- 19/06/2024 Publication of Regulation (EU) 2024/1620 establishing the IUR in the EU Official Journal
On 19 June 2024, Regulation (EU) 2024/1620 establishing the’Anti-Money Laundering Authority (ALBC) (AMLA, which stands for Anti-Money Laundering Authority in English) has been published in the Official Journal of the European Union.
Based in Frankfurt, this supranational entity is intended to coordinate the efforts of member states and to harmonise surveillance practices across the continent.
Responsibilities of the ALBC
The Anti-Money Laundering Authority (ALBC), as a newly formed supranational body, is entrusted with several essential responsibilities and powers to step up AML/CFT across Europe:
1. Direct and Indirect Supervision
In terms of oversight, the ALBC will play a dual role:
She will directly supervise selected obliged entities (40 entities will be selected in 2027 and will be directly supervised by the ALBC from 2028, these entities are named SOEs for Selected Obliged Entities)
She act as an indirect supervisor for non-selected obliged entities (NSOEs) and, more generally, as the AML/CFT supervisor for the entire financial sector by collecting and analysing information provided by national authorities.
2. Coordination and Harmonisation
L'ALBC agira comme une central pivot for coordinating actions between national authorities.
By harmonising surveillance practices and sharing information between member states, the ALBC aims to eliminate regulatory loopholes that can be exploited by criminals.
3. Power of Intervention
In the event of a serious non-compliance or imminent financial security risk, the’ALBC will have the power to intervene directly.
This can include the imposition of financial sanctions, restricting commercial operations, or even suspending the activities of a financial entity until compliance issues are resolved.
4. Development of Rules and Standards
The ALBC will actively participate in the formulation of new anti-money laundering regulations and standards.
In collaboration with other European institutions, such as the European Commission and the European Parliament, the ALBC will help design rules that address the emerging challenges of money laundering and terrorist financing.
5. Training and Technical Support
Recognising the importance of technical expertise in the fight against money laundering, the AMLC will also provide Training and skills development programmes for regulators and financial institutions within the EU.
6. International Collaboration
Given that money laundering is often transnational, AML/CFT will collaborate with international partners such as the Financial Action Task Force (FATF) and other non-EU financial authorities, to exchange information and align AML efforts globally.
Reactions and Prospects
Reactions to this initiative are mixed. While many praise this step forward as necessary for Europe's financial security, some critics are concerned about the challenges involved in implementing such measures and potential conflicts of jurisdiction with national authorities. Nevertheless, the ALBC is widely seen as a central pillar of the new European regulatory framework against money laundering.
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