New EU Anti-Money Laundering Agency Framework Comes Into Effect

Today marks the enforcement of the regulation establishing the European Union’s new Anti-Money Laundering Authority (AMLA). Until the end of 2025, the European Banking Authority (EBA) will continue as the primary authority overseeing anti-money laundering (AML) efforts, before transferring its responsibilities to AMLA.

With the new EU framework legally in effect, AMLA will soon take over the primary oversight of the sector from the EBA. “The EBA is proud to be paving the way for the establishment of AMLA and is committed to facilitating a smooth transition, and making the EU a hostile place for financial crime,” the EBA announced.

Since 2020, the EBA has been at the forefront of leading, coordinating, and monitoring the EU financial sector's fight against money laundering (ML) and terrorist financing (TF). The EBA emphasized that the new legislative framework "marks a significant step forward in the EU’s fight against financial crime.”

The new rules will create a harmonized and single AML/CFT rulebook, paving the way for the establishment of AMLA, the EU’s dedicated anti-money laundering authority. “The EBA will retain its AML/CFT powers and mandates until December 2025 to minimize disruption and provide continuity, and it will also continue working closely with AMLA going forward,” the EBA added.

Post-transition, the EBA will remain responsible for addressing ML/TF risk within its prudential remit. Until the end of 2025, the EBA will focus on several key priorities in the AML/CFT area. These include developing a methodology for selecting financial institutions for direct EU-level AML/CFT supervision, developing a common risk assessment methodology, compiling information necessary to carry out customer due diligence, and establishing criteria to determine the seriousness of AML/CFT provision breaches. The EBA is scheduled to present a report on these issues to the European Commission in October 2025.

During the transition phase, the EBA will support national competent authorities in preparing for AMLA and will coordinate with the European Commission’s AMLA taskforce, which is responsible for the establishment and initial operations of AMLA.

German Finance Minister Christian Lindner, who advocated for AMLA to be based in Frankfurt, home to the European Central Bank and the EU’s insurance supervisor, welcomed the enactment of the new framework. Lindner stated, “Honest citizens and honest business people are hurt when clans and mafia … are able to launder money on a grand scale.”

AMLA has already posted its first job opening for the position of chair (CEO/DG). Candidates have until July 8 to apply for the head position at the Frankfurt-based agency, which is expected to employ about 430 people and open next year. The European Commission aims to shortlist at least two candidates, with a final selection by the beginning of 2025. AMLA plans to post additional positions for legal officers and experts starting in December.

By fLEXI tEAM