EU Launches AMLA for Crypto Surveillance

Do you have crypto? Beware, the EU is watching you! AMLA, the new "guardian" of cryptocurrencies in Europe.

Wednesday, a significant day for the cryptocurrency sector in the European Union. The Council of the EU and the European Parliament have reached an agreement on the establishment of the European Authority for Combating Money Laundering and the Financing of Terrorism (AMLA). This move, according to an official statement, paves the way for stricter supervision of high-risk entities in the financial sector, including crypto service providers.

Establishment of AMLA
The new authority, funded from the EU budget, will work closely with national authorities to strengthen oversight mechanisms. It will play a crucial role in the coordination of financial intelligence units and support the supervision of the non-financial sector.

Extended Competencies
The AMLA will not hesitate to impose pecuniary sanctions in case of non-compliance with the rules, having powers over certain credit and financial institutions, including those that operate with cryptocurrencies.

Cross-border surveillance
The Authority will take care of the selection of high-risk institutions operating in several Member States. AMLA's surveillance teams will carry out assessments and inspections of up to 40 groups and entities in the first phase.

Role in the Non-Financial Sector
For the non-financial sector, AMLA will provide support and investigate violations, but will not have a mandatory role. Voluntary formation of a college for non-financial entities with cross-border activity will be possible.

Monitoring of Internal Policies
AMLA will verify that selected entities comply with asset freeze and forfeiture policies as part of financial sanctions.

Organisational structure
AMLA will have a general council, with representatives from all member states, and an executive board for management, consisting of the Authority's president and five independent members.

Whistleblowing Mechanism
The agreement introduces a strengthened mechanism for reporting irregularities, focusing on reports from the financial sector and possible reports from employees of national authorities.

The conclusion and approval of the provisional agreement are the next steps, after which the texts will be formally adopted by the Council and the European Parliament. This initiative marks an important step in the regulation and supervision of the crypto market in the EU, underscoring the bloc's commitment to a safer and more transparent financial sector.

Source: cryptonita.ro