EU’s Anti-Money Laundering Authority (AMLA) Issues Warning

The EU’s Anti-Money Laundering Authority, or AMLA, has issued a warning to regulators and virtual asset service platforms, including crypto exchanges, custodial wallet providers, and crypto ATMs.

Bruna Szego, chair of AMLA, emphasized the need for the EU to be well-protected against money laundering and terrorist financing risks associated with this sector.

The Frankfurt-based authority, operational since the start of the month, is responsible for ensuring compliance with a comprehensive set of new anti-money laundering regulations across the EU’s 27 countries.

In an interview with The Financial Times, Szego mentioned that regulators must assess “the beneficial owner of crypto asset service providers,” including understanding “who their shareholders are and their locations.”

“We need to ensure that owners are not involved in money laundering or terrorism financing,” she said.

Szego highlighted AML risks specific to the European crypto market, including “inconsistent controls” among EU countries and a “fragmented” landscape where numerous companies seek regulatory approval under MiCA. She noted concerns over the “diverging application” of rules by national authorities.

Anna Holmes, a senior associate in the criminal litigation team at UK law firm Kingsley Napley, noted the importance for legitimate firms in the space to meet AMLA’s requirements in each jurisdiction they operate, as regulations may differ by country.

Holmes asserted that AMLA’s strict stance on crypto AML is expected and mirrors the stringent approach taken by regulators like the UK’s Financial Conduct Authority (FCA).

Under the new AML regulations, cryptocurrency service providers are prohibited from engaging with anonymous wallets and privacy coins. VASPs must ensure “direct, immediate, and unfiltered access” to crypto asset account data for government agencies, including the various Financial Intelligence Units and the EU-wide AMLA. These rules will be fully implemented by July 2027.

European crypto firms are no strangers to major anti-money laundering investigations. For instance, Binance faced a €3.3 million fine from the Netherlands’ central bank for failing its AML registration process in July 2022. Additionally, French authorities launched an anti-money laundering probe into Binance in January 2025, amid allegations of terrorist financing related to drug trafficking and tax fraud.