Financial leaders have touted the EU’s new anti-money laundering watchdog as a milestone in fighting financial crime, but only half of entities surveyed said they have a defined roadmap to implement new rules.
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The EU’s Anti-Money Laundering Authority (AMLA), a new supervisory agency created by a wider anti-money laundering and counter financing of terrorism (AML/CFT) package, is a landmark development capable of better combating financial crime in Europe, financial leaders have said.
Speaking yesterday at Sibos in Frankfurt, where AMLA is headquartered, A&O Shearman senior advisor Joachim Wuermeling said the EU’s AML package is a “milestone” in the fight against money laundering.
The new package, which will harmonise and ensure common application of AML/CFT rules, seeks to converge requirements for national supervisors and financial intelligence units, while transferring certain supervisory powers to AMLA.
AMLA became operational on 1 July and will begin selecting its 40 obliged entities for direct supervision by July 2027. By January 2028, it will be fully operational with full supervisory powers.
While the speakers lauded the new measures, of the respondents to an audience poll, 54% said their institution has a defined roadmap and implementation plan, 31% said they were aware of the new requirements but had yet to develop a formal programme and 15% were in the early assessment and planning phase.
Anu Ratan, head of regulatory change for EMEA at Bank of New York Mellon, said the new measures address the divergence between member states on supervision and will promote better collaboration and supervision. While AMLA will be central to that, information sharing requirements will ensure financial intelligence units and national supervisors can better collaborate to combat financial crime.
Institutions must plan early despite regulatory technical standards remaining unfinalised, Osman Saҫarҫelik, head of global standards at Commerzbank, warned. Businesses should use the EU’s AML changes as an opportunity to “recalibrate their processes, risk management and governance structures,” he added.
The European Commission last week announced it was launching an infringement process against 11 member states for failing to meet a deadline to begin implementing the new AML framework into law. Despite the optimism surrounding the new package, it will not be without its difficulties.