AMLA (The Authority for Anti-Money Laundering and Countering the Financing of Terrorism) is the EU's new authority that brings national regulators together to ensure everyone follows the same rules consistently across Europe. This approach aims to close regulatory gaps that fraudsters have historically exploited across different jurisdictions.

The role of AMLA in modern financial compliance 

The authority will serve as the EU's primary anti-money laundering supervisor, directly overseeing high-risk financial institutions and coordinating with national authorities. It can conduct inspections, impose sanctions, and ensure consistent application of anti-money laundering regulations across all member states. 

Unlike the current system where national supervisors operate independently, AMLA will work under harmonised framework that eliminates regulatory arbitrage. Financial institutions are expected to follow more harmonised rules, while fraudsters face a stronger, coordinated crackdown. 

Key responsibilities of AMLA 

AMLA's mandate encompasses several critical areas of anti-money laundering supervision: 

Direct supervision of high-risk entities  

AMLA will directly supervise approximately 40 of the EU's highest-risk financial institutions, including major banks and payment service providers. These institutions will report directly to AMLA rather than their national supervisors, ensuring consistent oversight of systemically important players. 

Coordination with national authorities  

For institutions not under direct supervision, AMLA will coordinate with national competent authorities to ensure consistent application of anti-money laundering regulations. This includes providing guidance, conducting joint inspections, and reviewing supervisory decisions. 

Regulatory harmonisation  

The authority will create clear, uniform standards for anti-money laundering rules across all EU countries. This aims to reduce compliance complexity for cross-border institutions whilst strengthening overall system integrity. 

Information sharing and intelligence  

The organisation will help EU countries share information on high risk clients under strict conditions, creating a clearer picture of financial crime risks and better prevention. 

How AMLA will impact financial institutions

The establishment of AMLA will bring both challenges and opportunities for financial institutions operating in the EU. 

Enhanced compliance requirements 

Institutions under AMLA's direct supervision will face more intensive oversight, including regular on-site inspections and detailed reporting requirements. However, this comes with the benefit of direct access to supervisory guidance.

Streamlined cross-border operations  

Banks operating across Europe will benefit from unified requirements, omitting the need of managing different rules in each country. 

Technology and innovation focus  

The authority will encourage use of AI and machine learning to improve transaction monitoring and risk assessment capabilities.

AMLA's relationship with existing frameworks 

AMLA will work alongside existing EU financial supervisory authorities, including the European Banking Authority (EBA), national competent authorities and local FIUs. AMLA will not replace these bodies. Instead, it will focus on anti-money laundering and it will support broader supervision. 

The authority will work closely with international groups like the Financial Action Task Force (FATF). This will help ensure EU standards match global best practices. They will also address specific regional risks and challenges. 

Getting ready for AMLA 

AMLA's headquarters are already open in Frankfurt, with full operations expected by 2028. But most new anti-money laundering regulations kick in on July 10th, 2027, so institutions need to start preparing now. 

Review your current compliance setup and spot any gaps against AMLA's expected requirements. Invest in technology that can handle enhanced reporting and transaction monitoring. Consider how AMLA's unified approach will change your risk assessments and whether your systems can adapt to standardized requirements across Europe. 

AMLA compliance FAQs

When will AMLA become operational? 

AMLA will start its supervision from 2028 onward, following the completion of necessary legislative processes and institutional setup. Financial institutions should use this preparation period to align their systems and processes with expected requirements when final technical standards are published. 

Which institutions will be directly supervised by AMLA? 

AMLA will directly supervise approximately 40 high-risk financial institutions across the EU, selected based on factors such as size, cross-border activity, and risk profile. Other institutions will remain under national supervision but subject to AMLA's coordination and oversight. 

What is the difference between AMLA and AMLR? 

AMLA (Anti-Money Laundering Authority) is the new EU supervisory body that will oversee compliance and enforcement, while AMLR (Anti-Money Laundering Regulation) refers to the actual rules and requirements that financial institutions must follow.