European Council, Parliament Agree on New AML Authority

The European Council and the European Parliament have announced a provisional agreement on a new authority to given anti-money laundering rules and supervise the EU's enforcement of its anti-money laundering and terrorism financing laws. The authority will have "direct and indirect supervisory powers over high-risk obliged entities in the financial sector," and will look to increase the efficiency of the anti-money laundering framework, the council said Dec. 13.

The EU said the authority will directly supervise certain financial institutions, including crypto-asset service providers considered high risk or operating across borders, the council said. It will also conduct assessments and inspections of up to 40 credit and financial institutions deemed high risk, the council said. The agreement now heads to member states for approval.