Ireland loses bid to host new EU money laundering watchdog

Financial hub Frankfurt wins out

In March last year, Minister for Finance Michael McGrath declared interest to have the authority based in Ireland. File Picture: Damien Storan/PA Wire

Ireland's bid to host the EU’s new Anti-Money Laundering Authority (AMLA) was unsuccessful as Frankfurt secured the watchdog role after winning a vote in the Council of the EU member states.

"Deal! The EU Council and European Parliament agreed that the new European Anti-Money Laundering Authority will be located in Frankfurt," the Belgian presidency said in a statement on X.

It added that AMLA will play a key role in fighting illicit financial activities in the EU. It will have more than 400 staff, and will start operations mid-2025, it said.

In March last year, Minister for Finance Michael McGrath declared interest to have the authority based in Ireland.

“Locating Amla in Ireland can benefit the authority, as it would have close proximity to a range of entities from which it can learn what’s needed to develop its operational expertise,” said Mr McGrath at the time.

Hosting it could pay dividends by boosting Ireland’s international standards, he added.

The Amla will be tasked with the supervision, either directly or jointly with national supervisors, of entities in the financial services sector and eventually also in the non-financial sector.

The supervision will be in relation to compliance with anti-money laundering, and countering financing of terrorism.

The institution is due to be established this year, although it is not expected to be fully operational until 2026/2027.

The authority is being formed following concerns at EU level that rules and standards need to be strengthened across member states and applied in a uniform manner.

The authority will host the secure communications network for the EU member States’ national Financial Intelligence Units. In Ireland, this is a division of An Garda Síochána, which is currently maintained by Interpol.