European Central Bank (ECB) Banking Supervision and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) have signed a Memorandum of Understanding setting out how they will cooperate and exchange information to strengthen supervisory effectiveness and avoid duplication between prudential and anti-money laundering supervision. The framework covers regular collaboration on policies and supervisory standards, with a focus on consistency where one authority’s approach affects the other’s mandate. Cooperation may extend to coordinated supervisory measures on internal controls and governance and, where relevant, sanctions, including situations involving serious AML/CFT breaches that could lead to restricting business activities or withdrawing licences. The MoU also provides for ongoing discussions on shared topics and reciprocal observation of relevant Board meetings. The agreement fulfils the requirement under Article 92(3) of the AMLA Regulation and is linked to the EU anti-money laundering package. AMLA’s remit includes direct supervision of “selected obliged entities” exposed to cross-border money laundering risks, including payment institutions, crypto-asset service providers and, in some cases, banks that are also under the ECB’s prudential supervision; AMLA is expected to begin direct supervision by January 2028.