By PAUL O’DONOGHUE, Senior Correspondent
AMLA, the EU’s new AML watchdog, will not be investigating the ‘Coin Laundry’ revelations and today said that it does not conduct criminal investigations.
The Authority made the clarification following reports in this publication that AMLA was probing the activities of crypto exchanges amid the publication of the ‘Coin Laundry’ media investigation.
There was also a call from leading anti-fraud MEP Regina Doherty for the agency to directly inquire into the expose which showed poor-or-none KYC or CDD in several crypto exchanges.
The ‘Coin Laundry’ investigation by respected global media outlets co-ordinated by the ICIJ uncovered hundreds of crypto wallet addresses associated with Russian money launderers, large-scale scams and North Korea.
However, AMLA has clarified that directly launching an inquiry into the revelations is not the organization’s role.
“AMLA is a supervisory authority, and as such, does not conduct investigations into criminal activities,” it said in a statement.
“At present, AMLA’s mandate with respect to crypto-asset service providers is that of indirect supervision. Direct supervision remains the responsibility of national competent authorities.”
However, the organization said that it is working to ensure oversight of the sector.
It added: “AMLA recognizes that CASPs (crypto-asset service providers) are exposed to considerable money laundering and terrorist financing risks. We are therefore working closely with national supervisors to promote consistent and effective AML/CFT controls.”
Last week, AMLA Chair Bruna Szego said that the regulator will ‘take a close look’ at the crypto sector.
She said working with national regulators on crypto enforcement will be “one of the first areas of work that AMLA [develops]”.
“Over the next few months, we will take a close look at the European crypto-asset market,” she said. “To promote high AML/CFT standards in both licensing and oversight of crypto-asset service providers.”
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