Europe's Search for Anti-Money Laundering Authority Chair Begins Amid Speculation and Preparation

The search for the Chair of Europe’s new Anti-Money Laundering Authority (AMLA) is set to commence this autumn, according to sources at AML Intelligence. EU authorities plan to announce the role in September, marking the official start of the recruitment process for AMLA’s leader.

With the launch of AMLA imminent, speculation is rife regarding potential candidates for this influential position. Given the significant influence wielded by major EU countries, particularly France and Spain, it is speculated that candidates from these nations are most likely to be considered. Notably, it is unlikely that a German candidate will be chosen, as the Authority's headquarters will be located in Frankfurt.

“There are a few names floating around already. It remains to be seen who goes for the job however. Obviously it will have to be somebody that all three powerful groups in the EU agree on. So the candidate will have to get the nod of the European Commission, the Council (national governments) and the parliament,” explained a source familiar with Brussels politics.

As the public face of AMLA, the Chair will play a pivotal role in shaping the culture and enforcement strategies within the Anti-Financial Crime (AFC) sector across the Union. The selection process is anticipated to involve significant political maneuvering, with countries vying to promote their preferred candidates.

“The Authority will have at least 430 staff members over a horizon of 4 years. Of these, over 200 will work on direct supervision of certain obliged entities,” as estimated by the European Commission.

The establishment of AMLA will involve the formation of two governing bodies: the Executive Board and the General Board. The Executive Board, headed by the Chair, will be responsible for making decisions concerning individual obliged entities or supervisory authorities. Meanwhile, the General Board will adopt regulatory instruments and oversee the Authority's operations.

Planning and logistical preparations for AMLA's rollout are being spearheaded by a special Task Force within the European Commission's Directorate-General for Financial Stability, Financial Services, and Capital Markets Union (DG FISMA), led by Olivier Sallas.

Upon reaching full staffing, AMLA's funding will be sourced from both the EU budget and financial contributions from various obliged entities within the financial sector. Non-financial entities and those not meeting the criteria for direct supervision will be exempt from financial contributions.

The establishment of AMLA is slated to commence in the coming months, with activities expected to begin in mid-2025 and full staffing anticipated by 2027. Direct supervision of certain high-risk financial entities is projected to commence in 2028, contingent upon the completion and implementation of a harmonized rulebook.

By fLEXI tEAM