Frankfurt Selected for EU’s New Authority for Anti-money Laundering

European Union ambassadors together with Members of the European Parliament (MEPs), voted on Thursday, approving Frankfurt as the seat for the EU’s new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). The selection of a city for the AMLA is an important part of the process. The establishment of the AMLA is a part of the EU’s wider package of reforms that seek to strengthen the Union’s efforts against money laundering, as well as terrorist financing.

The European Parliament and the Council provisionally agreed on the entire package and the next step is now for the regulations to be formally adopted. Once this happens, the strengthened regulations will be able to become law, while voting on the matter is expected during a plenary session of the Parliament scheduled between April 22 and April 25, 2024.

There was a total of nine cities that MEPs and EU ambassadors considered for the seat of the new anti-money laundering Authority. However, in light of Frankfurt’s strategic position as a global financial hub, the city was selected on the first round of voting, having received a majority of the votes to become the host of the new agency.

The voting for a host of the AMLA follows an agreement for legislative proposals that seek to strengthen the EU’s anti-money laundering and counter terrorism financing regulations. AMLA’s regulation was agreed upon by legislators back in December. Once the AMLA regulation is adopted, it is expected to be implemented starting from July 2025.

Europe Continues the Fight Against Financial Crimes

The strengthening of anti-money laundering rules is an important process for Europe and one that affects gambling operators as well. Considering both iGaming and retail gambling operators engage in transactions that can involve significant sums, this puts them at risk of not only fraud but also financial crimes such as money laundering.

Ultimately, the new Authority is expected to play a pivotal role in the future of combatting financial crimes across the European Union. Eva Maria Poptcheva (Renew, Spain) along with Emil Radev (EPP, Bulgaria), co-rapporteurs, revealed that the AMLA is expected to play an important part in discovering ill-gained funds on the Old Continent. “AMLA will be a game-changer in cracking down on dirty money in the EU,” they explained. “It will supervise the riskiest financial entities, oversee the non-financial sector, and play a crucial role in stopping evaders from circumventing targeted financial sanctions,” wrote Poptcheva and Radev.