Anti-Money Laundering Authority (AMLA)

Money Laundering and terrorist financing often cross borders, but the way risks were addressed could differ from one EU Member State to another. Differences in national approaches made it harder to maintain a consistent response to financial crime across the EU. AMLA was created as part of the EU’s wider AML/CFT reforms to bring authorities closer together and make the approach more consistent. 

What Is AMLA?

AMLA stands for the Authority for Anti-Money Laundering and Countering the Financing of Terrorism. It is an EU authority established under Regulation (EU) 2024/1620 to strengthen the EU’s approach to AML/CFT.

Based in Frankfurt, AMLA is now working with national authorities and Financial Intelligence Units (FIUs) as it builds out its role across the EU. Its AML/CFT responsibilities moved from the European Banking Authority (EBA) to AMLA on 1 January 2026, with direct supervision of selected high-risk financial institutions due to begin in 2028. 

What Will AMLA Do?

AMLA works alongside the national AML/CFT  authorities to promote a more consistent approach to supervision across EU Member States. 

Direct Supervision

AMLA might directly oversee financial institutions and groups that operate in at least six EU Member States based on their residual money laundering or terrorist financing risk. Residual risk is the inherent AML/CFT risk of an institution that remains even after implementation of controls.

From 2028, AMLA is expected to directly supervise up to 40 high-risk financial institutions or groups. The selection process for these institutions will be completed by the end of 2027 and as defined in the draft RTS under Article 12 of the AMLA Regulation. The selection process will be repeated every three years. For institutions under its direct supervision, AMLA can assess compliance, carry out supervisory activities and use its enforcement powers where the applicable requirements are not met.

Indirect Supervision

AMLA will not directly supervise every financial institution in the EU. National authorities will continue to oversee institutions outside AMLA’s direct supervisory scope.

In these cases, AMLA works with national supervisors by developing common supervisory approaches, coordinating their work and promoting a consistent application of AML/CFT requirements across Member States.

AMLA Responsibilities

AMLA’s responsibilities cover several areas of EU AML/CFT supervision. These include:

• Developing a common supervisory approach for AML/CFT across the EU
• Directly supervising selected high-risk financial institutions
• Coordinating national AML/CFT supervisors
• Developing regulatory technical standards, implementing technical standards, guidelines and recommendations
• Assessing money laundering and terrorist financing risks
• Supporting cooperation between national Financial Intelligence Units
• Promoting consistent AML/CFT supervision across financial and non-financial sectors

AMLA’s regulatory instruments are intended to clarify requirements and support consistent implementation of the EU’s AML/CFT framework.

AMLA Enforcement Powers

AMLA has enforcement powers within its legal authority, particularly in relation to entities under its direct supervision. These powers include the ability to adopt binding decisions and impose administrative measures and pecuniary sanctions where the relevant legal conditions are met.

AMLA is also developing a common EU approach to enforcement. In July 2026, it issued a final draft RTS, which will be binding on all supervisory authorities (after the European Commission’s approval) to follow when assessing breaches using common criteria so that similar AML/CFT breaches receive more consistent supervisory enforcement.

AMLA does not, however, replace every national AML supervisor. Most obliged entities will continue to be supervised at national level.

Who Does AMLA Apply To?

AMLA’s work affects organisations covered by the EU’s AML/CFT framework, including financial institutions and relevant non-financial obliged entities.

Its direct supervisory role will initially focus on selected high-risk financial institutions and groups. Other financial institutions will remain under national supervision, while AMLA coordinates and supports supervisory convergence.

The wider EU AML framework covers sectors including: 

• Banks  
• Payment Institutions
• Electronic Money Institutions
• Crypto-Asset Service Providers 
• Investment Firms
• Insurance businesses 
• Accountants 
• Auditors 
• Real Estate Professionals 
• Other Obligated Entities

AMLA vs AMLR

AMLA and AMLR are closely connected, but they are not the same thing.

In simple terms: AMLA supervises and coordinates. AMLR sets the rules.

Why Was AMLA Created?

AMLA was created to address differences in AML/CFT supervision across EU Member States and strengthen cooperation against financial crime. Its establishment marks a move towards a more centralised and consistent supervisory model with a common EU approach supported by national authorities.

AMLA is now operational, while its direct supervision function is scheduled to begin in 2028.