Background
From 2028, AMLA will be directly supervising obliged entities in the financial sector that operate in at least six Member States and have a high-money laundering and terrorist financing risk profile. Article 15(3) of the AMLAR requires AMLA to develop ITS that specify how AMLA and financial supervisors cooperate in the context of the direct supervision. The draft ITS therefore plays a pivotal role in ensuring continuity and consistency in AML/CFT supervision across the EU.
Summary
The final report highlights the following in relation to the draft ITS:
- Simplification and proportionality: AMLA has designed the draft ITS to support the European Commission’s simplification agenda and ensure reporting requirements remain proportionate. The framework adopts a sequential approach: supervisors first identify eligible obliged entities and only those entities are then required to provide the additional data needed for AMLA’s risk assessment and selection process. Following consultation feedback, AMLA also introduced an exemption where supervisors can already determine from existing information that an entity is not eligible.
- General Considerations: The creation of AMLA represents a significant shift from the current system, under which AML/CFT supervision is carried out exclusively by Member State competent authorities (NCAs). However, the new regime is intended to function as an integrated supervisory system in which AMLA and NCAs cooperate closely, based on mutual trust and good faith. The draft ITS under Article 15(3) AMLAR aims to provide the operational foundations for this cooperation, supporting effective supervision when entities move between national and EU-level oversight.
- Cooperation between financial supervisors and AMLA: The draft ITS develop the cooperation requirements set out in AMLAR by clarifying key principles such as the duty to cooperate in good faith and exchange information. It establishes practical arrangements to facilitate cooperation, including AMLA’s responsibility to provide a secure communication channel for sharing information during the selection process and when supervisory responsibilities are transferred between AMLA and NCAs.
- Selection process: The selection of obliged entities for direct AMLA supervision is the first step in the new supervisory framework and requires cooperation between AMLA and NCAs. The draft ITS defines the stages of the process, from identifying eligible entities through to publication of the final list and allocates responsibilities between the relevant authorities.
- Sequential approach: The draft ITS adopt a sequential process under which NCAs collect eligibility information, perform data quality checks and submit the data to AMLA. AMLA then undertakes the risk assessment and selection exercise, working closely with NCAs. This approach is intended to improve efficiency while ensuring that AMLA receives reliable data for decision-making.
- Notification and publication of selected obliged entities: To promote transparency and accountability, AMLA must notify selected entities and relevant NCAs of the outcome of the selection process before publication. The framework also seeks to ensure legal certainty by requiring entities to be informed of their rights, obligations, and available appeal mechanisms.
- Transfer of supervisory tasks and powers: Articles 10 to 12 establish procedures for transferring supervisory responsibilities between AMLA and NCAs. The framework is intended to ensure smooth transitions without disrupting ongoing supervision. A key feature is the creation of an inventory of information to support the transfer of supervisory histories when entities are selected for, or removed from, direct AMLA supervision.
- Joint supervisory teams: Joint Supervisory Teams (JSTs) will be AMLA’s operational supervisory units, with one JST assigned to each selected entity. Teams will comprise AMLA staff and representatives from relevant NCAs and will be led by an AMLA coordinator. The draft ITS supplements the AMLAR by introducing coordinator rotation, equal access to information among team members, and mechanisms for coordinating NCA participation where several NCAs are involved.