The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) is a decentralised EU agency that will coordinate national authorities to ensure the correct and consistent application of EU rules. The aim of AMLA is simple to summarise: to transform the anti-money laundering and countering the financing of terrorism (AML/CFT) supervision in the EU and enhance cooperation among financial intelligence units (FIUs).
The agency launched on 1 July and represents a pivotal moment in the fight against financial crime and digital fraud.
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While direct supervisory powers won’t fully kick in until January 2028, the establishment of AMLA signals a significant centralisation of AML oversight, much like the ECB’s existing T2 banking regulation.
As AMLA begins to define its supervisory approach and work with leaders in the industry, expert insight from Fleur De Roos General Legal Counsel at Fourthline is timely. Specifically, de Roos discusses what the agency means for financial services firms.
RBI: How significant a development is this and does it represent a centralisation of AML oversight?
Fleur De Roos, General Counsel at Fourthline:
The Anti-Money Laundering Authority (AMLA) will fundamentally advance the harmonisation and consistency of AML supervision across the EU. Whilst it marks a move toward centralisation, there will be an expected transitional period where AMLA supervisors work to execute on their centralised supervisory powers. This phase will enable local supervisors to reallocate resources and give clarity to the market on the application of the new framework.
RBI: Who is paying for the set up and running costs of the new agency?
Fleur De Roos:
The funding model for AMLA is clearly defined, with 70% of the funding coming from the supervised entities. The remaining 30% will be funded from the central EU budget.
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By GlobalDataRBI: Will national regulators, such as the FCA, align with AMLA’s new standards and should they be regarded as stringent? Or will a divergence emerge where countries opt for a separate, local approach to regulation and policy?
Fleur De Roos:
National regulators, like the UK’s Financial Conduct Authority (FCA), will be influenced by the leadership team in place at AMLA and the European Supervisory Authorities (ESAs) who will contribute to AMLA’s goals. And it is the chair, Bruna Szego, and Nicolas Vasse, who serves as the Executive Director, amongst other board members that will be critical in setting a collaborative tone and establishing shared supervisory goals.
Pan-European rules imposed by way of regulations are often perceived as stringent by nature due to the formalised and rule-based way these are applied by centralised supervisory authorities, such as the European Central Bank (ECB). Whilst national regulators also operate under strict local rules ensuing from directives implemented into local law, they often incorporate a local supervisory culture that often leads to variations in approach.
AMLA’s framework, developed in collaboration with among others the European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA) and European Banking Authority (EBA), is designed to be robust and ensure a consistent standard across all member states.
RBI: Will the emphasis on digital identity solutions as a default for onboarding create a competitive disadvantage for firms, and complicate current digital identity considerations?
Fleur De Roos:
The steps taken towards digital-first onboarding will be progressive and closely aligns with the market’s direction. Whilst technical standards for elements like biometric authentication under the electronic Identification, Authentication and Trust Services (eIDAS), regulations are still being defined, but the AML regulation provides a clear path forward. It also includes practical failsafe solutions for non-electronic verification, ensuring that no customer is excluded.
Legislation like the Digital Operational Resilience Act (DORA), establishes requirements for financial institutions to effectively manage and mitigate risks associated with Information and Communication Technology (ICT) systems, services, and third-party vendors, and this will further strengthen the security of these processes. AMLA’s rules will complement existing regulations to create a more secure and streamlined digital identity ecosystem.
RBI: How will Europe’s data privacy landscape adjust, and could it impact cross-border collaboration?
Fleur De Roos:
AMLA will enhance cross-border collaboration by enabling financial institutions to securely share data on high-risk clients. The regulation ensures that data is shared only when strictly necessary to prevent financial crime. As with any AI system, human oversight remains a critical safeguard.
The UK currently lags behind in developing a national digital identity framework, so the EU’s advancements could create friction for UK citizens, and vice-versa. The UK’s adherence to the General Data Protection Regulation (GDPR) is only guaranteed until the end of 2025, creating further uncertainty for organisations and the government to navigate.
RBI: Could proactive engagement with AMLA’s framework and adoption of its technological leanings actually become a competitive advantage for forward-thinking firms?
Fleur De Roos:
Proactive adoption of AMLA’s technology-centric framework presents a significant competitive advantage. Firms that quickly integrate these new standards will enhance their customer experience through faster, more user-friendly and streamlined onboarding processes, particularly for low-risk clients. This will not only improve operational efficiency but also position them as market leaders. It is expected that fintechs and neobanks will likely be at the forefront of this transformation due to agility being baked into their operations.
RBI: What is the Fourthline value proposition and what impact does the creation of AMLA have for Fourthline?
Fleur De Roos:
Fourthline’s value proposition is built on our deep expertise in the regulatory landscape. We are already equipped to provide locally compliant solutions in every part of the EU and the UK.
Plus, we are actively integrating AMLA’s requirements into our offerings to ensure that our partners can comply from day one. As a regulated financial institution ourselves, adhering to AMLA is fundamental to our own operations and we want to drive positive conversations.
Fleur De Roos, General Counsel at Fourthline
