EU AMLA Now Operational in Frankfurt: What It Means for Compliance Teams

The European Anti-Money Laundering Authority (AMLA) has officially begun operations in Frankfurt, Germany, marking a historic shift in how the European Union supervises financial crime prevention. Under the leadership of Chair Bruna Szego, the new agency will directly supervise the highest-risk financial institutions across EU member states.

What is AMLA?

AMLA is a decentralized EU agency established under the 2024 AML package. Unlike previous arrangements where each member state supervised its own institutions, AMLA will have direct supervisory powers over selected obliged entities deemed to pose the highest money laundering risks.

The authority replaces the European Banking Authority's (EBA) previous AML coordination role and represents a fundamental change in EU financial crime supervision.

Direct Supervision: Who's Affected?

AMLA will directly supervise approximately 40 financial institutions across the EU, selected based on their risk profile, cross-border activity, and size. The selection criteria include: institutions operating in at least 6 member states, those with significant transaction volumes in high-risk jurisdictions, and entities with previous supervisory findings.

Timeline for Implementation

• Mid-2025: AMLA becomes operational with coordination functions
• January 2026: First selection of directly supervised entities
• July 2026: Direct supervision begins
• 2027: Full supervisory capacity achieved

What Compliance Teams Should Do Now

Financial institutions should prepare by: reviewing their AML/CFT framework against the new EU Single Rulebook, ensuring group-wide consistency in policies and procedures, preparing for potential direct supervision, and strengthening their beneficial ownership verification processes.

Impact on Non-EU Entities

Third-country institutions with EU operations should pay close attention. AMLA will coordinate with national supervisors on the oversight of branches and subsidiaries of non-EU banks, potentially harmonizing expectations across the single market.

The establishment of AMLA represents the most significant reform of EU AML supervision in decades. Compliance teams should monitor AMLA's publications closely as the authority develops its supervisory approach and technical standards.