EU Policy En o cemen and An i-Money
Launde ing O e haul in he EU – A New
Analy ical App oach
Resea ch Pape No. 2 - 2025
Au ho s
Ch is y Ann Pe i and Niki a Di issenko
D . Ch is y Ann Pe i is an Assis an P o esso a he School o Law and Go e nmen o Dublin Ci y Uni e si y
(DCU) and Depu y Di ec o o he DCU B exi Ins i u e. She is he Di ec o o he An i-Money Launde ing
Academy (2025) o he Flo ence School o Banking and Finance (FBF) a he Eu opean Uni e si y Ins i u e
(EUI).
D . Niki a Di issenko is an Assis an P o esso a he In e na ional and Eu opean Law Depa men (IER) o he
U ech Uni e si y School o Law. His esea ch ocuses on he in e sec ion o digi al inance, egula ion and
echnological
Inno a ion.
ch is y.pe i @dcu.ie
n.di [email protected]
1
EU policy en o cemen and An i-Money Launde ing o e haul in he EU –
a new analy ical app oach
Ch is y Ann Pe i and Niki a Di issenko
Abs ac
This pape examines he e ised en o cemen sys em o an i-money launde ing (AML)in he
EU, ocusing on he c ea ion o a new EU agency – he An i-Money Launde ing Au ho i y
(AMLA). The pape asks how he e o med amewo k ensu es a mo e consis en and e icien
AML en o cemen in he EU, compa ed wi h p io egimes. The li e a u e p ima ily examines
agenci ica ion in he EU h ough he dimensions o cen alisa ion/decen aliza ion and
di ec /indi ec en o cemen powe s, howe e , his analy ical lens is incomple e o he e ised
AML en o cemen sys em. We he e o e de ise a hi d dimension o analysing en o cemen
ha elies on ope a ional and collabo a i e in eg a ion h oughou he sys em. This hi d
dimension highligh s speci ic ea u es, namely, how agenci ica ion in a common sys em
enables a sha ed ope a ional esponsibili y, s ee ed by legal and ins i u ional in eg a ion,
common me hodologies and p ac ices. These ea u es bind he a ious ac o s oge he ,
mo ing beyond a ne wo k model based on coo dina ion owa ds a mo e ha monised and
coope a i e sys em o en o cemen . The h ee-dimensional (3D) model se es as an analy ical
app oach o s udying he EU en o cemen egime o AML, one ha could also be used in
o he a eas o EU policy en o cemen .
Keywo ds
Agenci ica ion, an i-money launde ing, AML Au ho i y (AMLA), en o cemen , supe ision.
Acknowledgmen
s
The au ho s wish o hank La issa Campos o he suppo in isual designing, as well as Mi a
Schol en and Lise e Mus e o hei hough ul eedback on an ea lie e sion. All e o s
emain he au ho s’ esponsibili y.
I
.
In oduc ion
The c ea ion o he new Eu opean Union (EU) agency – he Au ho i y o An i-Money
Launde ing and Coun e ing he Financing o Te o ism (AMLA) – o e s a unique oppo uni y
o e isi and examine he app oach o EU en o cemen , in pa icula he long-s anding
2
phenomenon o agenci ica ion.
1
A he i s glance he es ablishmen o AMLA appea s o
cons i u e (ye ano he ) ins ance o ‘Eu opeanisa ion’ o en o cemen in an EU policy a ea in
which he en o cemen egime p e iously elied p ima ily on na ional au ho i ies and has
p o en o be ine ec i e. In i s 2019 epo , he Eu opean Commission iden i ied se e al
sho comings and p oblem d i e s s emming om he AML decen alised en o cemen
mechanism.
2
The epo ha unde pinned he 2021 AML package
3
was based on 10 case
s udies ac oss ele en Membe S a es be ween 2012 and 2018.
4
A mo e in e wined app oach
be ween EU and na ional le el had been missing despi e i s clea necessi y and was
conside ed oo bold a mo e only a decade ago when EU legisla o s unde ook he e o m om
AMLD4 o AMLD5 and in he con ex o he Eu opean Supe iso y Au ho i ies (ESAs) Re iew.
5
We may wonde wha is special abou ha new EU agency se up by he co-legisla o s,
conside ing he cu en policymake s’ emphasis on he g oundb eaking na u e o he c ea ion
o AMLA, and compa ed o he ESAs.
6
The no el y may be linked o he speci ic sec o (AML)
i sel which equi es he con inuous sha ing o in elligence and in o ma ion, as well as he
in e dependence o ac o s in he sys em. The powe s alloca ed o AMLA and he supe iso y
au ho i ies in he sys em aim a ensu ing ‘consis en high-quali y applica ion o he AML/CFT
supe iso y me hodology and p omo [ing] e icien coope a ion be ween all ele an
compe en au ho i ies.’
7
In his ega d, he co-legisla o s ag eed, h ough AMLA Regula ion, o
cons i u e an ‘AML/CFT Supe iso y Sys em’
8
designed wi h bo h AMLA and he AML/CFT
supe iso y au ho i ies, which, we a gue is con ibu ing o u he ope a ional and
collabo a i e in eg a ion.
1
Mi a Schol en, Ma loes an Rijsbe gen, (2014) The Limi s o Agenci ica ion in he Eu opean Union, 15(7) Ge man
Law Jou nal,1223-1255; see, also, Da id Le i-Fau , (2011) Regula o y ne wo ks and egula o y agenci ica ion:
owa ds a Single Eu opean Regula o y Space, 18(6) Jou nal o Eu opean Public Policy, 810-829.
2
Eu opean Commission, ‘Repo om he Commission o he Eu opean Pa liamen and he Council on he
Assessmen o Recen Alleged Money Launde ing Cases In ol ing EU C edi Ins i u ions’ (2019) COM(2019) 373
inal 23 <h ps://eu -lex.eu opa.eu/legal-con en /EN/TXT/PDF/?u i=CELEX:52019DC0373> accessed 3 June
2025; Eu opean Commission, ‘Communica ion om he Commission o he Eu opean Pa liamen and he Council,
Towa ds Be e Implemen a ion o he EU’s An i-Money Launde ing and Coun e ing he Financing o Te o ism
F amewo k (COM(2019) 360 Final); Eu opean Commission, ‘Impac Assessmen Accompanying he An i-Money
Launde ing Package’ [2021] SWD(2021) 190 inal 13–19.
3
Regula ion (EU) 2024/1620 o he Eu opean Pa liamen and o he Council o 31 May 2024 es ablishing he An i-
Money Launde ing and Coun e -Te o is Financing Au ho i y (AMLA); Regula ion (EU) 2024/1624 o he Eu opean
Pa liamen and o he Council o 31 May 2024 on he p e en ion o he use o he inancial sys em o he pu poses
o money launde ing o e o is inancing (AMLR); Di ec i e (EU) 2024/1640 o he Eu opean Pa liamen and o he
Council o 31 May 2024 on mechanisms o be implemen ed by Membe S a es o p e en he use o he inancial
sys em o he pu poses o money launde ing o e o is inancing (AMLD 6).
4
The Commission’s 2019 epo on egula o y and supe iso y agmen a ion in AML/CFT highligh ed majo
di e gences in he applica ion o he p io AML/CFT egula o y and supe iso amewo k aised a s uc u al
p oblem exhibi ing he incapaci y o he Union o p o ec he in eg i y o i s inancial sys em. This cons i u ed a
s ong inadequacy o he AML/CFT en o cemen egime, pa icula ly seen in he con ex o he Single Supe iso y
Mechanism in place o nea ly a decade. See, Eu opean Commission, ‘Communica ion om he Commission o he
Eu opean Pa liamen and he Council, Towa ds Be e Implemen a ion o he EU’s An i-Money Launde ing and
Coun e ing he Financing o Te o ism F amewo k (COM(2019) 360 Final)’.
5
The e ision o he 4 h AML Di ec i e (Di ec i e (EU) 2015/849) was ini ia ed in 2013 wi h he 5 h AML Di ec i e
(Di ec i e (EU) 2018/843) adop ed in 2018.
6
The Join S a emen and Common App oach on decen alised agencies is s ill a e e ence poin . See Join
S a emen and Common App oach o he Eu opean Pa liamen , he Council o he Eu opean Union and he
Eu opean Commission o 19 July 2012 on decen alised agencies. See Reci al 6 o AML Au ho i y Regula ion.
7
Reci al 16, AMLA Regula ion.
8
Sec ion 2, AMLA Regula ion.
3
The e o e, we conside ha he no el y o he e ised AML/CFT en o cemen egime and i s
in eg a ed sys em go beyond a simple u he cen alisa ion o AML/CFT supe ision and
di ec en o cemen , anscending a bina y app oach. Ins ead, he egime is illus a i e o a
mo e signi ican ans o ma ion which combines and in eg a es – wi hin a 3D en o cemen
model ha we pu o wa d – he ‘bina y’ app oaches o cen alisa ion and decen alisa ion,
and o di ec and indi ec ec o s o EU en o cemen , oge he wi h a hi d dimension o
ope a ional and collabo a i e in eg a ion. The eby, we o e an o iginal way o examining EU
en o cemen building on schola ship on agenci ica ion and EU policy en o cemen , and
answe he main ques ion: how does he e o med AML amewo k ensu e mo e consis en
and e icien en o cemen in he EU? To his end, we examine he powe s and asks as
a ibu ed and sha ed wi hin he AML en o cemen sys em. This hi d dimension in EU
en o cemen also o e s a use ul analy ical ool o legal schola s and policy-make s aiming o
s udy EU en o cemen egimes conside ing i s po en ial eplicabili y in o he policy a eas.
The hi d dimension embodies he essen ial con ibu ions and oles o join supe ision eams
and analyses, pee coo dina ion, and sha ed in elligence ac oss he AML sys em.
9
This
essen ial dimension is legally s uc u ed and ins i u ionalised unde he e ised AML egime
wi h a de e ence and puni i e unc ion, some discipling de ice and common me hodologies
and supe iso y app oaches o he whole sys em. We concep ualise his hi d dimension as
a componen o a h ee-dimensional (3D) s uc u e o he AML en o cemen sys em in he EU
– besides he (in)di ec en o cemen and he (de)cen alisa ion dimensions.
As such, we a gue ha his addi ional dimension shows how agenci ica ion in a common
sys em allows mo ing along om me e coo dina ion o ope a ional and collabo a i e
in eg a ion. Such ope a ional in eg a ion no only akes place a agency le el bu also wi hin
he sys em, because all ac o s a e equally in ol ed in common endea ou s, wi h a sha ed
esponsibili y, and s ee ed by common me hodologies. These ‘ hi d dimensional’ ea u es o
he e ised AML en o cemen sys em c ea e and sus ain a connec i e issue ha ies oge he
he di e en pa s in he en o cemen sys em. In his ega d, he new AML in eg a ed sys em
goes way beyond a ne wo k-based en o cemen model – which would ha e limi ed capaci y
o en o ce decisions p ima ily due o i s in o mali y.
10
The hi d dimension hus cons i u es an
o ganisa ional dimension aimed a os e ing a ha monised and coope a i e sys em o
en o cemen .
The pape is s uc u ed as ollows. Fi s , we o e (II) an o e iew o he agenci ica ion end
and he concep ualisa ion o EU en o cemen in he li e a u e. We hen o e (III) a de ailed
examina ion o he powe s and asks unde he e o med AML en o cemen sys em. We
sugges (IV) a new way o concep ualise en o cemen in he EU as a 3D s uc u e and highligh
9
Reci als 16 and 27, and A icle 7, AMLA Regula ion.
10
See discussions in sec ion II.
4
he bene i s o his analy ical ool o be e comp ehend EU en o cemen in a gi en EU policy
a ea. The las sec ion (V) concludes.
II
.
Concep ual
app oach
es
o
EU
en o cemen
Schola ship on en o cemen in EU Law has de eloped a ious app oaches o desc ibe and
examine en o cemen egimes. This sec ion highligh s he main ypes o EU en o cemen
models (1.) and discusses key ec o s ha help o analyse and be e comp ehend
en o cemen in he EU (2.).
1.
The ypes o en o cemen models
in EU Law
This subsec ion gi es a b ie o e iew o he mo e ecen li e a u e on EU en o cemen models.
Schol en, and la e Van K eij, dis inguish be ween he h ee main modes o egimes o
en o cemen a he disposal o he EU.
11
The i s and he mos con en ional o de aul egime,
is ha whe e he EU elies on he Membe S a e’s en o cemen au ho i ies o implemen and
en o ce EU policies. As such, his egime is decen alised (no single au ho i y bu mul iple
au ho i ies) and is also indi ec , meaning ha he EU en o cemen au ho i ies o ins i u ions do
no en o ce EU policies di ec ly agains ci izens o en i ies.
12
The second ype o he
en o cemen egime is one cen ed a ound en o cemen ne wo ks.
13
These consis o na ional
en o cemen agencies, bu nodes o hese ne wo ks may, and o en do, comp ise he
Eu opean Commission o specialised EU agencies - al hough wi h limi ed di ec en o cemen
powe s. The hi d ype is he egime wi h en o cemen esponsibili ies es ed in an EU agency.
This egime usually implies indi ec and/o di ec powe s gi en o an EU agency (o ins i u ion),
whe e he la e o e sees and coo dina es en o cemen by Membe S a e au ho i ies, o
di ec ly en o ces EU law agains ci izens o en i ies.
14
Van K eij ap ly no es, howe e , ha he dis inc ions be ween he h ee en o cemen egimes
a e o en ‘blu ed in p ac ice’, and o en he egimes coexis .
15
Fo one, hese egimes a e no
always limi ed o en o cemen asks alone, and include o he unc ions, such as coo dina ion,
bu also ad iso y o ulemaking unc ions. Addi ionally, in many cases egimes coexis wi hin
11
Mi osla a Schol en, (2017) “Mind he end! En o cemen o EU law has been mo ing o ‘B ussels’”, 24(9)
Jou nal
o Eu opean Public Policy
, 1348-1366; Lau ens Van K eij, (2019) “Towa ds a Comp ehensi e F amewo k o
Unde s anding EU En o cemen Regimes”, 10(3)
Eu opean Jou nal o Risk Regula ion
, 439-457.
12
Lau ens Van K eij (n 11), 441.
13
Kei h G P o an and Robin H Lemai e, ‘Co e Concep s and Key Ideas o Unde s anding Public Sec o
O ganiza ional Ne wo ks: Using Resea ch o In o m Schola ship and P ac ice’ (2012) 72 Public Adminis a ion
Re iew 638; Kei h G P o an and Pa ick Kenis, ‘Modes o Ne wo k Go e nance: S uc u e, Managemen , and
E ec i eness’ (2008) 18 Jou nal o Public Adminis a ion Resea ch and Theo y 229; Paul C aig,
Sha ed
Adminis a ion and Ne wo ks: Global and EU Pe spec i es
(Ha Publishing 2011)
<h p://www.bloomsbu ycollec ions.com/book/ alues-in-global-adminis a i e-law> accessed 30 July 2018;
Renaud Dehousse, ‘Regula ion by Ne wo ks in he Eu opean Communi y: The Role o Eu opean Agencies’ (1997) 4
Jou nal o Eu opean Public Policy 246; Wal e Powell, ‘Nei he Ma ke no Hie a chy: Ne wo k Fo ms o
O ganiza ion’ (1990) 12 Resea ch in O ganiza ional Beha io 295.
14
Lau ens Van K eij (n 11), 441-442.
15
Ibid, 442.
5
one policy a ea wi hou ully eplacing o e adica ing each o he . Thi dly, o en he EU au ho i y
and hei asks (e.g. by he Eu opean Commission) anscend mul iple en o cemen egimes.
16
Schol en and O ow dis inguish be ween ypes o en o cemen models based on he amoun
o asks gi en om he na ional o he EU le el. The au ho s dis inguish be ween ou models
anging om S (small), M (medium), L (la ge), and XL (ex a-la ge) en o cemen models.
17
The
pa icula cha ac e is ics o hese models a e ins i u ional cha ac e is ics o coope a ion (e.g.
choices be ween a ne wo k and an EU agency) and unc ional cha ac e is ics ( he deg ee o
sha ing and di ision o powe s). These ou sizes also demons a e a ious ‘deg ees o
Eu opeanisa ion’, om he smalle o he highe deg ee.
Disc epancies in he p ac ice o en o cemen , bu also in he en o cemen chain and
implemen a ion, including sanc ioning b eaches, ha e been a ibu ed o he ‘ ac u ed’
sys em o hie a chical and ins i u ional di isions, and di ided compe ences.
18
In his con ex ,
Ve aele discusses ‘sha ed’ en o cemen based on a ‘ne wo k-model’, whe eby na ional
egula o y and en o cemen agencies and he Eu opean Commission play he key ole in
ensu ing ansna ional coope a ion and coo dina ion equi ed o he e ec i e en o cemen
o EU policies.
19
Schol en, Luch man and Schmid also asse ha no EU en o cemen
au ho i y can unde any legisla i e o ins i u ional design eplace na ional en o cemen
au ho i ies in hei en i e y, hus emphasising he sha ed na u e o EU policy en o cemen .
20
Inhe en challenges o sha ed en o cemen in he EU include he need o c ea ing common
(o sha ed) e minology, bu also sha ed en o cemen p ac ices and s a egies.
21
The p ism o
sha ed en o cemen has hus been used o analyse he challenges s emming om he
alloca ion o powe s and asks be ween di e en au ho i ies in EU policy en o cemen .
22
Finally, Ho mann and Tü k desc ibe he EU law and policy en o cemen as an in eg a ed
model, which hey de ine as ’ he e olu ion o legal, poli ical and adminis a i e condi ions o
adminis e ing join policies’.
23
The in eg a ed model o en o cemen e lec s he unc ional
need o u he coope a ion, mo ing away om me e coo dina ion, o secu e he uni o m
16
Ibid.
17
Mi osla a Schol en, Anne je O ow, (2014) “Ins i u ional Design o En o cemen in he EU: The Case o Financial
Ma ke s”, 10(5)
U ech Law Re iew
, 80-91.
18
John A. E. Ve aele, Sha ed Go e nance and En o cemen o Eu opean Law: F om Comi ology o a Mul i-le el
Agency S uc u e?, in Ve aele, J.A.E.
EU Commi ees: Social Regula ion, Law and Poli ics
, Ha Publishing 1999,
130.
19
Ibid, 139; see, also, Lau ens an K eij, (2022) En o cing EU policies: why do EU legisla o s p e e new ne wo ks o
na ional au ho i ies and no exis ing EU agencies?, Jou nal o Eu opean Public Policy, 29:10, 1568-1589.
20
Mi osla a Schol en, Michiel Luch man and Elma Schmid , “The p oli e a ion o EU en o cemen au ho i ies: a
new de elopmen in law en o cemen in he EU”, in Mi osla a Schol en and Michiel Luch man (eds),
Law
En o cemen by EU Au ho i ies
(Edwa d Elga , 2017), 3.
21
Mi osla a Schol en (n 11), 1360; also, in he con ex o EU c iminal law, see Michiel Luch man and John Ve aele,
(2014) ‘Eu opean agencies o c iminal Jus ice and sha ed en o cemen (Eu ojus and he Eu opean Public
P osecu o ’s O ice)’, 10(5) U ech Law Re iew, 132–50.
22
See, o ins ance, Mi osla a Schol en, EU (sha ed) Law En o cemen : Who Does Wha and How?, in S e ano
Mon aldo, F ancesco Cos amagna, Albe o Miglio (eds.),
EU Law En o cemen
(Rou ledge 2021), 7 – 23.
23
He wig Ho mann and Alexande Tü k, In oduc ion: owa ds a legal amewo k o Eu ope’s in eg a ed
adminis a ion, in He wig Ho mann and Alexande Tü k,
Legal Challenges in EU Adminis a i e Law
: Towa ds an
In eg a ed Adminis a ion
(Edwa d Elga 2009), 1-6.
6
implemen a ion o EU legisla ion. This concep ion ames EU en o cemen no as a
con en ional mul i-le el o hie a chical sys em bu a he as ‘a sys em o in eg a ed le els’.
24
2.
Main ea u es o
EU
en o cemen
A se o ea u es de ine en o cemen models in he EU as examined by legal schola ship. The
inqui y in o EU policy en o cemen can be amed a ound wo main ec o s: i s , (a) he deg ee
o cen alisa ion, which depends on he necessi y o mo e ha monisa ion and consis ency o
en o cemen , be e coo dina ion and coope a ion be ween en o cemen au ho i ies – which
ha e been p ima ily concep ualised h ough ‘Eu opeanisa ion’ and ‘agenci ica ion’. Second,
(b) he exis ence o powe s and asks exe ed by EU agencies, which ep esen s a spec um
om indi ec o di ec en o cemen .
a.
EU en o cemen egime ends: cen alisa ion,
Eu opeanisa ion
and
agenci ica ion
Eu opeanisa ion – o he p ocess o shi ing na ional supe iso y powe s and compe ences o
he EU le el – implies “an ins i u ional e olu ion and unc ional ans o ma ion”,
25
exhibi ing a
end ac oss many domains including inance. Schol en and O ow desc ibe i as a shi om
ne wo ks o na ional en o cemen agencies o a mo e cen alised s uc u e o agencies and
ins i u ions a EU le el.
26
This shi in he ins i u ional se -up would o en be accompanied by
he inc ease in legally binding and di ec powe s o EU agencies and EU ins i u ions, including
supe iso y, egula o y and sanc ioning powe s.
The end owa ds Eu opeanisa ion o supe ision and en o cemen , ha is so isible in he
EU’s inancial sec o ,
27
s ems om he need o e e g ea e coo dina ion and coope a ion in
en o cemen . Van K eij unde sco es inc eased cen alisa ion o EU policy en o cemen due o
he shi om Membe S a e en o cemen o g owing eliance and b oade esponsibili ies
es ed in EU en o cemen ne wo ks and EU agencies.
28
In ou unde s anding, howe e ,
ne wo k-based en o cemen aces se e e limi s, conside ing i s in o mali y and unc ioning
based on coo dina ion, p ima ily, and ai h ul coope a ion among s akeholde s.
29
The deg ee
24
Ibid, 2.
25
Mi osla a Schol en, Anne je O ow (n 17), 86.
26
Ibid.
27
Sil ia Alleg ezza and G azia B uzzese, ‘Supe ision and En o cemen o EU’s An i-Money-Launde ing and
Coun e ing he Financing o Te o ism’,
EU Banking and Capi al Ma ke s Regula ion
(Palg a e Macmillan, Cham
2025) <h ps://link.sp inge .com/chap e /10.1007/978-3-031-70529-8_14> accessed 9 Sep embe 2025. Sophie
Vua lo -Dignac and Eugenia Si acusa, ‘The Eu opean Sys em o Financial Supe ision and in Pa icula he
Eu opean Secu i ies and Ma ke s Au ho i y’ in Fede ico Fabb ini and Ma co Ven o uzzo (eds),
Resea ch Handbook
on EU Economic Law
(Edwa d Elga Publishing 2019); Gianni Lo Schia o and Alexande Tü k, ‘The Ins i u ional
A chi ec u e o EU Financial Regula ion: The Case o he Eu opean Supe iso y Au ho i ies in he A e ma h o he
Eu opean C isis’ in Leila Simona Talani (ed),
Eu ope in C isis
(Palg a e Macmillan UK 2016)
<h p://link.sp inge .com/10.1057/978-1-137-57707-8_5> accessed 2 Augus 2018; Giulio Vespe ini and Edoa do
Chi i,
The Adminis a i e A chi ec u e o Financial In eg a ion
: Ins i u ional Design, Legal Issues, Pe spec i es
(Socie à edi ice Il Mulino 2015).
28
Lau ens Van K eij (2019), 441.
29
L Ga icano and RM Las a, ‘Towa ds a New A chi ec u e o Financial S abili y: Se en P inciples’ (2010) 13 Jou nal
o In e na ional Economic Law 597, 620.
7
o Eu opeanisa ion is mos o en sec o -speci ic,
30
and depends he e o e on he EU policy
a ea, e.g. in compe i ion law, da a p o ec ion, ene gy.
Despi e he need o sec o -speci ic app oaches, EU policy en o cemen egimes showcase
wo main ends. Fi s , he push owa ds u he cen alisa ion, including ia agenci ica ion,
add essed an inc easing need o os e collabo a ion and coo dina ion in en o cemen , and
accompanied a shi away om decen alised en o cemen , and ne wo k-based
en o cemen , o EU supe iso y au ho i ies o agencies.
31
Second, he cen alisa ion end is
suppo ed by an inc ease in di ec en o cemen . In his ega d, he ‘hub and spoke app oach’
32
is an EU-le el en o cemen model ha elies on an agency and combines coo dina ion and
o e sigh o he wo k o na ional au ho i ies, wi h di ec powe s o supe ise some o he
egula ed en i ies, (see u he in sec ion IV below).
b.
F om indi ec o di ec en o cemen powe s
and co esponding asks
Indi ec en o cemen by an EU ins i u ion/agency consis s in moni o ing he pe o mance o
en o cemen asks and exe cise o powe s by na ional au ho i ies. Di ec en o cemen , in
con as , p ima ily implies ha an EU en o cemen au ho i y has powe s o moni o
compliance wi h legal ules and egula o y equi emen s by p i a e ac o s, as well as o
in es iga e and sanc ion iola ions o EU law by hose p i a e ac o s.
33
While decen alised en o cemen model elies on di ec en o cemen powe s es ed in
na ional en o cemen au ho i ies, shi o powe s o he EU le el can ei he main ain such a
decen alised model wi h EU agencies and EU ins i u ions me ely assuming indi ec powe s,
o be accompanied wi h he a ibu ion o di ec en o cemen powe s o he EU le el.
Thus, a cen alised en o cemen model can imply ei he indi ec o di ec en o cemen powe s
es ed in he EU agency (o ins i u ion). In he o me si ua ion as said abo e, he EU agency
only o e sees and coo dina es en o cemen ha is p ima ily ensu ed by na ional au ho i ies,
while in he la e , he agency di ec ly en o ces EU law agains p i a e. Such a model -
conside ed an ‘EU agency-led’ model - has, in eali y, a blend o indi ec and indi ec powe s
(see sec ion IV).
Di ec powe s o an EU agency can span om moni o ing o in es iga ion and sanc ioning.
34
Moni o ing powe s can he eby amoun o he p ocess o ongoing supe ision o a speci ic
30
Madeleine de Cock Buning, Anne je O ow, John Ve aele, (2014) “Regula ion and En o cemen in he EU:
Regimes, S a egies and S yles”, 10(5)
U ech Law Re iew,
5.
31
See, o ins ance, Me ijn Chamon, (2023). EU Agencies: Shi ing Pa adigms o EU Adminis a ion. EU Law Li e , 4-
8; also, Da id Le i-Fau , (2011).
32
EBA, ‘Response by he EBA o he Eu opean Commission’s Public Consul a ion on an AML/CFT Ac ion Plan and
he Es ablishmen o an EU Le el AML/CFT Supe iso ’ (2020) 13–14.
33
Mi osla a Schol en, Michiel Luch man and Elma Schmid (n 23); see also H Ho mann, G Rowe and A Tü k,
Adminis a i e Law and Policy o he Eu opean Union
(OUP 2011).
34
The a ionales o agenci ica ion (and he scope o powe s and unc ions ans e ed o an EU agency) can be
poli ical, ins i u ional and unc ional a ionales, and as such may cons ain he ypes o en o cemen egimes.
These a ionales o gi ing en o cemen asks o EU agencies (as opposed o Membe S a es’ au ho i ies o EU
8
policy a ea, ega dless o whe he he e is a suspicion o iola ion o non-compliance by he
ac o . In es iga ion powe s, in u n, e e o he ac ion au ho i ies can ake in case o
suspec ed in ingemen o he ules. Finally, sanc ioning powe s e e o he o malized
esponse by he en o cemen au ho i ies o an es ablished iola ion and can be es o a i e o
puni i e in hei na u e,
35
and may ha e a de e ence and puni i e unc ion (see sec ion III).
III
.
T
he e o med AML en o cemen sys em
In his sec ion, we examine he e o med en o cemen egime in he AML in eg a ed sys em,
wi h AMLA a i s co e. To his end, we discuss he e o med AML en o cemen egime in ligh
o he objec i es o he sys em (1), hen we analyse he wo pilla s go e nance se -up and join
a angemen s he ein (2) and inally s udy he a ibu ion o asks (wha ?) and co esponding
powe s (how?) o he ele an au ho i ies (3). This legal and ins i u ional analysis suppo s he
hi d dimension in he 3-D en o cemen model pu o wa d in sec ion IV he eina e .
1.
Objec i es o he AML in eg a ed sys em
The analysis o sho comings and p oblem d i e s om he p io AML/CFT amewo k gi es
use ul insigh s in o he objec i es o he e o med AML in eg a ed sys em.
36
S
upe iso y
di e gence was unde sco ed as one co e issue, demons a ing inadequa e and insu icien
supe ision a na ional le el, in pa icula in ela ion o supe iso y au ho i ies,
37
ollowing a
h ee old dimension.
Fi s , he Eu opean Commission iden i ied signi ican di e ences in he imeliness and
e ec i eness o supe iso y ac ions a na ional le el. Due o supe iso y au ho i ies’ di e gen
p io i isa ion and alloca ion o esou ces, he e was a disc epancy in he in usi eness,
in ensi y and equency o AML/CFT supe ision,
38
as well as in he me hods o iden i y isks
and he isk-based app oach.
39
Second, he decen alised AML/CFT supe iso y amewo k
showed an o e eliance o ‘home’ Membe S a e au ho i ies on he ‘hos ’ Membe S a e’s. This
hos coun y app oach
40
mean ha he moni o ing o en i ies’ compliance was based on
ne wo ks) ha e been ex ensi ely discussed in he li e a u e. See Lau ens Van K eij (n 11), 439-457; see, also,
Mi osla a Schol en (n 11), 1348; Lau ens an K eij, (2022) “En o cing EU policies: why do EU legisla o s p e e new
ne wo ks o na ional au ho i ies and no exis ing EU agencies?”, 29(10)
Jou nal o Eu opean Public Policy
, 1568-
1589; on poli ical a ionales, see Lau ens an K eij, (2024) “How Ha e EU Legisla o s Es ablished EU Agencies Wi h
En o cemen Tasks? Case S udies o he Eu opean A ia ion Sa e y Agency and he Eu opean Medicines Agency”,
63(2)
Jou nal o Common Ma ke S udies
, 592; R. Daniel Kelemen, And ew D. Ta an , (2011) “The Poli ical
Founda ions o he Eu oc acy”, 34(5)
Wes Eu opean Poli ics
, 922–947.
35
Madeleine de Cock Buning, Anne je O ow, John Ve aele (n 33), 5.
36
Eu opean Commission, ‘Repo om he Commission o he Eu opean Pa liamen and he Council on he
Assessmen o Recen Alleged Money Launde ing Cases In ol ing EU C edi Ins i u ions’ (n 3) 23; Eu opean
Commission, ‘Communica ion om he Commission o he Eu opean Pa liamen and he Council, Towa ds Be e
Implemen a ion o he EU’s An i-Money Launde ing and Coun e ing he Financing o Te o ism F amewo k
(COM(2019) 360 Final)’ (n 3); Eu opean Commission, ‘Impac Assessmen Accompanying he An i-Money
Launde ing Package’ (n 3) 13–19.
37
The e we e also speci ic indings ela ed o c edi ins i u ions.
38
Eu opean Commission, ‘Repo om he Commission o he Eu opean Pa liamen and he Council on he
Assessmen o Recen Alleged Money Launde ing Cases In ol ing EU C edi Ins i u ions’ (n 3) 21.
39
AML A Regula ion p oposal, memo andum o unde s anding
40
Eu opean Commission, ‘Repo om he Commission o he Eu opean Pa liamen and he Council on he
Assessmen o Recen Alleged Money Launde ing Cases In ol ing EU C edi Ins i u ions’ (n 3) 22.
15
add essed o hem).
86
Thi dly, pe iodic penal y paymen s a e adop ed o compel he obliged
en i y o pu an end o a b each a e a ailu e o comply wi h p io adminis a i e measu es,
o o compel na u al pe son o p o ide u he in o ma ion, da a, p ocedu es o o he ma e ial
in he con ex o an in i a ion.
87
I compa ed wi h pecunia y sanc ions and adminis a i e measu es in he legal amewo k
88
he e is no exp ess dissuasi e componen as hose pe iodic penal y paymen s a e al eady
ha ing a puni i e unc ion on he obliged en i ies. Howe e , he peculia i y o hose penal ies
is hei po en ial e oac i e e ec ‘up o he da e o applica ion o he adminis a i e
measu e’.
89
This op ion, le open o AMLA,
90
may be consequen ial o he obliged en i y
conce ned by hose penal ies and ac ually adds, by his legal ea u e, a de e ence unc ion
nex o he puni i e e ec o hose measu es. Fu he mo e, penal ies a e also en isaged in he
case o b eaches o bene icial owne ship anspa ency equi emen s,
91
wi h an obliga ion o
Membe S a es o adop he ules applicable o such b eaches and ensu e hei
implemen a ion.
92
In AMLA’s in e ac ions wi h he inancial supe iso s, i s powe o issue eques s o ac and
ins uc ions
93
o ensu e AML/CFT egula o y compliance, and o eques in o ma ion,
94
is wide-
anging and cons i u es an impo an disciplining de ice wi hin he sys em. Fu he mo e, in i s
indi ec o e sigh , AMLA has a powe o eques supe iso s and supe iso y au ho i ies o ac
and can ins uc hem o ake measu es in ela ion o non-selec ed obliged en i ies.
95
In cases
whe e he eques s o ac a e no complied wi h o ele an in o ma ion abou he same a e
no p o ided wi hin 10 wo king days, AMLA may ‘ ake o e ’ he supe ision o hose non-
selec ed obliged en i ies – a e ob aining he pe mission om he Eu opean Commission.
96
Such change in he asks and powe s assumed by AMLA,
in lieu
o he inancial supe iso y
au ho i y, will be empo a y.
Fu he mo e, AMLA will in es iga e sys ema ic supe iso y ailu es, non-applica ion o
inco ec applica ion o EU Law.
97
The sys ema ic ailu es may lead o Commission’s
in ingemen p ocedu es, and issuance o an opinion o compel he supe iso o comply wi h
AMLA’s ecommenda ion.
98
The powe s a ached o he in es iga ion in case o sys ema ic
86
A icles 22 and 6(1) AMLA Regula ion.
87
See A icle 23(1) AMLA Regula ion.
88
See A icles 21, 22 AMLA Regula ion.
89
A icle 23(5) AMLA Regula ion.
90
Indeed, AMLA’s decision o impose a pe iodic penal y paymen ‘
may
be aken a a la e s age wi h e oac i e
e ec …’ (emphasis added), as pe A icle 23(5) AMLA Regula ion.
91
Se ou in Chap e IV, AML Regula ion.
92
A icle 68(1) AML Regula ion.
93
A .6(2)(c) AMLA Regula ion.
94
E.g. e y de ailed p o ision on he eques o s a is ical in o ma ion and in e nal p ocesses o a angemen s o
au ho i ies, h ough s uc u ed ques ionnai es and online/o line ools, see A icle 6(2)(a) AMLA Regula ion.
95
A icle 6(2)(c) AMLA Regula ion.
96
A icle 32(5) AMLA Regula ion. Rega ding he p ocess, see pa ag aphs (6) o (9).
97
A icle 34, see also Reci als 9 and 35 AMLA Regula ion.
98
A icle 34(6) and (7) AMLA Regula ion.
16
ailu es o supe ision
99
a e essen ial o gua an ee he e ec i eness o he AML/CFT
supe iso y sys em.
In he in e ac ions wi h he non- inancial supe iso s hi d,
100
AMLA ha e some powe s o
add ess he ailu es commi ed by au ho i ies b eaching Union law. Following he in es iga ion
o au ho i ies’ po en ial b eaches o non-applica ion o Union law, AMLA can issue some
ecommenda ions wi h emedial ac ions,
101
and some wa nings, in case o non-compliance
wi h he p io ecommenda ions including he measu es ha mus be implemen ed o
mi iga e he e ec s o he b eaches.
102
Ac ually, ano he o ce ul disciplining de ice can be
ound in he publica ion o pee e iews epo s, bo h a EU and in e na ional le el, un eiling
he sho comings along good p ac ices.
103
As AMLA is asked wi h he coo dina ion o pee
e iews o supe iso y s anda ds and p ac ices in AML/CFT in he non- inancial sec o ,
104
his
pee p essu e will begin om he s a o AMLA’s ope a ions, and con ibu es o supe iso y
con e gence (see sec ion d.).
All hese ins umen s s eng hen he de e ence and puni i e unc ion o he EU AML/CFT
en o cemen egime, enhancing i s e ec ac oss Membe S a es and suppo ing supe iso y
con e gence. O e all, he
publica ion
o pecunia y sanc ions, he applica ion o adminis a i e
measu es in ela ion o b eaches,
105
and pe iodic penal y paymen s
106
con ibu es o he
de e ence unc ion conside ing he an icipa ion o i s po en ial impac on he epu a ion and
c edibili y o he obliged en i ies. Mo eo e , he sys ema ic publica ion o na ional and
sup ana ional isk assessmen s
107
exe s a epu a ional o m o de e ence, which can p omp
bo h public au ho i ies and p i a e ac o s o p oac i ely add ess and e ec i ely mi iga e
ML/TF isks. Las ly, an addi ional laye o de e ence in he AML en o cemen a chi ec u e
esides in he po en ial in ingemen p oceedings by he Eu opean Commission.
108
This
sup ana ional o e sigh – upholding he in eg i y o he AML egime – will con ibu e o a mo e
uni o m applica ion and en o cemen o EU AML/CFT ules.
d.
Legal and policy ools o suppo e iciency in en o cemen
The amewo k p o ides o se e al legal and policy ools o suppo e iciency in AML/CFT
en o cemen : s a ing om da a sha ing enhanced a angemen s, including uni ied
me hodologies and common app oaches, as well as a du y o mu ual assis ance.
99
See pa ag aphs 2 o 4 o A icle 34 AMLA Regula ion.
100
He e his includes bo h non- inancial supe iso s and he public au ho i ies ha o e see sel - egula o y bodies.
101
I is also wi hin six mon hs om ini ia ing he in es iga ion, see A icle 37(3) AMLA Regula ion.
102
A icle 5(4)(c) and A icle 37(4) AMLA Regula ion.
103
Reci al 39,
104
A icle 5(4)(b) AMLA Regula ion.
105
I is impo an o signal he co-legisla o s’ app oach o he ‘puni i e and educa ional goal o publica ions’ whe e
p e en i e adminis a i e measu es (be o e any b eaches) a e no published, and he e o e, only he decisions
add essing AML/CFT equi emen s b eaches wi h adminis a i e measu es. See Reci al 105 AMLD6.
106
A icle 58 AMLD6, A icle 25 AMLA Regula ion.
107
See Reci als 14 and 19 and A icles 7 and 8 AMLD6.
108
A icle 78 AMLD6 p o ides a gene al ansposi ion da e by 10 July 2027, wi h a ew de oga ions o dedica ed
p o isions wi h wo ea lie da e and one la e . See he o e iew o na ional ansposi ion on Eu -Lex h ps://eu -
lex.eu opa.eu/legal-con en /EN/NIM/?u i=CELEX:32024L1640 as o 23 June 2025.
17
The da a and in o ma ion sha ing a angemen s a e undamen al o enable AMLA,
supe iso y au ho i ies and FIUs o ca y ou hei esponsibili ies e icien ly, con ibu ing o
be e and as e da a analysis.
109
Fo ins ance, A icle 75 AML Regula ion is pa icula ly
ele an as i conce ns he exchange o in o ma ion in he amewo k o pa ne ships o
in o ma ion sha ing. O e all, he a ionale behind his p o ision is o b eak silos, and o a oid
ha ing in elligence ‘ apped’ in be ween ac o s. The legal a angemen s in his p o ision
should os e da a and in o ma ion sha ing in p ac ice so ha AML/CFT s akeholde s conduc
in elligence sha ing bo h a ope a ional and s a egic le el. Mo eo e , his in o ma ion lowing
among pa ne s acili a es he use o sha ed isk analysis, which also con ibu es o b eaking
silos.
Fu he mo e, AMLA is esponsible, in collabo a ion wi h na ional au ho i ies, o ensu e he
con e gence o supe iso y p ac ices and he p omo ion o high supe iso y s anda ds,
110
which is p ima ily done h ough he adop ion o sys em-wide me hodologies and common
app oaches. AMLA will be esponsible o de eloping a consis en , sys em-wide supe iso y
me hodology, in coope a ion wi h supe iso y au ho i ies. In pa icula , he whole AML sys em
will main ain an ’up- o-da e and ha monised AML/CFT supe iso y me hodology’,
111
which will
de ail he isk-based app oach o he supe ision o obliged en i ies. The legal ools suppo ing
he common me hodology co espond o he now s anda d app oach o he Single Rulebook
legal ins umen s, ha is a combina ion o le el 2 and le el 3 ac s (e.g., egula o y and
implemen ing echnical s anda ds. guidelines, ecommenda ions, opinions and o he
measu es and ins umen s as app op ia e).
112
Howe e , he le el o de ails as o he elemen s
which mus be con ained in he supe iso y me hodology, and he means o each ha
ou come, a e qui e unp eceden ed wi hin a le el 1 ac in he Single Rulebook, i.e. he e he
AMLA Regula ion.
113
This p esc ip ion om he legisla o s is an e ec i e suppo o he whole
AML/CFT en o cemen sys em, conside ing i s legally binding na u e.
Some elemen s o his supe iso y me hodology a e al eady being c a ed be o e AMLA’s ull
ope a ion in 2028.
114
In his ega d, he co-legisla o s en isaged ha he sys em elies on some
wo k ca ied ou by he EBA, as ou lined in he in oduc ion, including o he de elopmen o
a ‘ e ined and de ailed ha monised me hodology’
115
ha will allow o assess esidual isk
compa ably (‘ esidual isk me hodology’). Such a me hodology is essen ial in he iden i ica ion
109
All subjec o he p o isions o AMLD6 and AML R ela ed o da a p o ec ion, see in pa icula A icle 70 AMLD6,
and A icle 75 AML Regula ion.
110
A icle 5(3)(e), AMLA Regula ion. See also A icle 5(4)(e) as ega ds asks wi h espec o non- inancial
supe iso s.
111
A icle 8(1), AMLA Regula ion.
112
Ibid. See also Reci al 10, AMLA Regula ion.
113
A icle 8(2) le e s (a) o (d) lis he elemen s o be included wi hin he isk-based supe iso y me hodology. A icle
6(3) gi es an o e iew o some p ac ical ools o da a collec ion and analysis.
114
Common app oaches s a ed o be discussed, du ing he ansi ion pe iod be o e AMLA c ea ion, h ough
egula mee ings o na ional au ho i ies in a Fo um o EU AML/CFT supe iso s, e e y 6 weeks as o June 2024,
which is being phased ou as AMLA akes o e wi h i s own go e nance se up. See EBA, ’Ge ing eady o AMLA :
he EBA’s con ibu ion o he new AML/CFT egime’, 26 June 2024.
h ps://www.eba.eu opa.eu/si es/de aul / iles/2024-06/9dc69374-bd6b-4d2d-8 58-
8 36c8e6c6e7/Ge ing%20 eady%20 o %20AMLA%20 ac shee %20FINAL.pd
115
Reci al 22, AMLA Regula ion.
18
o he selec ed obliged en i ies and should s i e o ‘ha monise’ he di e en na ional
app oaches.
116
The wo EBA d a Regula o y Technical S anda ds ela ed o me hodology
117
will ha e an impac on he AML sys em by de e mining he scope o AMLA’s di ec supe ision
and he wo k o supe iso y au ho i ies owa ds obliged en i ies in assessing and classi ying
hei inhe en and esidual ML/TF isk p o iles.
118
Finally, he au ho i ies ha e a du y o mu ual assis ance.
119
The supe iso y coope a ion in he
sys em manda es na ional supe iso y au ho i ies o p o ide wide- anging in o ma ion o
AMLA on he obliged en i ies ha hey di ec ly supe ise and a e unde a du y o assis ance
in si ua ion in ol ing he applica ion o na ional laws.
120
This du y elies p ima ily on hema ic
e iews,
121
aining, s a exchanges and secondmen s o pe sonnel, sha ing bes p ac ices,
he use o IT ools (e.g. ‘Nex Gene a ion’ FIU.ne , IT and AI se ices).
122
In he con ex o FIUs, he e is a speci ic objec i e o capaci y building, knowledge-sha ing and
good p ac ices, due o he so e na u e o he suppo and coo dina ion mechanism p o ided
by AMLA. In e es ingly, o bo h supe iso y au ho i ies and FIUs, hey may in oduce eques s
o ‘ igge ’ such mu ual assis ance (e.g. o p ac ical ools and me hods,
123
o mo e gene ally,
among FIUs o FIU-AML
124
). On he o he side o he coin, hey a e bound by obliga ions o
in o ma ion and da a sha ing. The co-legisla o s also eso ed o a olun a y dimension in
such mu ual assis ance, in which AMLA may ensu e ha o he supe iso y au ho i ies
mobilise i s esou ces o FIUs p o ide assis ance on a olun a y basis.
125
This so elemen
mus be ead oge he wi h he p inciple o since e coope a ion and mu ual us .
IV
.
The
3
-
D
en o cemen
model
and
agenci ica ion in he
new
AML in eg a ed sys em
We a gue ha he no el y o he e ised AML/CFT en o cemen egime and i s in eg a ed
sys em go beyond a simple u he cen alisa ion o AML/CFT supe ision and en o cemen
(1). Ins ead, he egime is illus a i e o a mo e signi ican ans o ma ion which combines and
in eg a es – wi hin a 3D en o cemen model – he ‘bina y’ app oaches o
cen alisa ion/decen alisa ion, and o di ec /indi ec EU en o cemen powe s, oge he wi h
116
Reci al 22, AMLA Regula ion. Howe e , he EBA will cease o ha e asks and powe s ela ed o AML/CFT once
he AMLA Regula ion is ully applicable, including wi h a ans e o esou ces, see Reci al 84. Fu he mo e, AMLA
will also be able o ely on he EuReCa da abase (AML/CFT da abase) ope a ed by he EBA un il no la e han 30
June 2027. See A icle 106 AMLA Regula ion.
117
Placeholde o he EBA D a RTS o be published in Oc obe 2025.
118
Public consul a ion was open un il 6 June 2025, h ps://www.eba.eu opa.eu/publica ions-and-media/p ess-
eleases/eba-consul s-new- ules- ela ed-an i-money-launde ing-and-coun e ing- inancing- e o ism-package
119
A icle 10, A icle 45 and Reci als 16, 51 AMLA Regula ion. The Commission can also p o ide echnical suppo
o Membe S a es.
120
A icle 7(3) and (4), AMLA Regula ion; see, also, And ea Min o and Thomaz De A uda, ‘The New EU An i-Money
Launde ing Au ho i y (AMLA) and he S anda d o he Applica ion o Na ional Laws - “Wha ’s Pas Is P ologue”?’
Fo hcoming EBOR.
121
A icle 9(5) AMLA Regula ion. All supe iso y au ho i ies a e equi ed o p o ide up on in o ma ion on which
hema ic annual e iews hey en isage o conduc du ing he ollowing yea o supe iso y e m, on a yea ly basis.
122
Reci al 9, AMLA Regula ion.
123
Respec i ely, A . 10(1)(b), 10(3) AMLA Regula ion.
124
A . 45(2) AMLA Regula ion.
125
A , 10(5) and A . 45(3) AMLA Regula ion
19
a hi d dimension o ope a ional and collabo a i e in eg a ion mo ing away om me e
coo dina ion (2).
1.
The e ised AML/CFT en o cemen egime
: a hi d
dimension
The new AMLA agency-cen ed and in eg a ed sys em embodies a quali a i ely new
dimension o he unde s anding o EU policy en o cemen , which is one ha anscends he
adi ional na a i e o a majo shi o di ec en o cemen powe s om na ional o EU le el
and u he cen alisa ion. We a gue ha he cen epiece o he e ised AML/CFT egime is
he dimension o ope a ional and collabo a i e in eg a ion – mo ing beyond me e
coo dina ion ( igu e 1 below). This dimension is, o he i s ime, legally s uc u ed o his
ex en in EU seconda y law and ins i u ionalised unde he AML/CFT en o cemen egime. I
embodies he essen ial con ibu ions and oles o join supe ision and analyses, pee
coo dina ion and p essu e, sha ed in o ma ion and in elligence ac oss au ho i ies and ac o s
ac oss he AML in eg a ed sys em, as examined abo e.
Fi s , he end owa ds g ea e Eu opeanisa ion o en o cemen in he EU is con i med wi h
AMLA adding a u he deg ee o cen alisa ion and assuming g ea e di ec en o cemen
powe s a EU le el – al hough i emains a ‘decen alised’ agency (see subsec ion 2 below).
The di ec supe ision o selec ed obliged en i ies and powe s is-à- is na ional compe en
au ho i ies (pilla 1) cons i u e he main illus a ions o his end.
126
Second, and mo e in iguingly, he e amped AML mul i-ac o en o cemen sys em exhibi s a
hi d dimension in he ea u es shaping en o cemen , which builds on he wo adi ional
ec o s o cen alisa ion/decen alisa ion and di ec /indi ec powe s. No ably, we obse e a
mo e in eg a ed en o cemen sys em os e ed by a numbe o elemen s examined abo e:
AMLA’s asks and powe s, all AML/CFT sys em ac o s’ du ies in in o ma ion and knowledge
sha ing aimed a b eaking exis ing silos, he new mechanisms o mu ual assis ance and
capaci y building, as well as AMLA’s powe s o exe cise pee p essu e and media e
dispu es.
127
Mo eo e , AMLA supe iso y o e sigh unde he new sys em es s on a
de e ence and puni i e unc ion, including impo an disciplining de ice.
128
As such, we a gue ha his addi ional dimension o ‘ hi d dimension’ shows how agenci ica ion
in a common sys em allows mo ing along om me e coo dina ion o ope a ional and
collabo a i e in eg a ion. Such ope a ional in eg a ion no only akes place a agency le el bu
also wi hin he sys em, because all ac o s a e equally in ol ed in common endea ou s, wi h a
sha ed esponsibili y, and s ee ed by common me hodologies (see sec ion III abo e). These
‘ hi d dimensional’ ea u es o he e ised AML en o cemen sys em c ea e and sus ain a
connec i e issue ha ies oge he he di e en pa s in he en o cemen sys em. Indeed, he
126
See, Sec ion III [a].
See, Sec ion III [a] [b] and [d].
128
See, Sec ion III [c].
20
new AML in eg a ed sys em also goes beyond a ne wo k-based en o cemen model – which
would ha e limi ed capaci y o en o ce decisions due o p ima ily in o mali y.
129
The hi d
dimension hus cons i u es an o ganisa ional dimension aimed a os e ing a ha monised and
coope a i e sys em o en o cemen . I is also in his hi d dimension ha we ind main no el ies
aimed a add essing he AML sys em’s ea lie sho comings, including ‘home’-‘hos ’
coo dina ion issues, and ine iciencies in coope a ion and in o ma ion exchange. They appea
o es on he p inciples o since e coope a ion and mu ual us .
2.
The 3D en o cemen model
Ou h ee-dimensional app oach o EU en o cemen aims a ep esen ing be e he wo
adi ional ec o s o cen alisa ion/decen alisa ion and di ec /indi ec en o cemen powe s,
and hei in e play wi h ope a ional and collabo a i e in eg a ion. We examine his in he
con ex o he e ised AML/CFT en o cemen egime.
We p opose a concep ual amewo k o isualise he e ised AML en o cemen sys em in he
EU h ough a h ee-dimensional model (Figu e 1 below). This model anscends a bina y
app oach and illus a es he in e dependence o ac o s in he EU’s AML/CFT en o cemen
sys em. This 3D s uc u e, ep esen ed in he shape o a cube, cap u es he dynamic
in e ac ion be ween h ee ec o s: Decen alisa ion – Cen alisa ion ; Indi ec – Di ec
En o cemen ; Coo dina ion – Ope a ional and Collabo a i e In eg a ion (numbe ed 1 o 3
below). The h ee-axis diag am includes he deg ee o cen alisa ion e sus decen alisa ion
(X-axis), en o cemen powe s anging om indi ec o di ec (Y-axis), and he ex en o
coo dina ion, ope a ional and collabo a i e in eg a ion among ac o s (Z-axis). Those
dimensions a e in e ela ed and embedded in he legal and ins i u ional amewo k abo e
examined and will be u he shaped by p ac ice wi hin he sys em.
The i s axis (X) cap u es he dis ibu ion o supe iso y powe s ac oss he AML/CFT sys em,
om decen alised na ional ac o s o cen alised EU au ho i y (agency o ins i u ion). On he
le end o he spec um (A) lie na ional au ho i ies, including hose o e seeing sel - egula ed
en i ies such as Ba Associa ions in some Membe S a es. A he opposi e end s ands a
hypo he ical ully cen alised en i y a EU le el in a si ua ion in which na ional au ho i ies would
no longe exis . In he e ised egime, he EU’s Au ho i y, AMLA, should be posi ioned il ed
owa ds cen alisa ion
130
conside ing i s di ec supe iso y esponsibili ies o e selec ed
obliged en i ies, ha coexis wi h some sha ed esponsibili ies wi h he na ional au ho i ies
esponsible o he lions’ sha e o non-selec ed obliged en i ies, and FIUs. AMLA is also
esponsible o he o e sigh o e na ional au ho i ies, and in his con ex , i can adop binding
ins uc ions, launch inqui ies, and ake o e he supe ision o non-selec ed obliged en i ies.
Ye , he na ional au ho i ies and FIUs s ill ha e an essen ial ole. Ul ima ely, he adop ed AMLA
129
See discussions in sec ion II.
130
We inse ed a e ical ma k on he X-axis, in a quali a i e way, he e o e, he e is no p opo ional ep esen a ion
o obse e he e.
21
legal and ins i u ional amewo k con ains di ec and indi ec supe iso y powe s combined in
a decen alised EU agency.
131
The second Y-axis e lec s he en o cemen powe s along a spec um om indi ec o di ec
en o cemen powe s. A he bo om o his axis lie indi ec en o cemen ools, such as non-
binding guidance and in o mal coo dina ion mechanisms, which ep esen ea lie s ages o
EU AML policy (be o e he EBA ha ing mo e powe s h ough he 2019 ESAs Re iew). I we go
up he axis, we ind sha ed ins umen s, such as he de elopmen o common me hodologies
and he conduc o pee e iews, which blu he dis inc ion be ween so coo dina ion and
mo e o mal o e sigh . In his ega d, AMLA has been gi en by he EU legisla o s he
esponsibili y o common me hodologies and qui e in usi e ools in i s o e sigh o e he
sys em (e.g. ins uc ions o na ional supe iso s). Mo eo e , in usi e ools exis among
supe iso s (e.g. inqui ies o each o he ) which demons a es a somehow sha ed coe ci e
dimension, which can exis hanks o he de e ence and puni i e unc ion in he o e all
sys em. Towa ds he op, he model cap u es di ec en o cemen powe s, such as AMLA’s
abili y o impose binding supe iso y decisions, o issue sanc ions agains selec ed obliged
en i ies. When hese ools each he highes poin in he cube, hey e lec a quali a i e
di e ence: he imposi ion o legal obliga ions and a coe ci e e ec ha builds upon he
de e ence and puni i e unc ion (see sec ion III). Impo an ly, he AML/CFT en o cemen
egime ep esen s a laye ing o se e al ins umen s ac oss he sys em, wi h di ec and indi ec
en o cemen ools wi hin a common ins i u ional and legal amewo k. This will lead o
implemen AML/CFT policy, h ough in usi e ools when c i ical ( o bo h selec ed and non-
selec ed obliged en i ies) while p ese ing suppo i e o coo dina ing unc ions in he sys em,
including in he coo dina ion and suppo mechanism o FIUs.
The hi d Z-axis in oduces he no el hi d dimension, di ec ed in o he dep h o he cube,
which e lec s he deg ee o coo dina ion, and u he ope a ional and collabo a i e
in eg a ion among AML ac o s in he sys em. A he on o he cube (poin C), he sys em
exhibi s low le el o in eg a ion, wi h minimal and in o mal coo dina ion be ween na ional
au ho i ies and he EU, e.g. h ough ne wo ks, whe e en o cemen la gely occu s in pa allel,
wi h ine iciencies and loopholes ha we obse ed. As we mo e deepe in o he cube, he
model ep esen s he inc easing le el o in eg a ion which we discussed abo e ega ding join
supe iso y eams and join analysis eams, sha ed s a is ical pla o ms, cen alised
da abases, and ha monised isk assessmen s, among o he s. These de elopmen s ep esen
ope a ional and collabo a i e in eg a ion (see poin I) no h ough hie a chical ela ionship in
a simpli ied bina y ashion, bu h ough blending ha d and so en o cemen ools, which a e,
once again embedded legally and ins i u ionally in he e ised AML/CFT en o cemen egime.
A he op- igh co ne (poin F) lies a hypo he ical si ua ion o a ully cen alised and
ope a ionally in eg a ed egime — no (ye ) ealised. No dis inc ion would emain be ween EU-
131
See impac assessmen , pp. 33 and 45.
22
le el and na ional en o cemen ac o s; he EU agency would ha e s a egic o e sigh and
en i e ope a ional execu ion. This hi d axis hus comple es he 3D model by highligh ing how
ope a ional and collabo a i e in eg a ion dynamics ein o ce he o mal alloca ion o powe s
and a ibu ion o compe ences in he EU AML en o cemen egime.
Figu e 1: The 3D S uc u e o he AML En o cemen Sys em in he EU
Sou ce: Au ho s’ elabo a ion
This model, on one hand, illus a es mo e p ecisely and adequa ely a deepening o
agenci ica ion as a mode o go e nance in inancial egula ion. On he o he , i showcases
how he co-legisla o s’ choice, on a spec um be ween me e coo dina ion and u he
ope a ional and collabo a i e in eg a ion, accompanies he gene al end o u he di ec
en o cemen powe s. This policy choice does no necessa ily mean ha he e is ull
cen alisa ion. On he con a y, his shows he impo ance o he whole sys em ied oge he
o implemen he EU policy a ea o which he co-legisla o s chose a common sys em o
en o cemen (whe e uni o mi y, consis ency and con e gence a e undamen al).
V
.
Conclusion
The main con ibu ion o his pape , based on he analysis o he powe s and asks unde he
e ised AML en o cemen sys em, is a new analy ical amewo k o en o cemen s uc u e in
23
he EU, ha es s on a h ee-dimensional (3D) model (see igu e 1 abo e). The model, applied
in he case o he e ised AML/CFT en o cemen egime, combines se e al ‘so ’ ins umen s
and ools o ope a ional and collabo a i e in eg a ion,
132
and unde sco es he de e en and
puni i e unc ion
133
o he sys em wi h binding ools and powe s, disciplining de ice,
134
combined wi h a sha ed expe ise and common me hodologies and app oaches. This
con ibu es o educing agmen a ion and o ensu ing g ea e consis ency and con e gence
o supe iso y p ac ices and he p omo ion o supe iso y s anda ds ac oss he sys em.
In o he wo ds, he e ised en o cemen sys em, wi h AMLA a i s co e wi h na ional au ho i ies
and FIUs, showed ha he p ism o ‘Eu opeanisa ion’ and ha o ‘cen alisa ion’ o
en o cemen , o he ocus on ‘di ec ’ en o cemen powe s, do no gi e a su icien ly obus
analysis o powe s, asks, and key mechanisms unde pinning he e ised egime.
The hi d dimension is complemen a y o he mo e adi ional and bina y app oach o
‘Eu opeanisa ion’ and ‘agenci ica ion’ o EU en o cemen – i.e., he decen aliza ion/
cen alisa ion and di ec /indi ec en o cemen ec o s. As such, he 3D model enables a mo e
obus analysis, one ha illumina es he elemen s o coo dina ion (o en cha ac e ized by
in o mali y and lack o in usi eness as in a ne wo k-based en o cemen ) and o deepe
ope a ional and collabo a i e in eg a ion, including h ough he join conduc , epo ing and
ansmission o analyses, as well as capaci y building ini ia i es, o a ha monised AML/CFT
supe iso y me hodology o he whole sys em. Mo eo e , i can p o e use ul in iden i ying and
s udying he challenges and po en ial weaknesses o an in eg a ed, agency-cen ed sys em,
such as he new AML/CFT en o cemen egime.
The pape builds on he li e a u e on EU en o cemen and he analysis o he new AML
en o cemen sys em. O e all, he e ised AML/CFT en o cemen egime can be cha ac e ised
as an ex a-la ge en o cemen model and exhibi s a deep in eg a ion o EU law and policy
135
h ough he la es e iew o i s legal and ins i u ional amewo k. The EBA held a public
consul a ion ega ding ou d a Regula o y Technical S anda ds (RTS) in sp ing 2025,
ollowing he Eu opean Commission’s call o ad ice. While he esul s a e ye o be
published,
136
hese RTS, as le el 2 ins umen s in he AML Single Rulebook, o m pa o he
AML/CFT en o cemen egime. Thei impac will be wide- anging as hey ocus on he
sanc ion egime, cus ome due diligence, he me hodology o assess and classi y obliged
en i ies’ inhe en and esidual isks, and he me hodology o de e mine he selec ed obliged
en i ies based on isk assessmen . Fu he mo e, AMLA will issue an opinion add essed o he
132
E.g. he olun a y dimension in mu ual assis ance, in which AMLA may ensu e ha o he supe iso y au ho i ies
mobilise i s esou ces o FIUs p o ide assis ance on a olun a y basis.
133
See abo e sec ion III.3.c.
134
In ha espec , any ailu e o comply could lead o AMLA’s ecommenda ions and wa nings, o e en, o he ‘ ake-
o e ’ o ( he di ec supe ision o ) non-selec ed obliged en i ies. See A icle 32(5), AMLA Regula ion.
135
See sec ion II. In pa icula : Mi osla a Schol en, Anne je O ow, (2014) “Ins i u ional Design o En o cemen in he
EU: The Case o Financial Ma ke s”, 10(5)
U ech Law Re iew
, 80-91. He wig Ho mann and Alexande Tü k,
In oduc ion: owa ds a legal amewo k o Eu ope’s in eg a ed adminis a ion, in He wig Ho mann and Alexande
Tü k,
Legal Challenges in EU Adminis a i e Law
: Towa ds an In eg a ed Adminis a ion
(Edwa d Elga 2009), 1-6.
136
Expec ed 31s Oc obe 2025.
24
Eu opean Commission on he ML/TF isks a ec ing he Union e e y wo yea s om 2030
onwa ds.
137
The indings o his pape , in pa icula he delinea ion o he hi d dimension in
ope a ional and collabo a i e in eg a ion also poin s a new di ec ions o u he esea ch
ha could add ess he challenges aced by en o cemen sys ems, o explo e new a enues o
e iewing EU en o cemen egimes in o he policy a eas.
137
A icle 7(5) AMLD6. AMLA can decide o do i mo e equen ly.
