By Laura Lynott, Senior Correspondent
EUROPE’S new AML laws and the new anti-money laundering Authority (AMLA) marked major progress, said one of the EU’s most senior financial services officials.
Alexandra Jour-Schroeder, Deputy Director General for the European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union, said “for the first time we’ll have a rule book.”
Welcoming the formation of AMLA Ms Jour-Schroeder was speaking at the fifth ‘Women in FinCrime Summit (WiFC)’ on Tuesday.
The DDG at DG FISMA described the plan for AMLA when it opens in mid-2025 with 400 staff members, as a “reality” borne from a long-awaited vision.
“Finally we now have what we call a political agreement on the AML package,” Ms Jour-Schroeder said. “And I wanted to give a bit of an overview of the most interesting months… In the European Union. For the first time ever (we will have) a dedicated agency… a common rule book… A regulation that will be directed to the member state.
“For all member states, there’s also what we call a directive, that gives more flexibility on implementation of course, under very clear lines…
“We still need a formal approval of this particular agreement, but I have to say I’m very optimistic.”
Though Ms Jour-Schroeder expected the development of the body to take some time, she believed the AMLA was set to be “very robust” and that it would bring about direct change across the private sector in fighting money laundering.
One of the tasks currently set is to “try to mitigate risk associated with cash” but a new “harmonised approach” would strengthen the industry, she said.
“You’re not taking away the risk approach, which is of course, very important,” she said. The private sector would have to carefully examine certain transactions.
And risk assessments and the development of tech, would help AML “level up” she said.
AMLA is, she felt, a “real game changer,” which will implement “direct supervisory competencies on risk” within the financial sector.
“It will also encourage more supervisory convergence” to create a “more integrated system of AML and CFT (combatting the financing of terrorism) …” she said.
The agency will also operate “comprehensive” duties in relation to other sectors, including gambling, high value accounting and real estate.
“Here the competence is more about coordination and convergence provision,” Ms Jour-Schroeder said.
While the body would also play “an important role in coordinating financial cooperation for the exchange of information,” she added, utilising “system data that is already there.”
“We want to start now to help IT operations, as there are a lot of things to be done,” she said.
A recruitment process had to start and she expected this to be an “exciting process.”
When in operation, AMLA would ensure all larger company owners are identified, she stated.
In the past, it has sometimes proved a difficult process to identify the owners of some businesses, she admitted.
But under AMLA regulations, companies must register owners, in order to reduce the possibility of money laundering. This scenario was particularly relevant, she said in the “context” of companies operating with “high value goods.”
Though it was also “important” that AMLA operated with “proportionality” she added.
Politically exposed persons (PEP) at risk of being susceptible to money laundering activity, would be monitored, as would some family members, depending on “a risk based approach, proportionate only for those who are the most important political officials,” she said.
While the “necessary steps” would be taken, this process would “not go too far,” she added.
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