Europe’s new Anti-Money Laundering Authority (AMLA) is calling on the crypto sector and other regulators to ensure firms are complying with their obligations to guard against money laundering and other forms of financial crime.
AMLA, which launched July 1, said crypto firms are highly exposed to significant financial crime risks given their features, ability to facilitate anonymity and cross-border operations.
“We welcome the development of new technologies and business models. However, it is essential that in the light of a new regulatory framework and major transformation of the crypto-assets sector, Europe is adequately protected from the risks of money laundering and terrorist financing stemming from this sector,” said Bruna Szego, chair of AMLA, in a release.
Against that backdrop, the crypto sector features prominently in its initial work program, the agency said, adding that it will put a “strong emphasis” on crypto firms properly implementing standards to combat these risks.
Additionally, the agency said it will examine crypto asset-related financial intelligence in its initial joint analyses, “targeting cross-border typologies and emerging risks in this fast-evolving domain.”
With crypto firms now starting to register under the region’s new regulatory framework — the Markets in Crypto-Assets Regulation (MiCA) — AMLA said it will work closely with other pan-European authorities and national regulators to coordinate efforts.
Some larger crypto firms have already been licensed, and AMLA said it expects the number of licensed firms to “increase considerably.”
As more firms register, “there is a risk of diverging application of AML/CFT requirements and inconsistent controls,” the agency warned, calling on regulators to ensure crypto firms are meeting standards from “day one of their authorization.”
AMLA said it will develop plans to promote high standards to meet that goal.