AMLA Regulation – impact and requirements
- The AMLA will be the direct supervisor of a limited number of obliged institutions from the financial sector, identified as being most at risk (the so-called “selected obliged institutions”). In addition, the AMLA will have the power to take over supervision from the national authority over any obliged institution from the financial sector, in emergency cases of suspected breaches of AML/CFT regulations and the national authority fails to take effective and adequate action.
- The obliged institutions under direct supervision will be selected every 3 years based on objective criteria. The first selection will be made in 2025. The following entities will be eligible for direct supervision:
- credit institutions that operate in at least 7 Member States through subsidiaries or branches, including the Member State of the registered office of the credit institution,
- other financial institutions that are active in 10 or more Member States, including the Member State of the registered office, any other Member State in which the financial institution operates through subsidiaries or branches, and all Member States in which cross-border activities are carried out under the freedom to provide services or through a network of agents.
- The institutions subject to direct supervision will be selected on the basis of the methodology established by the AMLA in the RTS, separately for each group of financial institutions and on the basis of the criteria set forth in the Act. The selected obliged institutions will be the following institutions:
- credit institutions that meet the aforementioned requirements and have a high level of inherent risk in at least 4 Member States as well as have been the subject of an AML/CFT infringement procedure in at least one of those Member States within the last 3 years,
- financial institutions that meet the aforementioned requirements and have a high level of inherent risk in at least one Member State where their registered office is located, operate or operate through subsidiaries or branches, and have a high level of inherent risk in at least 5 other Member States where they conduct cross-border activities under the freedom to provide services or through a network of agents.
- The AMLA will have supervisory and control powers over obliged institutions under its direct supervision and will have the power to issue binding administrative decisions against such institutions, including the imposition of administrative fines. The AMLA decisions will be subject to appeal to the Court of Justice of the European Union.