Investigatory Powers of the New European Anti-Money Laundering Authority
In Short
The Situation: On May 31, 2024, the Council and the European Parliament agreed on the establishment of the European Authority for Anti-Money Laundering and Countering the Financing of Terrorism ("AMLA"), one of the focuses of the "AML package," which includes EU Regulation 2024/1620 establishing the AMLA.
The Result: The AMLA is based in Frankfurt am Main and started its operations on July 1, 2025. AMLA will become fully operational by January 2028 and will have, among other supervisory tools, broad investigatory powers over 40 obliged entities of the financial sector directly under the jurisdiction of AMLA (i.e., selected obliged entities).
Looking Ahead: AMLA's direct supervision over selected obliged entities will start as of January 1, 2028. From that date, AMLA will be able to exercise its investigatory powers instead of national competent authorities. Such investigatory powers will range from information requests to on-site inspections performed by joint supervisory teams or dedicated teams.
Investigative instruments made accessible to the AMLA toward selected obliged entities are detailed below. This Commentary relates to AMLA's investigatory powers and not to AMLA's direct or indirect supervisory powers which have been covered by previous Commentaries accessible here. AMLA's sanction powers and legal resources available to challenge such sanctions will be detailed in a dedicated Commentary.
Requests for Information
AMLA will be able to require selected obliged entities, natural persons employed by them, legal persons belonging to them, and third parties to whom the selected obliged entities have outsourced operational functions or activities, to provide it with all the information it needs to perform its tasks.
General Investigatory Powers
In order to carry out its tasks, AMLA will have the power to conduct all necessary investigations in relation to selected obliged entities or natural or legal persons employed by or belonging to a selected obliged entity that is established or resident in a Member State.
For this purpose, AMLA will be able to: (i) request the submission of documents; (ii) examine and take copies or extracts of books and records of the persons involved; (iii) obtain access to internal audit reports, accounting certificates and software, databases, IT tools or other electronic means of recording information; (iv) obtain access to documents and information relating to decision-making processes, including those generated by algorithms or other digital processes; (v) obtain written or oral statements from any person to which AMLA can request information (see above) or their representatives or employees; and (vi) interview any other person who consents to be interviewed for the purpose of obtaining information relating to the subject matter of an investigation.
If a person hinders these investigations, AMLA may, with assistance of the national financial supervisory authority and in accordance with national law, access the business premises of the selected obliged entity in order to exercise its investigative powers.
On-Site Inspections
Subject to prior notification and on the basis of a formal decision of the AMLA, AMLA will have the power to conduct all necessary on-site inspections at the business premises of the selected obliged entities or of any other person to which AMLA may request information (see above).
By way of exception, AMLA could carry out an on-site inspection without prior notification if required by the proper conduct and efficiency of the inspection. In the case of natural persons whose business premises are also their private residence and other cases where national law requires prior judicial authorization, AMLA will have to require such prior judicial authorization for an on-site inspection.
In any event, on-site inspections will be conducted by a joint supervisory team or by a dedicated team, the composition of which shall be decided in cooperation with the national financial supervisor.
In the case of resistance of the selected obliged entity towards the on-site inspection, AMLA could seek assistance to the national financial supervisor or other national authorities in accordance with national law. To the extent necessary for such inspection, this assistance shall include the sealing of business premises and books or records.
Investigatory Teams
If AMLA identifies serious indications of possible breaches in the course of its duties, AMLA will have to set up an independent investigatory team that is not involved in direct supervision of the selected obliged entity and acts independently.
The investigatory team shall investigate the alleged breach, taking into account any comments of the persons subject to investigation, and shall submit a complete file with its findings to the Executive Board. In order to fulfill its tasks, the investigatory team could request all needed information, exercise the abovementioned general investigatory powers, and conduct on-site inspections. The investigatory team shall also have access to all documents and information gathered by the joint supervisory team in the course of its supervisory activities.
Upon completion of its investigation, the investigatory team will give the persons subject to investigation the opportunity to be heard before submitting the report with its findings to the Executive Board. Such Executive Board will then decide if one or more breaches have been committed and, as the case may be, impose an administrative measure or a pecuniary sanction.
Two Key Takeaways
- AMLA will have wide investigatory powers over selected obliged entities, which it will exercise independently. Such powers will range from information request to on-site inspections with or without prior notification.
- Selected obliged entities will be responsible for providing the requested information to the new authority and cooperating truthfully, comprehensively, and without delay.
