Introduction to the Anti-Money Laundering Authority (AMLA)
The newly established Anti-Money Laundering Authority (AMLA) of the European Union has alerted both regulators and businesses engaged in virtual asset services, including cryptocurrency exchanges and custodial wallets, regarding pressing compliance requirements. Bruna Szego, who chairs the AMLA, emphasized the importance of safeguarding the European market from threats related to money laundering and terrorism financing associated with cryptocurrency operations.
Responsibilities and Compliance Requirements
Operating from Frankfurt since the beginning of this month, the AMLA has the critical responsibility of ensuring that all 27 EU member states adhere to its comprehensive array of anti-money laundering legislation. In a conversation with The Financial Times, Szego outlined the necessity for regulators to thoroughly investigate the ownership structures of crypto service providers, explicitly identifying their shareholders and their locations. She stated,
“We need to ensure that owners are not implicated in activities related to money laundering or financing terrorism.”
Challenges in the European Cryptocurrency Landscape
Szego also highlighted unique vulnerabilities within the European cryptocurrency landscape, pointing to varying controls among EU nations and the fragmented nature of the market where numerous firms seek regulatory approval under the Markets in Crypto-Assets (MiCA) framework. She expressed concern over the inconsistent application of rules by national authorities, which could exacerbate these risks.
Expert Insights on Compliance
Legal expert Anna Holmes, a senior associate at UK law firm Kingsley Napley, advised crypto entities to familiarize themselves with AMLA’s expectations across different jurisdictions, cautioning that compliance requirements could substantially vary by country. According to Holmes, AMLA’s strong stance on cryptocurrency-related anti-money laundering efforts mirrors the rigorous measures employed by other regulatory bodies, including the UK’s Financial Conduct Authority (FCA).
New Regulations and Enforcement Timeline
Under the newly implemented AML regulations in Europe, cryptocurrency service providers will be banned from engaging with anonymous wallets and privacy-focused coins. Furthermore, Virtual Asset Service Providers (VASPs) will be obligated to furnish government agencies, including various Financial Intelligence Units across the EU, with immediate, unfiltered access to crypto account data. These regulations are set to be fully enforced by July 2027.
Previous Inquiries and Penalties
Cryptocurrency firms in Europe have previously faced significant anti-money laundering inquiries. For instance, Binance faced a €3.3 million penalty from the Dutch central bank in July 2022 for non-compliance with AML registration processes. Additionally, in January 2025, French authorities initiated an investigation into Binance over potential links to terrorist financing, alongside accusations of drug trafficking and tax evasion.
