Authority for Anti-Money Laundering and Countering the Financing of Terrorism and European Central Bank sign Memorandum of Understanding to coordinate AML/CFT and prudential supervision

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 setting out how they will cooperate and exchange information to strengthen supervisory effectiveness, improve efficiency and avoid duplication between AML/CFT and prudential supervision. The framework is intended to support coordination where mandates overlap, including for AMLA’s direct supervision of “selected obliged entities” exposed to cross-border money laundering risks, such as payment institutions, crypto-asset service providers and, in some cases, banks also subject to ECB prudential supervision. It sets principles for information exchange, regular dialogue, alignment of policy approaches and supervisory standards where relevant to the other institution’s mandate, and cooperation on supervisory measures and sanctions related to internal controls and governance, including potential restrictions on business or licence withdrawals in cases of serious AML/CFT breaches. The MoU was concluded under the EU anti-money laundering package and fulfils the requirement in Article 92(3) of the AMLA Regulation for AMLA and the ECB to establish a supervisory cooperation agreement.