Introduction of AMLA Marks a New Era in EU AML Supervision
The launch of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) on July 1 represents a major milestone in the European Union’s fight against financial crime. As a decentralised agency, AMLA is tasked with coordinating national authorities to ensure consistent application of EU anti-money laundering (AML) and counter-terrorist financing (CFT) rules. This centralised approach aims to harmonise standards and improve oversight across member states.
Fleur De Roos, General Legal Counsel at Fourthline, provides key insights into what this development means for financial services firms. Her commentary sheds light on the operational shifts, strategic implications, and regulatory expectations that institutions will face as AMLA’s framework takes shape.
Centralisation and Harmonisation of AML Oversight
According to De Roos, AMLA represents a fundamental shift towards harmonised supervision in the EU. While it is a move toward centralisation, there will be a transitional period before AMLA assumes full supervisory powers in January 2028. During this time, national regulators will adapt their operations and align with the new centralised framework.
“This transitional phase will allow local regulators to reallocate resources while providing clarity to the market,” De Roos explained. The ultimate goal is a uniform supervisory environment that ensures consistency, efficiency, and effectiveness in AML enforcement.
Funding and Governance of AMLA
AMLA’s funding model is split between the entities it oversees and the EU budget. Seventy percent of its costs will be borne by supervised financial institutions, while the remaining 30% will come from the central EU budget. This structure ensures the agency’s independence while maintaining accountability to both the private and public sectors.
Leadership is another crucial component. AMLA’s success will hinge on the leadership of its chair, Bruna Szego, and executive director Nicolas Vasse, among others. Their ability to foster collaboration among national regulators will be key to achieving AMLA’s objectives.
Alignment with National Regulators
De Roos believes that national regulators like the UK’s Financial Conduct Authority (FCA) will be influenced by AMLA’s standards, especially through the work of European Supervisory Authorities such as the European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA), and the European Banking Authority (EBA).
“Pan-European regulations often appear stringent due to their formalised application,” she noted, “but they provide clarity and consistency.” National regulators may still maintain local practices, but AMLA’s framework is designed to standardise expectations across borders.
Implications for Digital Identity and Onboarding
One of AMLA’s primary focuses is the integration of digital identity solutions for onboarding processes. While this could raise concerns about complexity, De Roos sees it as an opportunity. The framework aligns with the market’s direction and includes both electronic and non-electronic verification options to ensure inclusivity.
“The AML regulation offers a clear path forward,” said De Roos. “It includes practical failsafe solutions for those not equipped for digital verification.” Legislation like the Digital Operational Resilience Act (DORA) will further strengthen the security of these digital processes, making them more resilient and trustworthy.
Data Privacy and Cross-Border Cooperation
AMLA is also expected to improve cross-border collaboration by facilitating secure data-sharing on high-risk clients. The regulation ensures that data is shared only when necessary and under strict safeguards, maintaining compliance with existing data protection standards like GDPR.
However, disparities remain, particularly with the UK. As De Roos points out, “The UK currently lacks a national digital identity framework, which could create friction in cross-border compliance post-2025 when GDPR alignment is no longer guaranteed.”
Competitive Advantage Through Early Adoption
Forward-thinking financial firms could gain a significant edge by proactively adopting AMLA’s technology-centric standards. These include streamlined onboarding processes, biometric authentication, and digital verification tools, which can enhance both operational efficiency and customer experience.
“Fintechs and neobanks are well-positioned to lead this transformation due to their built-in agility,” De Roos noted. “Firms that move quickly will not only comply more easily but position themselves as industry leaders.”
Fourthline’s Role and Strategic Alignment
As a regulated financial institution, Fourthline has already begun integrating AMLA’s requirements into its services. The company’s value proposition lies in its deep regulatory expertise and ability to offer locally compliant solutions across the EU and UK.
“We aim to be a partner that enables day-one compliance,” said De Roos. “Our goal is to foster positive, proactive conversations around AML compliance and drive innovation in the sector.”
With the establishment of AMLA, the landscape for financial services in Europe is undergoing a fundamental shift. Firms that embrace the change and invest in technology-driven compliance solutions will be better equipped to navigate the evolving regulatory environment.
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