The birth of the new anti-money laundering authority: harnessing the power of EU-wide supervision

Date19 May 2023
Pages322-330
DOIhttps://doi.org/10.1108/JFC-03-2023-0059
Published date19 May 2023
AuthorGeorgios Pavlidis
The birth of the new anti-money
laundering authority: harnessing
the power of EU-wide supervision
Georgios Pavlidis
School of Law, Neapolis University, Paphos, Cyprus
Abstract
Purpose This paper aims to criticallyexamine the European Unions legislative initiative to establish an
Anti-Money Laundering Authority (AMLA), which will introduce union-level supervision and provide
support to national supervisors in the f‌ield of anti-money laundering and countering the f‌inancing of
terrorism (AML/CFT),as well as to f‌inancial intelligence units (FIUs) in EuropeanUnion (EU) member states.
The paper discusses why this initiative was deemed necessary, which are the key objectives, rules and
principlesof AMLA and which challenges and opportunities will emerge as AMLA becomesoperational.
Design/methodology/approach This paper draws on reports,legislation, legal scholarship and other
open-sourcedata on the EU legislative initiativeto establish a new AMLA.
Findings AMLA will provide a comprehensive framework for EU-level AML/CFT supervision and for
cooperation among FIUs. If all organisational challenges are properly addressed, the new authority will
signif‌icantlyenhance the EUs ability to tackle money launderingand terrorism f‌inancing.
Originality/value To the best of the authors knowledge, this study is one ofthe f‌irst to examine the
mission, governance and supervision mechanisms of the EUs AMLA, as well as the challenges and
opportunitiesassociated with its functioning.
Keywords Money laundering, European Union, Anti-money laundering authority (AMLA),
Supervision, Financial intelligence unit, Decentralised agencies
Paper type Research paper
1. Introduction
The 2021 European Commissions proposal[1] to establish the European Union Anti-Money
Laundering Authority (AMLA)is an essential step towards tackling the growing menaceof
money laundering and terrorism f‌inancing in Europe. This is a priority for the European
Union (EU) in its f‌ight against organised and serious international crime (Council of the
European Union, 2021). AMLA is the cornerstone of a comprehensive action plan put
forward in 2020 to prevent these criminalactivities [2]. By introducing EU-level supervision
and providing support to national supervisors in the f‌ield of anti-money laundering and
countering the f‌inancing of terrorism (AML/CFT), as well as to f‌inancial intelligence units
(FIUs) in EU member states, AMLA will create an integrated system that will strengthen
© Georgios Pavlidis. Published by Emerald Publishing Limited. This article is published under the
Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and
create derivative works of this article (for both commercial and non-commercial purposes), subject to
full attribution to the original publication and authors. The full terms of this licence may be seen at
http://creativecommons.org/licences/by/4.0/legalcode
This study was supported by the EUs Erasmus+ Programme. This publication ref‌lects solely the
authors views. The European Education and Culture Executive Agency (EACEA) and the European
Commission are not responsible for any use of the information presented herein.
JFC
31,2
322
Journalof Financial Crime
Vol.31 No. 2, 2024
pp. 322-330
EmeraldPublishing Limited
1359-0790
DOI 10.1108/JFC-03-2023-0059
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm

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