According to CoinDesk, the European Union (EU) is establishing a new Anti-Money Laundering Authority (AMLA) in Frankfurt, Germany, to directly oversee the crypto sector. The authority, along with national authorities from the EU's 27 member states, will ensure compliance with anti-money laundering and counter-terrorist financing obligations agreed upon by the bloc. The AMLA is part of a legislative package aimed at combating money laundering and terrorism financing across the EU, creating a single rulebook for all its members.
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and Capital Markets Union, stated that the authority is addressing risks posed by crypto and the anonymity it enables. The EU has also revised its transfer of funds rules (TFR) to allow for the tracing of crypto transactions. The AMLA is set to begin its work as early as Friday morning. The EU is currently finalizing its AML regulatory framework (AMLR), which addresses customer due diligence and transfer limits. Frankfurt was chosen as the seat for the AMLA through a joint vote of the European Parliament and Council.