New EU body steps up AML regulatory evolution

A coordinating European agency is to tighten supervision and raise standards for anti-money laundering compliance across member states. Ted Datta explores the substantial implications for many UK-based financial institutions.

Ted Datta is head of Industry Practice for Financial Crime Compliance at Moody's: www.moodys.com.

The European Union's Anti-Money Laundering Authority (AMLA) was established on 1 July 2025, marking a significant step towards centralising EU supervision and enhancing its approach to tackling financial crime through a dedicated regulatory framework. Until now, enforcement in the region relied on national regulators making cross-border actions, including with the United Kingdom. AMLA introduces coordinated supervision from a central agency that has the power to impose fines of up to ten per cent of annual turnover or up to €10 million on the banks within its purview.