For anybody working in KYC and AML, staying up-to-date with regulatory changes is vital. One significant change set to impact players in Europe is the establishment of the Anti-Money Laundering Authority of the European Union (AMLA EU).
03 April 2023
Raphael Wullschleger, CTO Atfinity
Preparing for AMLA EU:
What KYC and AML professionals need to know about it today
For anybody working in KYC and AML, staying up-to-date with regulatory changes is vital. One significant change set to impact players in Europe is the establishment of the Anti-Money Laundering Authority of the European Union (AMLA EU). This initiative aims to harmonise AML efforts across Member States, ensuring consistency and uniformity in anti-money laundering practices throughout the European Union. In this short blog post, I will explore what AMLA EU is and analyse its current and future implications and regulations.
What is AMLA EU?
The idea to establish a common EU AML authority was sparked by the identified weaknesses in the AML framework in the European Union. These weaknesses created cross-border opportunities for criminals to exploit the EU financial system. AMLA EU's primary mission is therefore to set a coherent framework for AML authorities of the EU’s members and harmonising the fight against money laundering and terrorism financing. It has several objectives, such as ensuring effective implementation of the existing EU AML framework, establishing an EU single rulebook, and bringing about EU-level supervision. The creation of AMLA EU is anticipated to provide a more coordinated and effective approach to combat financial crime in the region.
When will AMLA EU be operational?
AMLA EU is not expected to be fully operational before 2026. Before its launch, stakeholders will be consulted, expert opinions will be gathered, and an impact assessment will be conducted. Once operational the agency could be as large as 500 people strong with a budget of at least EUR 200 million, underlining the importance the EU places on AML. It will most likely be located in Vienna, Austria, however other European cities have also expressed interest.
Conclusion
In conclusion, creating the AMLA EU is a significant development in the fight against money laundering and terrorism financing in the EU. Consequences for KYC and AML will requirements in Europe are expected to arise in the mid-term. We should expect increased supervision and scrutiny in the years to come.
As soon as more details become available, Atfinity will update you!