Rethinking anti-money laundering supervision: The Single Supervisory Mechanism - a model for a European anti-money laundering supervisor?

Whereas the prudential supervision of credit and other financial institutions has been a core policy concern EU legislator in aftermath 2008 Financial Crisis, private sector entities within European Anti-Money Laundering framework subject to less attention. However, on 20 July 2021, Commission intervened published legislative proposals for two regulations one directive, meant boost response phenomenon Money Laundering. This contribution – after having pointed out shortcomings current pursues twofold objective: first, offering an in-depth analysis whether Single Supervisory Mechanism, set up banking union purposes supervision, might be useful precedent Europeanisation build upon matters second, commenting possible approaches taken when setting level supervisor. The systemic cross-border importance AML beyond euro area warrants establishment new agency specialised AML, invested with more supervisory powers than EBA, ESMA EIOPA taking over direct high-risk obliged entities, while indirectly supervising remaining entities. It is argued furthermore that such institutional reform should necessarily accompanied by Rulebook, which enjoys applicability across EU.