The continuous battle of the European Commission against money laundering and terrorist financing within the EU has been widely known over the past years. In fact, back in May 2020, an Action Plan had been set in place for the proper implementation of the AML/CTF framework, by reinforcing the legal framework and by proposing back in July 2021 the introduction of a new authority for the assistance and supervision of Member States in such procedures.
On December 13th of 2023, the Commission approved the provisional agreement which was reach between the European Council and the European Parliament regarding the Commissions’ initial proposal for the establishment of an EU anti-money laundering and countering terrorism financing Authority, hereinafter referred to as AML/CFT in the form of a decentralized EU regulatory agency, hereinafter referred to as AMLA. The newly introduced authority shall coordinate and regulate the cooperation among Financial Intelligence Units (FIUs) and control the lawful and proper application of the EU rules. AMLA shall provide direct supervision over the national financial entities and assistance to FIUs for the enhancement of their analytical capacity in terms of illicit flows, prioritizing financial intelligence and cooperation among Member States, In terms of reporting and exchange of information, as well as joint operational analyses and the hosting of the central online system within the EU.
The AMLA legislative packaged proposed by the European Commission also contains a draft of a new Regulation on the functioning of the AML/CFT, as well as a new AML/CFT Directive, which are to this date under discussion. The procedure is expected to be finalized and AMLA to be formally established, once the agreement is officially adopted by the European Council and the European Parliament and its’ members. In addition, the domicile of the AMLA is still under discussions.
The present article is for informational purposes only and does not, under any circumstances, constitute legal advice. For further information on the subject, please contact our law firm and one of our attorneys shall be glad to assist you.
Nika Kalifatidou
Advocate – Legal Consultant
Arsen Theofanidis LLC