Germany’s funds association BVI has welcomed the EU’s decision to locate a new anti-money laundering authority (AMLA) in Frankfurt.
“The EU made the right choice with Frankfurt because EU authorities complement each other here in a meaningful way, enabling close dialogue between all parties involved and cost savings,” said Thomas Richter, chief executive of the BVI. “Frankfurt is thus expanding its strength as financial centre in Europe.”
The German city managed to beat off rival bids from other European cities, including Dublin, Paris, Madrid and Rome.
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The decision was the result of a change in the voting process for locating new EU agencies which saw the European Parliament involved as opposed to a unilateral decision made by the European Council.
The idea of a new authority for dirty money was proposed by the European Commission back in 2021 following a number of money laundering scandals.
The motion was agreed by EU member states in December 2023 with Spanish MEP Eva Maria Poptcheva stating that “AMLA will be a game changer to crack down on dirty money in the EU”.
The decision is also a big win for Frankfurt which has also set its sights on a bigger prize – the multibillion euro clearing market.
The clearing of Euribor futures and euro-denominated interest rate swaps currently takes place in London. However, since Brexit, the EU has been looking to relocate the clearing of these instruments to Frankfurt.