Negotiating teams of the European Parliament and the Council of the EU have reached a political agreement on establishing an Anti-Money Laundering Authority (AMLA). The agreement does not include the seat of the future agency, on which discussions will continue.

As part of a larger package on combating money-laundering and terrorist financing, AMLA would supervise the EU’s new rulebook on combatting dirty money flows. It would be charged with directly supervising the most risky financial entities – those with operations in at least 6 member states – and in any event, supervising one per member state. It will also have strong powers to step in in case of supervisory failures and take over supervisory tasks.

Additionally, AMLA would also act as a central hub helping coordinate the actions of supervisors in different EU countries and ensuring convergence of supervisory practices. Based on a proposal from the Parliament, AMLA will also be tasked with mediating and settling disputes…