EU Anti-Money Laundering Authority (AMLA)

The AMLA: What Is the New EU Anti-Money Laundering Authority?

Responsibilities, Powers, the Frankfurt Location, and what AMLA Means for Businesses

Combating money laundering and terrorist financing has been a priority for the European Union for years. With the creation of the Anti-Money Laundering Authority (AMLA), the EU is now taking a decisive step toward centralized supervision. This authority is intended to bring greater uniformity, efficiency, and enforcement capacity to the previously fragmented European financial system.

Who is the AMLA?

The AMLA is a newly established EU authority dedicated to combating money laundering and terrorist financing, which took up operations in Frankfurt on July 1, 2025, under the chairmanship of Bruna Szego. Unlike previous structures, which relied largely on national supervisory authorities, the AMLA adopts a centralized, EU-wide approach.

This marks a decisive step toward a unified European financial system, which, with its 27 member states, previously had highly fragmented legal and regulatory frameworks and thus allowed for many loopholes for money laundering and terrorist financing.

The AMLA is intended to directly supervise large, cross-border financial institutions in particular, while also serving as a coordination hub for national supervisory authorities. The goal is to reduce inconsistencies in the application of anti-money laundering regulations within the EU.

Why is the AMLA Headquartered in Frankfurt?

In February 2024, following an intensive selection process, Frankfurt was chosen as the permanent location for the AML Authority, ahead of major cities such as Brussels, Paris, Madrid, and Dublin. Among other things, the decision-making body sought to facilitate synergies with existing financial supervisory institutions and thereby increase efficiency.

The decision to choose Frankfurt as the location also sent a political signal, as it strengthens Germany’s position as the largest economy within the EU.

Further factors were decisive in selecting Frankfurt as the seat of the AMLA:

• Frankfurt is an established financial center in Europe, located near the European Central Bank (ECB) and other EU supervisory authorities.
• Germany is home to a large number of financial institutions that are significant within the EU.
• Frankfurt already has established infrastructure for financial supervision and regulation.
• The federal government, the state of Hesse, and the city of Frankfurt have committed to providing financial support for the authority’s establishment during the initial phase over a period of five years.

Key Facts About the AMLA

Fact	Details
Establishment	June 26, 2024 (published in the EU Official Journal on June 19, 2024)
Operational launch	July 1, 2025
Headquarter	Messeturm, Frankfurt am Main
Chairperson	Bruna Szego (formerly of the Banca d’Italia, appointed January 21, 2025)
Employees	~400+ currently, ~432 planned by the end of 2027
Direct supervision	40 cross-border financial institutions, including crypto service providers
Legal basis	EU AML Package: AMLR (EU) 2024/1624 + AMLD6 (EU) 2024/1640
EU AMLR effective	July 10, 2027, in all EU member states
FIU.net transition	Fully under the AMLA Directive starting July 2027
Funding	Federal government, State of Hesse, City of Frankfurt support the start-up phase (5 years)

 

Context: The AMLA as Part of the EU AML Package

The European Anti-Money Laundering Regulation (EU AMLR) aims to take the harmonization of regulatory provisions and technological standards within the EU to a new level, as we explain further in our blog post “Key Facts About the Regulatory Trilogy.” The AML Authority is part of this comprehensive EU legislative package to combat money laundering, terrorist financing, and other forms of financial fraud.

Another component of the EU AML package is the Anti-Money Laundering Directive (AMLD6), which defines the national requirements. Although the core provisions of AMLD6 were already defined and adopted by the European Commission before the AMLA began operations, the AMLA is operationally responsible for drafting the Regulatory Technical Standards (RTS) to flesh out the directives and regulations of AMLD6.

Duties and Powers of the AMLA

The AMLA has been granted extensive powers:

1. It is responsible for coordinating measures and promoting the exchange of information between the various Financial Intelligence Units (FIUs).
2. The AMLA has the authority to define the regulatory technical standards (RTS) regarding customer due diligence (CDD), which will become mandatory upon the entry into force of the EU-AMLR. These RTS are to be finalized by July 1, 2026.
3. It assumes direct supervision of 40 specifically selected high-risk financial institutions based in the EU. All other institutions remain under their respective national supervision, which, however, always act in close consultation with the AMLA.
4. It is responsible for coordinating and supporting national supervisory authorities, such as BaFin, which remains the competent supervisory authority in the German financial sector even after the EU-AMLR enters into force.
5. As a key authority, the AML Authority can intervene specifically in cases where national financial supervisory authorities fail to adequately fulfill their supervisory responsibilities.

What Will Change for Regulated Entities?

For banks, financial service providers, and other obligated firms, the EU AMLR and the associated AMLA will bring some noticeable changes:

• More uniform rules through the so-called Single Rulebook
• Stricter and more consistent supervision
• Higher requirements for Know Your Customer (KYC), Know Your Business (KYB), and monitoring processes
• Possibility of direct supervision by the AMLA (for high-risk institutions)
• Increased pressure to implement efficient compliance systems

Internationally active companies, in particular, benefit from clearer guidelines, as the burden resulting from differing regulatory and legal conditions across various markets is reduced. At the same time, however, they must expect more intensive controls.

The WebID Identity Hub, with its diverse range of AML compliant identification and signature solutions, helps regulated companies meet the new EU AMLR requirements and orchestrate their ID ecosystem in a flexible and future-proof manner.

What Does AMLA Mean for Private Individuals?

For private individuals, the effects are indirect but still noticeable. They must expect stricter identity checks, for example when opening a bank account. While these may entail slightly more effort in some cases, they also increase security against financial crime (such as through social engineering).

In the long term, the AMLA is intended to help strengthen confidence in the European financial system, albeit indirectly.

AMLA: Opportunities and Criticism

The establishment of the AMLA is viewed both positively and critically, the actual effectiveness of this new supervisory authority will depend heavily on the practicality of its implementation.

Opportunities	Criticisms
EU-wide uniform application of AML regulations provides clear guidance	Conflicts of jurisdiction with national financial supervisory authorities
Closing regulatory gaps	High implementation costs for obligated companies
More effective combating of cross-border money laundering	Uncertainties regarding practical cooperation
Increased efficiency through central coordination	Risk of shifting bureaucratization to the EU level

 

Questions and Answers about the AMLA

We have compiled further questions and answers regarding the regulatory trilogy, comprising the EU AMLR, eIDAS 2.0, and the EUDI wallet in a “Q&A”. The WebID Team will be happy to answer any further questions upon request via our contact form.

What is the AMLA, Explained Simply?

The AMLA (Anti-Money Laundering Authority) is the European Union’s new central anti-money laundering supervisory authority. It is the EU’s new cornerstone for preventing money laundering and other forms of financial crime through centralized supervision and uniform standards.

Where is the AMLA Located?

The AMLA is headquartered in Frankfurt am Main and began operations on July 1, 2025.

What Scope of Authorities Does the AMLA Have?

The AMLA is vested with far-reaching powers, as it can conduct investigations, request information, and exert pressure on financial institutions in the event of violations.

What Are the Criticisms of the AML Authority?

A key point of criticism is that the establishment of the AMLA ultimately carries the risk of shifting bureaucratization to the EU level.

What Does AMLA Mean for Private Individuals?

For private individuals, little will change with the responsibilities of the AMLA, which has been operational since July 2025, apart from the fact that identification processes (such as opening an account) will become somewhat more comprehensive, as additional data must be collected and further processes implemented to enhance security.

What is the EU Register of Beneficial Owners, and How Does AMLA Relate to it?

The AMLA will coordinate and monitor national transparency registers regarding beneficial owners (UBOs) to combat money laundering in a uniform manner. It ensures that national registers are used correctly and gains access to data to verify compliance with regulations.

When Will the AMLA Apply Directly to Companies?

The new authority will begin its work in phases, with direct oversight of certain companies being phased in gradually. Obligated companies should keep January 1, 2028, in mind as the most important date. From that point on, the AMLA will assume direct supervision of selected high-risk financial institutions.

What Exactly Does the AMLA Do?

It directly supervises approximately 40 of the highest-risk financial institutions in the EU, coordinates national financial supervisory authorities (such as BaFin in Germany), and connects the Financial Intelligence Units (FIUs) of EU member states to facilitate faster information flow.

In addition, it defines the regulatory technical standards (RTS) for the financial sector regarding customer due diligence (CDD) procedures. These guidelines will be published on July 1, 2026, following consultations.