Europe’s new Anti-Money Laundering Authority (AMLA) will be headquartered in Frankfurt, Germany, and is expected to begin operations in mid-2025. The AMLA will have the power to oversee high-risk and cross-border financial entities, including crypto companies. It will work in coordination with financial intelligence units and regulators across European countries. Frankfurt was chosen as the location for the AMLA due to its status as the financial capital of Germany and the presence of the European Central Bank in the city. Other potential locations considered included Brussels, Dublin, Madrid, Paris, Rome, Riga, Vilnius, and Vienna.
The AMLA will be staffed by more than 400 employees and will have a general board composed of representatives from financial intelligence units and supervisors from EU member states. It will also have an executive board consisting of a chair and five independent full-time members. This new authority is part of the European Union’s efforts to combat money laundering and illicit financial activities.
In addition to the establishment of the AMLA, the EU has been working on regulations for the cryptocurrency industry and the use of artificial intelligence (AI). The Markets in Crypto-Assets (MiCA) framework, the first comprehensive crypto regulation in the EU, came into force in June 2023. Specific rules governing stablecoins and other types of crypto assets will only take effect in June 2024. Regulations for crypto-asset service providers, such as trading platforms and wallet providers, will come into effect in December 2024.
The EU has been developing regulations for the use of AI. The European Parliament’s Internal Market and Civil Liberties Committees have approved a preliminary agreement on the European AI Act, which aims to establish safeguards and protect citizens’ rights in the use of AI. The act includes measures such as copyright protection for creators and prohibits certain AI applications that pose a threat to individuals’ rights. The first parliamentary vote on the AI Act is scheduled for April 2024.
These developments in Europe highlight the region’s commitment to combating money laundering, regulating the crypto industry, and ensuring the responsible use of artificial intelligence. The establishment of the AMLA and the implementation of crypto and AI regulations demonstrate the EU’s proactive approach to addressing emerging challenges in the financial and technology sectors.
I can already see the corruption and inefficiency that will come with this new authority. It’s just another opportunity for abuse of power.