The Anti-Money Laundering Authority (AMLA) is set to oversee entities with high risks in the financial sector, according to an agreement reached by negotiators from the Council of the EU and the European Parliament.

The decision on the headquarters of the new authority will be made through a separate process, with several countries having already submitted their proposals to the Commission.

As stated in a related announcement, given the cross-border nature of financial crime, the new authority, in conjunction with national supervisory authorities, will ensure that obligated entities comply with their obligations in the financial sector. AMLA will also play a supportive role in non-financial sectors and coordinate financial intelligence units in member states.

The Authority will also have the power to impose monetary sanctions in cases of serious, systematic, or repeated violations of directly applicable requirements.

The text of the provisional agreement must be approved by the representatives of the member states and the European Parliament through each institution's procedures. Once approved, the Council and Parliament must formally adopt it.