Frankfurt Becomes the Home to the New EU Anti-Money Laundering Authority

The European Union’s new Anti-Money Laundering Authority (AMLA) will be headquartered in Frankfurt, Germany.

 The Council of the European Union and European Parliament have agreed to establish the headquarters of the new European AMLA in Frankfurt, Germany. The AMLA will oversee the crypto sector to combat money laundering and counter-terrorist financing. 

Today, the EU and its member states decided to establish the EU anti-money laundering authority in Frankfurt. This is an important milestone, and we stand ready to work closely with AMLA to strengthen the fight against money laundering and terrorist financing across Europe. pic.twitter.com/nzkWUl8plY

— European Central Bank (@ecb) February 22, 2024

AMLA to Begin Operations in Mid-2025

Members of the Council of the European Union and the European Parliament agreed to base the headquarters of the new European authority for anti-money laundering and counter-terrorist financing in Frankfurt, Germany. 

The Anti-Money Laundering Authority (AMLA) will oversee the crypto industry and play a key role in combating illicit financial activities, money laundering and terrorist financing in the EU. According to a press release by the European Parliament, the AMLA regulation, once adopted, will take effect from July 2025 and is slated to have around 400 staff members, Reuters reports. 

Co-rapporteurs Emil Radev and Eva Maria Poptcheva are quoted saying:

“AMLA will be a game-changer in cracking down on dirty money in the EU. It will supervise the riskiest financial entities, oversee the non-financial sector, and play a crucial role in stopping evaders from circumventing targeted financial sanctions.

Now that Parliament has an equal say in choosing the agency’s seat, we have made the process more transparent with joint public hearings, and introduced specific selection criteria to ensure that the location enables the Authority to fully execute its tasks and powers. Congratulations to the winner, Frankfurt.” 

Eight other countries applied to host the AMLA, including Belgium, Ireland, Spain, France, Italy, Latvia, Lithuania, and Austria. 

Reforming EU Framework for Combatting Money-Laundering

According to the European Commission’s press release, the AMLA regulation is part of a three-legged legislative package to reform the European Union’s framework for combatting money laundering and terrorist financing, creating a single rulebook for all EU members. On February 18, Parliament and the Council agreed on the entire set of rules. The rules must now be formally adopted before they can enter into law, and Parliament will vote on its final approval in the plenary session of April 22 – 25. 

The location for the AMLA was established after the EU revised its “transfer of funds rules” to allow for crypto tracing. The Transfer of Funds regulation was introduced to reduce the anonymity of transferring cryptocurrencies such as Bitcoin. The regulation requires crypto operators to screen, record, and communicate information on the sender and receiver of cryptocurrencies to combat money laundering.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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