LAST UPDATE
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Thu 7:32 PM
THE EUROPEAN UNION has chosen Frankfurt, Germany as the home to the new anti-money laundering agency this evening, crushing the hopes of Ireland’s finance ministers that Ireland would be chosen.
In a joint vote by representatives of the European Parliament and Council, the German city was chosen as the bloc’s lead enforcer against the washing, use and trafficking of dirty money.
Nine cities had submitted applications to host the new centre, including Dublin, which has now missed out on the opportunity.
Both Government finance ministers had been pleading Ireland’s case to EU lawmakers in recent weeks in hopes they would chose Dublin at the host city. Frankfurt this evening received a majority of votes from the European Union.
EU member states and the European Parliament agreed in December to establish a new Anti-Money Laundering Authority (AMLA) to tackle money laundering, efforts to get around EU sanctions, and terrorism financing.
The AMLA will have supervisory powers and oversee 40 financial entities deemed most at risk. It will also be able to supervise companies that facilitate trading and storing crypto-assets.
In serious cases or in the case of repeated breaches, the AMLA will have the power to impose financial penalties.
MEP Eva Maria Poptcheva said this evening that the decision was “historic”, and claimed the establishment and site decision will benefit democracy. She thanked her EU colleagues who have helped make the process smoother.
She said she hoped the agency will “put an end to dirty money” in the European Union.
Fellow MEP Emil Radev said selecting Frankfurt was a major win for the European Union and congratulated the German city.
Irish Commissioner Mairead McGuinness, who oversees financial systems in the Union, described the appointments as “good news” and also thanked her European colleagues.
McGuinness said there were “strong” public hearings which convinced representatives which city to choose. Radev said that the city was chosen as the bloc felt it fulfilled all the criteria the union had placed on it.
The Fine Gael Commissioner said this evening the appointment of the host city was “the start of another journey in relation to money laundering and terrorist funding” in the EU.
She added that teams are “ready to go” for tomorrow morning to begin the work that is needed to establish the new EU institution and suggested it will be up-and-running, in some capacity, by 2025.
The concept of a dedicated anti-money laundering agency was proposed by the EU Commission in 2021 after several of dirty money scandals in Europe.
Finance minister Michael McGrath previously said Ireland was “directly suited” to host the newest EU watchdog and had visited the parliament last month, along with junior finance minister Jennifer Carroll McNeill, to plead Ireland’s case.
Additional reporting by AFP and Muiris O’Cearbhaill
