Regulation (EU) 2024/1620 establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010

Summary:

Regulation (EU) 2024/1620 - adopted by the co-legislators on 31 May 2024 - establishing an Authority for Anti-Money Laundering and Countering the Financing of Terrorism - EU AML Authority (AMLA). It introduces amendments to Regulation (EU) No 1093/2010, Regulation (EU) No 1094/2010 and Regulation (EU) No 1095/2010. This is a text with EEA relevance.

Further information:

This Act establishes the Authority for Anti-Money Laundering and Countering the Financing of Terrorism - EU AML Authority (AMLA). It shall act within the powers conferred on it by this Regulation, and within the scope of several others Acts of EU legislation. It aims to protect the public interest, the stability and integrity of the European Union's (EU) financial system, and the proper functioning of the internal market by:

• preventing the use of EU;s financial system for the purposes of money laundering and terrorist financing;
• contributing to the identification and assessment of risks and threats across the internal market and from outside the EU;
• ensuring high-quality supervision in the area of anti-money laundering and countering the financing of terrorist across the internal market;
• contributing to supervisory convergence;
• contributing to the harmonisation of practices in the detection and suspicious transactions or activities by Financial Intelligence Units (FIUs);
• supporting and coordinating the exchange of information between FIUs, and between FIUs and competent authorities.

The draft law was adopted by the European Commission on 20 July 2021, as part of a legislative package focusing on anti-money laundering and countering the financing of terrorism. It delivered on the approach set out in two Communications - one seeking to inform European and national authorities on how to better address money laundering and terrorist financing risks (2019), and the other comprising an action plan for a common framework on preventing money laundering and terrorism financing (2020).

Representatives of the Member States agreed on a (partial) general approach to the proposal on behalf of the Council of the European Union on 29 June 2022. The plenary of the European Parliament endorsed a negotiating position on 17 April 2023. An informal agreement between the co-legislators on a compromise text for this file was reached on 12 December. This was formally endorsed by Parliament on 24 April 2024 and by the Council on 30 May. The co-legislators agreed on the location of AMLA's headquarters (Frankfurt) on 22 February 2024. The Act was signed by the co-legislators on 31 May 2024 and published in the Official Journal on 19 June 2024.

• Primary Source

Commentary and Analysis

Bruegel: Blog, 24/01/2020: A European anti-money laundering supervisor: From vision to legislation https://www.bruegel.org/blog-post/european-anti-money-laundering-supervisor-vision-legislation

ICIJ: FinCEN Files Investigation, 16/07/2021: EU to propose watchdog to tackle anti-money laundering failures exposed by FinCEN Files https://www.icij.org/investigations/fincen-files/eu-to-propose-watchdog-to-tackle-anti-money-laundering-failures-exposed-by-fincen-files/

Deloitte: Banking Alert, July 2021: EU plans to strip the EBA of all its money-laundering duties https://www2.deloitte.com/content/dam/Deloitte/ro/Documents/banking-alert-july-2021-eu-watchdog-aml.pdf

Transparency International: Press Release, 20/07/2021: Proposal to create EU Agency to supervise banks is a major step towards ending decades-long abuse https://www.transparency.org/en/press/european-union-anti-money-laundering-agency-supervise-banks-major-step-towards-ending-abuse

Organized Crime and Corruption Reporting Project (OCCRP), 22/07/2021: EU May Get Anti-Money Laundering Authority https://www.occrp.org/en/daily/14894-eu-may-get-anti-money-laundering-authority

KPMG: Insights, December 2023: EU Anti-Money Laundering Authority (AMLA): Approaching the finish line https://kpmg.com/xx/en/home/insights/2023/12/eu-anti-money-laundering-authority-amla-approaching-the-finish-line.html

Euronews, 26/01/2024: Which city will host the prized new anti-money laundering agency? https://www.euronews.com/business/2024/01/26/which-city-will-host-the-prized-new-anti-money-laundering-agency

Bird&Bird: Insights, 02/02/2024: EU: Political agreement reached to establish a new European Anti-Money Laundering Authority (AMLA) https://www.twobirds.com/en/insights/2024/global/political-agreement-reached-to-establish-a-new-european-anti-money-laundering-authority

Royal United Services Institute (RUSI): Commentary, 21/02/2024: The European Anti-Money Laundering Authority's Headquarters Dilemma https://www.rusi.org/explore-our-research/publications/commentary/european-anti-money-laundering-authoritys-headquarters-dilemma

Hogan Lovells: Knowledge Services, 23/02/2024: Frankfurt to host the EU Anti-Money Laundering Authority https://www.engage.hoganlovells.com/knowledgeservices/news/frankfurt-to-host-the-eu-anti-money-laundering-authority

European Movement (Ireland), 29/02/2024: The EU’s New Anti-Money Laundering Authority https://www.europeanmovement.ie/eu-new-anti-money-laundering-agency/

European Parliamentary Research Service (EPRS): Briefing, 20/03/2024: Anti-money-laundering authority (AMLA): Countering money laundering and the financing of terrorism https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)733645

Central Bank of Ireland: Press Release, 16/05/2024: Setting up the new EU Anti-Money Laundering Authority for success https://www.centralbank.ie/news/article/press-release-setting-up-the-new-eu-anti-money-laundering-authority-for-success-16-may-2024

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News

The Irish Times, 07/07/2021: EU plans new agency to fight money laundering https://www.irishtimes.com/business/economy/eu-plans-new-agency-to-fight-money-laundering-1.4614307

Politico, 07/07/2021: EU to bypass banking agency with new dirty-money watchdog https://www.politico.eu/article/eu-strips-european-banking-authority-anti-money-laundering-duties-new-watchdog-amla/

EurActiv, 08/07/2021: EU to propose Anti-Money Laundering Authority https://www.euractiv.com/section/economy-jobs/news/eu-to-propose-anti-money-laundering-authority/

EUObserver, 08/07/2021: EU to create anti-money laundering agency https://euobserver.com/democracy/152386

RTÉ News, 20/07/2021: EU to set up anti money-laundering agency https://www.rte.ie/news/business/2021/0720/1236262-eu-to-set-up-anti-money-laundering-agency/

Euronews, 20/07/2021: Brussels wants a new EU agency to tackle money laundering https://www.euronews.com/2021/07/20/brussels-wants-a-new-eu-agency-to-tackle-money-laundering

Reuters, 22/02/2024: EU's new Anti-Money Laundering Authority to be based in Frankfurt https://www.reuters.com/world/europe/eu-says-new-anti-money-laundering-authority-be-based-frankfurt-2024-02-22/

Politico, 22/02/2024: Frankfurt to host EU dirty money watchdog https://www.politico.eu/article/frankfurt-to-host-eu-dirty-money-watchdog-amla/

Deutsche Welle, 22/02/2024: Frankfurt to host new EU anti-money laundering agency https://p.dw.com/p/4cm4i

EurActiv, 23/02/2024: EU’s new Anti-Money Laundering Authority to be based in Frankfurt https://www.euractiv.com/section/justice-home-affairs/news/eus-new-anti-money-laundering-authority-to-be-based-in-frankfurt/

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Official

EUR-LEX: COM(2021)421: Proposal for a Regulation establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:421:FIN

EUR-LEX: SWD(2021)190: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:190:FIN

EUR-LEX: SWD(2021)191: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:191:FIN

Publications Office of the EU: EU Law Tracker: Proposal for a Regulation establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism https://law-tracker.europa.eu/procedure/2021_240?lang=en

European Parliament: Legislative Observatory: Procedure File for Proposal on Anti-Money Laundering Authority (AMLA) (2021/0240(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0240(COD)

European Parliament: Legislatuve Train Schedule: Establishing the Authority for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) and amending Regulations (EU) No 1093/2010, (EU) 1094/2010, (EU) 1095/2010 https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-eu-amlcft-supervision

European Commission: DG Financial Stability, Financial Services & Capital Markets Union: Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA) https://finance.ec.europa.eu/financial-crime/amla_en

German Federal Ministry of Finance: AMLA in Frankfurt https://www.amla-frankfurt.eu/amla/EN/Home/home.html

General Secretariat of the Council (EU): Policies: Fight against money laundering and terrorist financing in the EU https://www.consilium.europa.eu/en/policies/fight-against-terrorism/fight-against-terrorist-financing/

European Commission: Selection of the seat of the Anti-Money Laundering/Countering the Financing of Terrorism Authority (AMLA) https://commission.europa.eu/law/selection-seat-anti-money-launderingcountering-financing-terrorism-authority-amla_en#documents

European Commission: Press Release, 20/07/2021: Beating financial crime: Commission overhauls anti-money laundering and countering the financing of terrorism rules https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3690

European Commission: Questions and Answers: Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) (20 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_3689

EPP EP Group: Newsroom, 20/07/2021: Anti-Money Laundering: don't create new conflicts of competences https://www.eppgroup.eu/newsroom/news/money-laundering-don-t-create-new-conflicts-of-competences

Council of the European Union: Press Release, 29/06/2022: New EU Authority for Anti-money laundering: Council agrees its partial position https://www.consilium.europa.eu/en/press/press-releases/2022/06/29/new-eu-authority-for-anti-money-laundering-council-agrees-its-partial-position/

European Parliament: Press Release, 28/03/2023: New EU measures against money laundering and terrorist financing https://www.europarl.europa.eu/news/en/press-room/20230327IPR78511/

European Parliament: Press Release, 13/12/2023: Deal reached on the EU’s money-laundering watchdog AMLA https://www.europarl.europa.eu/news/en/press-room/20231207IPR15734/

Council of the European Union: Press Release, 13/12/2023: Anti-money laundering: Council and Parliament agree to create new authority https://www.consilium.europa.eu/en/press/press-releases/2023/12/13/anti-money-laundering-council-and-parliament-agree-to-create-new-authority/

European Parliament: Press Release, 24/01/2024: Anti-Money Laundering Agency: host city candidates to present their bids https://www.europarl.europa.eu/news/en/press-room/20240122IPR17037/

Renew Europe EP Group: Newsroom, 13/12/2023: Anti-Money Laundering Authority (AMLA): deal sets clear competences of the future agency, but negotiations on the seat are still ongoing https://www.reneweuropegroup.eu/news/2023-12-13/anti-money-laundering-authority-amla-deal-sets-clear-competences-of-the-future-agency-but-negotiations-on-the-seat-are-still-ongoing

European Commission: Intervention by Commissioner McGuinness at the beginning of the joint public hearings on the selection of the seat of the AML Authority (30 January 2024) https://ec.europa.eu/commission/presscorner/detail/en/speech_24_570

Council of the European Union: Press Release, 22/02/2024: Frankfurt to host the EU’s new anti-money laundering authority (AMLA) https://www.consilium.europa.eu/en/press/press-releases/2024/02/22/frankfurt-to-host-the-eus-new-anti-money-laundering-authority-amla/

European Parliament: Press Release, 22/02/2024: Frankfurt will be the home of the EU Anti-Money Laundering Authority https://www.europarl.europa.eu/news/en/press-room/20240219IPR17818/

European Commission: Press Release, 22/02/2024: Commission welcomes the selection of Frankfurt as the seat for the Authority for Anti-Money Laundering and Countering the Financing of Terrorism https://ec.europa.eu/commission/presscorner/detail/en/ip_24_972

European Parliament: Press Release, 24/04/2024: New EU rules to combat money-laundering adopted https://www.europarl.europa.eu/news/en/press-room/20240419IPR20586/

European Commission: Remarks by Commissioner McGuinness at the European Parliament plenary debate on Anti-Money Laundering (24 April 2024) https://ec.europa.eu/commission/presscorner/detail/en/speech_24_2289

Council of the European Union: Press Release, 30/05/2024: Anti-money laundering: Council adopts package of rules https://www.consilium.europa.eu/en/press/press-releases/2024/05/30/anti-money-laundering-council-adopts-package-of-rules/

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