Frankfurt to Host New EU Anti-Money Laundering Agency

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Facts

  • The European Union will base its Anti-Money Laundering Authority (AMLA) in Frankfurt, Germany, the EU's Belgian presidency announced on Thursday. The agency's mission is to crack down on money laundering and sanction circumvention.1
  • AMLA will also focus on terrorism financing in the EU. Prior to AMLA's establishment, the EU had no centralized force to stop illicit funds, and Brussels relied on national authorities to enforce its rules, which some member states failed to comply with.2
  • With over 400 employees, AMLA is expected to begin operations in mid-2025. The agency's establishment is part of a broader anti-money laundering package, which the European Parliament and Council will formally vote to approve between April 22 and 25.3
  • The Parliament and Council both voted on AMLA's host city — with Frankfurt also being home to the European Central Bank — and it was the first time Parliament played a part in selecting a home for an EU agency since EU courts stripped the Council of its unilateral role.4
  • Frankfurt beat out eight other cities to house AMLA, including Rome and Paris. European Commissioner for Financial Services, Mairead McGuinness, has said the agency will implement an EU-wide cash payment limit of €10K and directly oversee the crypto sector.5

Sources: 1Dw.Com, 2MSN, 3US News & World Report, 4POLITICO and 5Yahoo Finance.

Narratives

  • Narrative A, as provided by Rusi. Choosing a host city for AMLA was challenging, and it's easy to see how the political influence of a city like Frankfurt could coerce EU officials into approving its bid. While Frankfurt has an extensive network, particularly in the financial sector, it has many cost drawbacks that make it a questionable host for AMLA. EU leaders should've primarily focused on each city's tangible costs and benefits, but behind-the-scenes back-scratching was the deciding factor for Frankfurt's selection.
  • Narrative B, as provided by Renew Europe. After two years of careful deliberation and debate, the European Parliament and Council selected Frankfurt as the home of the AMLA. While all nine potential cities had their reasons for consideration, Frankfurt stood out for its historical and symbolic significance. The fair and transparent selection process has now concluded, and all EU members are focusing on empowering AMLA and eliminating dirty money from the bloc.

Predictions