EU Anti-Money Laundering Reform

The key challenge lies in the relationship between Brussels and national supervisory authorities. The AMLA should establish clear responsibilities with national authorities to avoid duplication of work. At the same time, it must ensure that information flows more quickly across borders and that joint analyses are carried out according to clear standards.

Another focus is digitalisation. AMLA must use artificial intelligence and modern data analysis to identify risks at an early stage. ‘Only with innovative methods of data analysis can new types of money laundering and terrorist financing be identified at an early stage,’ explains Kotowski. At the same time, supervision must not remain stuck in banking logic. Real estate transactions, cryptocurrencies and crowdfunding have long been gateways for illegal cash flows. Copying banking regulations in this area only creates bureaucracy instead of effective control. In the area of crypto-assets in particular, clear rules are needed based on the principle of equal risk, equal regulation.

Kotowski warns: ‘Now is the time to decide whether the EU will become the global standard-setter in money laundering prevention. This requires a willingness to innovate, strong supervision and rules that work in practice.’