Nicosia: In a financial centre that has spent years rebuilding its reputation after money-laundering scandals, the arrival of a powerful new European supervisor is being followed with unusual attention. On 1 January 2026, the European Banking Authority completed the transfer of its anti-money laundering mandates to the Authority for Anti-Money Laundering and Countering the Financing of Terrorism, the Frankfurt-based body known as AMLA.

## A first for the Union

For the first time, the bloc has a dedicated agency charged with directly supervising the fight against financial crime, rather than leaving the task entirely to a patchwork of national regulators. The handover of the EBA’s mandates marks the practical start of that mission, even though the agency will not reach full operational strength for two more years.

## The road to direct supervision

AMLA has set out a measured timetable. During 2026 it is finalising the methodology for the risk assessments that will determine which institutions it polices directly, working alongside national supervisors to test the approach. In December 2025 it published draft technical standards defining the data points and criteria for those assessments. The first selection process is expected in July 2027, with direct supervision of roughly 40 high-risk institutions beginning as the agency becomes fully operational in 2028.

## Why a central authority

The case for centralisation rests on a long record of failure. Cross-border banks repeatedly exploited gaps between national regimes, and several of Europe’s largest laundering scandals slipped through precisely because no single supervisor had the full picture. A central authority, its backers argue, can impose consistent standards and act where national regulators have hesitated.

## The doubts

Skeptics warn that a young agency taking on entrenched criminal networks and politically sensitive cases faces a steep climb. Much depends on whether member states equip it with enough skilled staff and whether national authorities cooperate rather than guard their turf. The leadership, chaired by Bruna Szego since early 2025, will be judged on its ability to turn legal powers into enforcement results.

## What happens next

The immediate work is unglamorous but decisive: building methodologies, hiring specialists and aligning 27 supervisory cultures. The reputational stakes for places like Cyprus are high, and the credibility of the whole framework will rest on the cases AMLA chooses to pursue once its powers fully bite. The agency’s early credibility will also hinge on coordination with other watchdogs, from the European Central Bank to national financial-intelligence units, whose data and cooperation it will need to act decisively.