The EU recently adopted a legislative package to strengthen the fight against money laundering and terrorist financing at European level. An important part of the EU’s anti-money laundering package is the establishment of the Anti-Money Laundering Authority (AMLA).
The aim of this new EU authority is to facilitate the detection of suspicious financial transactions and activities and to close loopholes that criminals use to launder the proceeds of crime through the financial system or to finance terrorist activities.
The most important things in 30 seconds
- The AMLA is a new and independent supervisory authority at EU level that aims to strengthen the fight against money laundering and terrorist financing in the EU.
- The AMLA is based in Frankfurt am Main and will start operations in 2024, with full capacity expected in 2027.
- From 1st of January 2028, the AMLA will directly supervise up to 40 financial institutions with the highest risk of money laundering or terrorist financing.
- In the event of violations, the AMLA will be entitled to impose fines and periodic penalty payments.
An important step in the fight against money laundering
The AMLA is an independent supervisory authority at EU level that plays a central role in the fight against money laundering and terrorist financing. In order to carry out its tasks effectively, the Anti-Money Laundering Authority will be equipped with the following tasks, functions and powers:
“With the AMLA, an EU authority will take on a central role in the European anti-money laundering supervision for the first time. This is an important step for the further development of the fight against money laundering in the EU.”
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Contact our experts to prepare for the AMLA in the best possible way and stay up to date on the latest developments at all times.
The AMLA will directly supervise up to 40 financial institutions
The AMLA primarily supervises companies from the financial sector: the new authority will directly supervise up to 40 financial institutions with the highest risk of money laundering or terrorist financing. The selection of these institutions is to be based on a combination of objective criteria. This includes, in particular, whether an institution operates across borders and has a high proportion of transactions with third countries. The first list of companies subject to direct supervision will be published by AMLA in the course of 2027.
Companies from the financial sector that have not been selected as high-risk obliged entities by AMLA will continue to be subject to supervision by BaFin. However, there may also be changes in supervisory practice for this group of institutions: We assume that AMLA will issue requirements in order to harmonise supervisory methods. In addition, there will be new guidance packages that all financial institutions will have to implement.
Not only companies from the financial sector affected
Non-financial companies will continue to be supervised by the relevant national supervisory authorities. This means that there will be no direct supervision by AMLA. However, AMLA will supervise national supervisory authorities and coordinate supervisory practices.
In exceptional cases, the AMLA can therefore supervise any company if it does not sufficiently or promptly implement the requirements of the national supervisory authority. The AMLA will also be able to issue instructions to national authorities to supervise certain companies if national supervision is ineffective.
“In cooperation with the national anti-money laundering authorities and the financial investigation authorities, the AMLA forms a robust supervisory system that strengthens the effectiveness and efficiency of anti-money laundering efforts in Europe.”
How to prepare for AMLA’s new supervisory practice
- FinCrime Readiness and Impact Checks
- FinCrime Risk Assessment
- FinCrime Monitoring and Screening
- FinCrime Managed Services
- FinCrime Investigations, Remediations and Monitorships Support
- FinCrime Governance Models and Controls
- FinCrime training courses
FinCrime Readiness and Impact Checks
We support you in analysing your status quo regarding the current EU AML Regulation and future guidelines and deriving appropriate measures for optimisation.
FinCrime Risk Assessment
We optimise the methodology of your risk analysis in order to fully comply with EU regulatory regulations and to be able to react flexibly to future innovations.
FinCrime Monitoring and Screening
The AMLA will issue technical standards that will be relevant for monitoring and screening. We advise you holistically and independently on the optimisation of existing tools and the use of the latest technologies.
FinCrime Managed Services
We support you with staff-trained experts for repetitive activities, for example in the area of “Know Your Customer”, to relieve your expert teams. This allows you to concentrate on your core technical processes and the new AMLA requirements.
FinCrime Investigations, Remediations and Monitorships Support
We support you in monitorships and direct supervision by the AMLA and, if necessary, subsequent remediations. If necessary, we can also initiate targeted investigations to thoroughly investigate suspected cases.
FinCrime Governance Models and Controls
An agile AML governance model is required to keep pace with the constantly changing requirements at national and European level. We help you to optimise your operating model.
FinCrime training courses
We support you in the preparation and implementation of training courses on all aspects of money laundering prevention.
Interview on the use of new technologies in the fight against financial crime
For PwC expert Lars-Heiko Kruse, the EU’s AML package (“Anti-Money Laundering Package”) is an effective step in the fight against money laundering and terrorist financing. In this interview, he explains which aspects of the legislative package fall short for him and how digital tools can be used to combat financial crime.
Contact us
Partner, Financial Services Governance, Risk & Compliance, PwC Germany
Tel: +49 170 5473450
Saskia Isabell Platte
Senior Manager, Forensic Services, FinCrime, PwC Germany
Tel: +49 1511 9113414
Frank Fischer
Senior Manager, Financial Services Governance, Risk & Compliance, PwC Germany
Tel: +49 175 2904801