Ireland could be the site for the AMLA headquarters, as it hosts a growing financial services sector and leading companies in sectors such as AI, fintech and the cryptocurrency industry.
Ireland is in the running to host the headquarters of a new EU Anti-Money Laundering Authority (AMLA), which could present a significant boost for the Irish economy.
The Irish Government announced its intention to apply for this bid in March 2023 and said this institution will be “significant” as it will grow to supervise various sectors.
This new decentralised EU agency is expected to have hundreds of staff in technology, administration, governance and business support areas. The decision on which country will host the AMLA will be made by the EU Parliament and the EU Council.
This institution is expected to be formally established in 2024, although it is not expected to be fully operational until roughly 2026.
Ireland is reportedly competing against nine other EU countries to host the HQ, but there are a number of factors that give Ireland a good chance of being chosen. For example, Ireland has significant connections to both the UK and the US markets.
Ireland is also the 6th largest exporter of financial services in the world and the 19th largest international banking sector, according to UN trade and development figures released earlier this year.
The links to Big Tech
The AMLA will initially oversee the financial services sector but is expected to expand to non-financial sectors in the future.
Ireland is regularly chosen by many Big Tech companies to be the site for international headquarters. This includes Apple, Meta, Google, LinkedIn, TikTok and X (formerly Twitter). The connection to various Big Tech players makes Ireland a good location for a new regulatory institution.
Meanwhile, big players in other sectors are choosing Ireland to host their international headquarters. For example, crypto exchange Coinbase chose Dublin as its main EU regulatory hub last month and aims to expand into Europe.
Earlier this year, US crypto exchange Gemini chose Dublin to be the site for its European headquarters, to help it expand its footprint in the continent. The EU has become more focused on this sector in recent years and approved regulation in April to supervise the sector.
In September, OpenAI announced plans to open an office in Dublin, as the ChatGPT creator plans to expand its presence in Ireland and the European market.
Ireland’s fintech sector has also grown in recent years and there are estimates that its neobank sector will grow to more than $95bn in value by 2027.
Hope in the financial service sector
Meanwhile, a survey on financial service companies in Ireland suggests a small majority (55pc) believe that Ireland will win the bid to host the AMLA headquarters.
More than 85pc of those surveyed expect a victorious bid to “bolster compliance” across the Irish financial services landscape. Compliance Institute CEO Michael Kavanagh said hosting the AMLA headquarters would create huge opportunities for Ireland’s financial services sector and would “enhance our reputation as a centre for strong regulation and enforcement”.
“Having the new AMLA headquartered in Dublin would also have advantages for the local and wider economy and see great employment opportunities for professionals living here,” Kavanagh said.
“Hosting the authority here would see some of the Eurozone’s riskiest financial firms overseen from Dublin and see Ireland play a pivotal role in the EU fight against financial crime and money laundering. We believe Ireland is well placed to win this bid.”
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