Today nine cities from Dublin to Riga underwent a rigorous evaluation to host the EU’s new Anti-Money Laundering Authority (AMLA). This session delves into various considerations, including housing costs, educational facilities, and transportation links, across potential locations ranging from major capitals like Paris to smaller cities like Vilnius.
Why is a new European AMLA being created?
Following a comprehensive update to EU anti-money laundering regulations, which included measures such as prohibiting large cash transactions and extending scrutiny to the football industry, the focus has shifted to selecting a suitable headquarters for AMLA. The agency, with a workforce of 400, will oversee anti-money laundering operations at 40 significant financial institutions. Cities in contention include Paris, Frankfurt, Rome, Madrid, Vilnius, Vienna, Brussels, Riga, and Dublin.
What is the process to choose the AMLA host?
During a critical meeting in Brussels in January, representatives from each candidate city had one hour to present their case, followed by a question-and-answer session with EU lawmakers and state representatives.
The decision-making process will weigh the effectiveness and appeal of the new agency’s location, with considerations on each country’s track record in combating money laundering. France and Lithuania, ranked highly by the Basel Institute on Governance, stand in favorable positions, unlike Belgium, Italy, and Germany, which are viewed as higher-risk jurisdictions.
EU member states also aim for geographic balance, promoting equitable distribution of agencies across the union. While cities like Madrid and Rome have no EU agencies, and others like Dublin, Riga, and Vilnius host only minor regulators, there’s a case for distributing new agencies more widely.
Paris and Frankfurt might argue that proximity to key financial institutions and major airports offers logistical advantages. However, readiness varies among the candidates, with Vienna and Rome’s facilities not available until 2026, adding another layer of complexity to the decision, particularly in terms of cost.
When will the AMLA location decision be announced?
Today February 20th, Dublin was not shortlisted by two major European Parliament political groups, the EPP and S&D, dealing the Irish capital a major blow.
The decision-making process has evolved, now requiring a joint decision by the EU Council and MEPs, with each member state having one vote and MEPs’ votes distributed by party size.
With a final decision expected tomorrow February 22nd it promises to be a closely contested affair, reflecting the intricate balance of technical requirements, political considerations, and geographic distribution in the EU’s decision-making process.
