The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) and the European Central Bank (ECB) have signed a Memorandum of Understanding establishing a framework for cooperation and information exchange to enhance supervisory effectiveness and avoid duplication between prudential and anti-money laundering supervision. The agreement is positioned to support coordination where AMLA’s direct supervision of “selected obliged entities” intersects with the ECB’s prudential oversight of banks. AMLA’s selected obliged entities include payment institutions, crypto-asset service providers and, in some cases, banks also subject to ECB prudential supervision, which already incorporates AML/CFT considerations. The framework commits both institutions to pursue consistent policy approaches and supervisory standards where these affect the other’s mandate, and to cooperate where appropriate on supervisory measures related to internal controls and governance and on sanctions, including situations where serious AML/CFT breaches could require restricting an institution’s business or withdrawing licences. Regular discussions and reciprocal observation of relevant Board meetings are envisaged, and the MoU fulfils the Article 92(3) AMLA Regulation requirement for a supervisory cooperation agreement under the EU anti-money laundering package.