange of best practices and insights with other obliged entities and authorities.