Minister McGrath briefed Government colleagues at Cabinet today about the opportunity and the Government supported his proposal to put Ireland forward to host the new authority.
The AMLA will be a significant EU institution, tasked with supervision – either directly or jointly with national supervisors – of entities in the financial services sector in the first instance, but eventually also in the non-financial sector. The supervision will be in respect of the entities’ compliance with anti-money laundering and countering financing of terrorism rules and standards (AMLCFT). The institution is due to be established in 2024, although it is not expected to be fully operational until 2026/2027.
AMLA will be established on foot of an EU Regulation that was published in July 2021 and expected to be finally adopted by the EU, later this year. It will oversee implementation, by obliged entities, of the new EU “Rulebook” on AMLCFT matters and is expected to provide harmonised guidance and regulatory technical standards to national supervisors. For some time, there has been concern at EU level that AMLCFT rules and standards need to be strengthened across EU Member States and applied in a uniform manner. Establishing a new EU supervisory body solely focused on strengthening the EU AMLCFT framework is a significant step in on that road.
AMLA will acquire the AMLCFT competences of the European Banking Authority and will also host the secure communications network for the EU member States’ national Financial Intelligence Units (in Ireland, this is a division of An Garda Síochána), which is currently maintained by Interpol.
Speaking today, the Minister for Finance, Michael McGrath said:
“I believe Ireland is a great location for this important new EU authority. We have a significant financial services sector, built over decades, that will be subject to AMLA’s direction and the new Anti-Money Laundering and Countering the Financing of Terrorism (AMLCFT) Rulebook.
Within that sector, there is good AMLCFT compliance as we have a robust framework which will be further enhanced by this new agency. Hosting it here will only add to Ireland’s and the EU’s compliance with international standards.
Ireland benefits from a highly skilled labour force and from strong collaborative relations with our EU partners, the European Commission and the global AMLCFT standard setter – the Financial Action Task Force (FATF).
Ireland has a good reputation for strong administration and governance and a unique perspective as the significant common law jurisdiction in the EU. Ireland is also a significant financial services location both in the context of the EU and internationally. Locating AMLA in Ireland can benefit the authority, as it would have close proximity to a range of entities from which it can learn what’s needed to develop its operational expertise; and it can benefit Ireland, as the supervised entities will have more ready access to a new supervisor with advice on best practice across the EU.
I look forward to making the case for Ireland as an ideal location for the AMLA with my European counterparts over the coming months.”
