An anti-money laundering authority (AMLA) will be created in the European Union, which will play the role of a ‘centre’ of the updated regulatory framework involving national authorities. The plans are contained in the European Commission’s proposal, Reuters reports.
The document is expected to be presented on 20 July after final refinements. If approved by EU members, AMLA will be launched by 2026.
The project notes that money laundering, terrorist financing and organised crime remain serious problems to be addressed at EU level.
AMLA will have powers to supervise and take decisions on entities deemed suspicious from an AML/CFT perspective. The Agency will assume the powers of the European Banking Authority, which lacks enforcement powers.
«The new agency will also coordinate among national authorities with similar profiles and enhance effectiveness in complying with uniform rules and standards, approaches and risk assessment methodologies» — the project says.
«The lack of such rules leaves cryptocurrency holders exposed to money-laundering and terrorist-financing risks, since criminals’ money can flow through transfers of digital assets» — the document notes.
The EU has several weak jurisdictions that act as gateways for illicit money into the EU banking system. These include Austria, the Baltic states, Cyprus, Luxembourg and Malta. At the same time, banks in other countries have faced money-laundering scandals as well, including Danske Bank, noted by EUobserver.
In December 2020, Spanish police together with Europol arrested suspects in money laundering for the ‘Russian mafia’. During searches, law enforcement also found cryptocurrency wallets.
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