AMLA begins collecting data to choose 40 firms for direct supervision

The European Union’s new anti-money laundering authority, AMLA, has initiated a process of data collection to identify the 40 entities that will come under its direct supervision starting in 2028. This exercise is aimed at helping AMLA test and fine-tune its risk assessment models for financial institutions.

Starting in March, the data collection process serves as a preparatory step for AMLA’s direct supervision implementation. The goal is to ensure that money laundering risks within financial institutions are consistently evaluated by supervisors across the EU. AMLA intends to assess two categories of financial institutions through this exercise – the first includes entities that may be eligible for direct supervision, while the second comprises a sample of institutions expected to remain under national oversight.

National supervisors have already submitted lists of these two groups to AMLA, and selected institutions have been informed of their participation in the data collection exercise. AMLA emphasizes the importance of high-quality data from the private sector in developing a reliable selection model and establishing a common EU-wide risk assessment methodology.

Participating institutions will have the opportunity to test their systems in advance of future data collections through this exercise. The results will also aid in refining the data collection process planned for the selection phase. AMLA’s Chair, Bruna Szego, highlights the significance of testing and validating models to progress towards effective and standardized risk assessments throughout the EU. The private sector’s involvement is crucial in ensuring the robustness and reliability of the final models.

Upon the completion of testing and calibration, AMLA will compile a final list of entities eligible for direct supervision. National supervisors will then gather data from these institutions in early 2027. This information will be used by AMLA to finalize the selection of the 40 entities that will fall under its direct supervision starting in 2028.

In conclusion, AMLA’s data collection exercise marks a significant step towards establishing a comprehensive and harmonized approach to combating money laundering across the EU. The active participation of both financial institutions and national supervisors is vital in the success of this initiative.