Dáil Éireann Debate, Tuesday - 20 June 2023
257. Deputy Damien English asked the Minister for Finance his views on Ireland’s bid to host the new EU AML Authority; if Ireland having a strong AML, legal and administrative framework will assist in this bid; the next steps that will be taken in order to advance Ireland’s bid; and if he will make a statement on the matter. [29818/23]
Amharc ar fhreagraThe new EU Anti Money Laundering Authority - AMLA - will be established on foot of an EU Regulation that was published in July 2021 and expected to be adopted later this year. AMLA will be a significant EU institution, tasked with supervision - either directly, or indirectly - of obliged entities in the financial services sector in the first instance and eventually, those in the non-financial sector. The supervision will be in respect of the entities' compliance with EU anti money laundering and countering the financing of terrorism ("AML/CFT") rules and standards. In effect, it will oversee implementation of the forthcoming EU "single rulebook" on AML/CFT matters and is expected to provide harmonised guidance and regulatory technical standards to national supervisors, such as the Central Bank of Ireland. For it to have full authority in these matters, it will take over the AML/CFT competences from the European Banking Authority.
On 24 March, the Government decided to signal Ireland's interest in hosting the new EU Anti Money Laundering Authority, "AMLA". Nine other countries are also bidding - France, Germany, Belgium, Luxembourg, Latvia, Lithuania, Spain, Italy and Austria - and others may yet do so.
AMLA was due to be established in January this year, but the decision about the host location has been delayed, as a new framework has to be developed in relation to the selection criteria and selection processes to be effected when the EU is establishing new EU institutions, beginning with AMLA. Following an ECJ ruling in July 2022, there is now a greater role for the EU Parliament in the selection process and settling on an agreed framework, between the EU Council and Parliament, is taking some time. Nevertheless, the indications are that the process will conclude this year. We have a good sense of what many of the criteria for selection of the host country will be, including that AMLA should be able to establish immediately, in the host country and do so with full independence; it should have access to a skilled labour force in the country; there should be appropriate social welfare, educational and medical care for AMLA staff and their spouses and children; there should be adequate training opportunities in AML/CFT matters; and there should be a balanced geographic spread of EU institutions across the entire of the EU.
The EU Parliament is keen that an added consideration, in terms of deciding on the host country, should be its AML/CFT framework, but there is no consensus on this yet. However, if our AML/CFT framework is to be scrutinised, I am confident we will not be found wanting, as it is robust and last year, the Financial Action Task Force, which is the global standard setter in all matters AML/CFT-related, noted the "significant progress" made by Ireland in strengthening its framework over the last few years.
While we await the final criteria in relation to the selection process, my officials have been preparing the groundwork for Ireland's formal bid, compiling the information that will likely be sought by the EU co-legislators tasked with assessing Member States' applications. Officials have also collaborated closely with our embassies, reaching out to counterparts at official level across the EU, to highlight the benefits of locating AMLA in Ireland and seeking their support for our bid. Underpinning all of those efforts, has been a significant volume of information and advice provided by many Government Departments, agencies, semi-State agencies and the private sector, all of whom have been highly supportive of the proposal to host AMLA here. That work is ongoing.
I believe Ireland is a great location for this important new EU authority. We have a significant financial services sector, built over decades, that will be subject to AMLA’s direction and the new single rulebook. Within that sector, there is good AML/CFT compliance as we have a robust framework which will be further enhanced by this new agency. Hosting it here will only add to Ireland’s and the EU’s compliance with international standards.
