Speech by Commissioner Albuquerque at the event Beyond compliance – the human cost of money laundering organised by Accountancy Europe

Good morning, ladies and gentlemen.

It is a great pleasure to be with you today.

Let me begin by thanking the organisers for placing the human impact of our legislation at the centre of todays discussion, and for bringing together such a diverse community of regulators, practitioners, law-enforcement experts and civil-society representatives.

Of course, discussing technical implementation is essential. You need clarity, consistency, and the right tools to apply our legislation correctly. But it is equally important not to lose sight of the impact our rules have on the lives of European citizens.

And as a Union of 450 million people - increasingly interconnected, increasingly exposed to global threats - we are more than an economic project. We are a political and values-based community that must protect its citizens, uphold its principles, and safeguard its security.

In this context, fighting money laundering is not an isolated regulatory exercise. It is not compliance for the sake of compliance. It is a critical link in the chain that protects trust in our financial system, shields our societies from criminal abuse, and defends the safety, dignity and prosperity for all Europeans.  

As you will be aware, last year the European Union adopted a major reform of its anti-money laundering and counter-terrorist financing framework.

This reform was not undertaken to create more checklists or more administrative layers. And it was not solely intended to “close loopholes” in the legal system, although that was necessary.

The ultimate purpose is deeper.

We updated our framework because money laundering undermines the very foundations of the Union.

It destabilises our financial system by undermining citizens trust; it threatens our internal market by allowing criminal profits to distort competition; it undermines our peace and security, by fueling serious and organised crime and allowing violence, coercion, and corruption to surge.

This is why the AML package of 2024 is more than a technical update.

It is a strategic investment in the security of our citizens, the resilience of our economy, and the integrity of our democracy.

It is also important to note that this package was not put together on its own.  

It must be understood within the broader context of related initiatives at EU level, including the revision of the rules on organised crime and of the Europol regulation.

We are living in a world of rapid geopolitical and technological change, where we must ensure that we are prepared and equipped for new developments. These new rules are about staying ahead of emerging risks and shaping the future rather than reacting to it.

Our new AML rules drill down to the core of the issues that are holding us back.

First of all, we are tackling fragmentation.

When we operate without consistency, we hand the criminals a distinct advantage. Our system   is as strong as its weakest link.

The AML package aims to create an airtight system of harmonised policies and procedures, which will shut the door on those trying to undermine our legal system.

Crucially, we are strengthening our framework through directly applicable rules for customer due diligence, beneficial ownership, internal controls, reporting obligations, and high-risk sectors.

We need fewer loopholes and a level playing field for all obliged entities.

To ensure this level playing field, the package also reinforces cooperation between Member States - we have to be able to work better together.  

This means better cooperation between Financial Intelligence Units, better access to beneficial ownership information, better interoperability of bank account registers, and better cross-border exchange of data.

Criminals have been operating across borders for a long time, and digital advances have only made this easier. Here too we need to level the scales, and ensure that enforcement can also be done with a pan-European perspective.

In this regard, AMLA will be a game changer.

It will coordinate national supervisors to ensure consistency and supervisory convergence across the Union.

It will also strengthen the cooperation between Financial Intelligence Units to ensure better and timely exchange of information and facilitate the conduct of joint analyses.

It will develop dedicated methodologies, standards, and analytical tools available for competent authorities and FIUs to enhance their analytic capacities, and be able to offer specialized trainings and assistance.

It will also be tasked with monitoring developments across the internal market and assessing threats, vulnerabilities and risks in relation to ML/TF with a pan-European perspective.

And, finally, it will directly supervise certain high-risk cross-border financial institutions, for which it is particularly important and complex for supervisors to gain a comprehensive overview over the full spectrum of business operations.

This means that Europes strongest line of defence will now be pointed directly at the areas with the most risk.

However, the new framework is not only about tackling money laundering as such, it also requires obliged entities to develop a deeper understanding of the purpose and context of transactions. And this makes a crucial difference.

It can be critical for detecting crimes such as:

• human trafficking,
• gender-based exploitation,
• forced labour,
• and drug trafficking.

These offences occur every day across our Union, and we must be able to identify the patterns early and rapidly in order to eradicate them.

This underlines why better cooperation between obliged entities, supervisors, Financial Intelligence Units and ultimately the judiciary is absolutely essential.

Ladies and gentlemen, the big legislative work for this package is done. We now move to implementation, which is another challenge in itself.

I have explained the importance of the various links in our financial system, and we need everyone along that chain pulling in the same direction if we want to succeed. This package can only work if everyone takes ownership for its success.

From the Commissions side, our work is now to support Member States, supervisors and obliged entities in implementing the rules on the ground.

We will provide guidance, facilitate cooperation and closely monitor progress.

This implementation phase is crucial – it is where the real impact is made. 

We are aware that this is not an easy task, but it is precisely in such moments that we should remember the ultimate objective of the rules: not to provide a new check list for companies, but as a way to create a safer society, that allows citizens and businesses in Europe live and work with confidence.  

We are also focused on preparing detailed measures to lay out how to implement the rules properly.

In terms of timing, our rulebook has to be completed by mid-2027: this is the strict deadline for the AML Regulation to become applicable and for the Directive to have been transposed by all Member States.

The co-legislators have divided the work on level 2 and level 3 measures between the Commission and AMLA, in accordance with our respective competences.

And I would like to say a word on the importance of AMLA – which I believe to be the biggest achievement of the AML package.

The establishment of AMLA demonstrates political commitment to a unified approach to tackling financial crime.

It is a courageous and dedicated response to the structural vulnerabilities that have long weakened the EUs ability to confront such criminals. It strengthens the integrity of our Single Market, and above all, it sends a clear message: money laundering will now be met with a stronger, EU wide response.

As we progress along this implementation phase, we will continue to organise implementation workshops for both the Directive and the Regulation, to ensure that our expectations are clear, and that you have the opportunity to clarify any doubts. 

We also want to continue our engagement with stakeholders so that we can understand where uncertainties remain and what are the challenges on the ground.

To conclude, I want to come back to the idea that our money laundering rules are broader than simple regulatory obligations.

They are about people. They are about real lives that can be irreversibly harmed by financial crime.

Behind every suspicious transaction, there may be a victim of human trafficking, corruption, child labour, or terrorist activity. That is what is at stake.

The simple truth is that AML rules should not be viewed as a burden, but as a responsibility – a duty we all share towards society.

Strong AML rules ensure that capital flows to where it is needed most. And for Europe right now, that means innovation, sustainable growth, and quality jobs for our citizens.

They safeguard our financial stability, strengthen the integrity of our markets, and protect the reputation of Europe as a safe and transparent place to do business. I would like to thank you once again for having me, and I am looking forward to our discussion.