The Council of the European Union (EU) has reached a preliminary agreement to establish a new regulatory body to oversee Anti-Money Laundering (AML) efforts within the bloc.
The new body will be named the Anti-Money Laundering Authority (AMLA) and amongst all things, the regulator will be empowered to boost the efficient functioning of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CTF) framework of the Union.
The proposed establishment of the AMLA, hinted earlier by Bloomberg per an earlier report by TheCoinRise, is yet another attempt by the European Union to stay ahead of financial crimes. With a defined regulator now in charge, companies operating within the EU will know who to submit to directly when it comes to fulfilling the AML obligations.
“Given the cross-border nature of crime, the new Authority is expected to make a strong and useful contribution in fighting anti-money laundering and the financing of terrorism,” the announcement reads, “Among other tasks, it will contribute to the harmonisation and coordination of supervisory practices in the financial and non-financial sectors, the direct supervision of high-risk and cross-border financial entities and the coordination of financial intelligence units.”
The EU AMLA and its Broad Engagement
The AMLA will be assigned a number of companies and industries to oversee. The Council of the EU also reiterated that the new regulator will have a defined oversight of companies operating within the digital currency ecosystem.
“In its position, the Council adds powers to the Authority to directly supervise certain types of credit and financial institutions, including crypto asset service providers, if they are considered risky. It also entrusts the Authority to supervise up to 40 groups and entities – at least in the first selection process – and to ensure a complete coverage of the internal market under its supervision. More powers are also given to the general board in the governance of AMLA,” the announcement added.
The Europe Union is unrelenting in introducing regulations that can strengthen its financial ecosystem, irrespective of how diverse it may be. While the anticipation for the Markets in Crypto Assets (MiCA) bill is high, the emergence of the AMLA will further lend structure to the broader enforcement actions of the European Union.