As an additional institutional player in the area of anti-money laundering, the AMLA has the potential to water down the FATF standard
University of Zurich; University of California, Berkeley
Abstract
With the establishment of the European Anti-Money Laundering Authority (AMLA), the European Union aims to address long-standing shortcomings in the implementation of Financial Action Task Force (FATF) standards across its member states. This paper examines the legal motives behind AMLA’s creation, its operating mechanisms, and its relationship with FATF. It argues that AMLA does not undermine FATF standards but rather functions as a regional complement to strengthen their implementation within the EU. The analysis highlights the challenges AMLA faces, including jurisdictional limits, operational capacity, and resource constraints. It further explores the prospects of cooperation between AMLA and FATF, suggesting the development of coordinated mechanisms such as joint assessments, information sharing, and cross-border supervision. Ultimately, the coexistence of AMLA and FATF may enhance global anti-money laundering governance, despite some regulatory and coordination challenges.
Keywords:
AMLA, FATF, Anti-Money Laundering, EU Financial Regulation, Global ComplianceCopyright Notice & License:
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