EU sets up new authority to combat money laundering

The European Parliament and EU Council reached provisional agreement Wednesday to create a new European authority for countering money laundering and financing of terrorism (AMLA). The creation of the new authority is expected to transform AML/CFT supervision in the EU and enhance cooperation among Financial Intelligence Units (FIUs).

AMLA will be the central authority coordinating national authorities to ensure the correct and consistent application of EU rules. In the financial sector, the Authority will directly supervise those financial sector entities exposed to the highest risk of money laundering and terrorism financing. AMLA will also support FIUs to improve their analytical capacity around illicit flows and make financial intelligence a key source for law enforcement agencies.

The Authority will facilitate cooperation between FIUs, including by establishing standards for reporting and information exchange, supporting joint operational analyses, and by hosting the central online system, FIU.net. Still under discussion as part of the AML legislative package are a new Regulation establishing a single rulebook for AML/CFT, and a new AML/CFT Directive.

Source: EUbusiness