BERLIN, Jan 25 (Reuters) –Germany’s government believes Frankfurt has a good chance of being selected as the seat of the European Union’s new anti-money laundering authority, the finance ministry said on Friday.
A hearing of the applicants will take place next Tuesday, and German Finance Minister Christian Lindner is to represent Frankfurt at the hearing, according to his ministry.
“We are confident that we are well in the running,” it said. Paris, Madrid, Milan, Brussels, Dublin, Vienna, Riga and Vilnius are also bidding to host the authority.
EU policymakers proposed the new agency in 2021 to stop financial firms from aiding criminals and terrorists. Brussels has so far relied on national regulators to stop money laundering and terrorist financing worth billions of euros.
The authority, which is expected to initially have up to 500 employees, will directly inspect around 200 EU companies, primarily banks and financial service providers.
A joint committee of the European Parliament and the Council will decide on the location in February, according to the finance ministry.
The official application was submitted in November. Lindner argued that Frankfurt’s status as a banking centre and “neighbour” to the European Central Bank would facilitate cooperation between banking and money laundering supervisors.
Reporting by Christian Kraemer; Writing by Maria Martinez; Editing by Jan Harvey
