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Bruna Szego Named Chair of EU’s AMLA

Italy’s Bruna Szego has been appointed as chair of the European Union’s new Anti-Money Laundering Authority (AMLA), solidifying her position as a leading figure in Europe’s fight against financial crime. Her extensive experience and pioneering work at the Bank of Italy position her as an ideal candidate to lead this ambitious new regulatory initiative.

Bruna Szego brings decades of experience in financial compliance and anti-money laundering (AML). At the Bank of Italy, Szego founded and led the AML supervision and regulation unit, establishing frameworks that aligned Italy’s financial systems with evolving European and global compliance standards.

Her prior leadership roles, including heading the bank’s regulation and macroprudential analysis directorate, highlight her expertise in balancing systemic risk assessment with AML enforcement. Her work emphasized the integration of financial stability measures with robust regulatory mechanisms, a combination critical in today’s interconnected financial markets.

Peers in the financial sector describe Szego as a decisive and collaborative leader, praised for her ability to bridge technical expertise with practical policy implementation. Her role on the European Banking Authority’s AML standing committee further cements her reputation as a thought leader capable of addressing transnational challenges.

The Role of the AMLA and Szego’s Immediate Challenges

The establishment of the AMLA is a landmark development for the European Union, aiming to centralize and enhance oversight of financial crimes. Based in Frankfurt, the AMLA will hire 450 staff members and begin direct supervision of high-risk financial entities by January 2028.

One of Szego’s first major tasks will be appointing a five-member executive board. This body will play a crucial role in shaping the AMLA’s operational structure, strategy, and priorities. Given the scale and complexity of the EU’s financial systems, selecting individuals with a blend of technical expertise, regional representation, and regulatory experience will be vital.

Szego must also navigate the delicate balance of asserting the AMLA’s authority while working collaboratively with national regulators. The AMLA is designed to intervene when national watchdogs fail, requiring Szego to establish trust and operational synergy across EU member states.

Public Perception and Expectations

Szego’s appointment has been met with optimism among many policymakers and financial experts, who view her as a capable leader with a proven track record. However, her selection was not without controversy. She defeated Germany’s Marcus Pleyer, former chair of the Financial Action Task Force (FATF), and Jan Reinder De Carpentier of the Netherlands, despite lacking the backing of the center-right European People’s Party and the Greens in the European Parliament.

Observers note that Szego’s technical acumen and pragmatic approach likely swayed the decision in her favor, signaling the EU’s prioritization of expertise over political alignment. Expectations are high for her to deliver tangible results, particularly as Europe grapples with high-profile financial scandals.

The Path Forward for the AMLA

The AMLA’s creation comes in response to a series of dirty money scandals that exposed vulnerabilities in Europe’s financial oversight. By establishing a centralized authority, the EU aims to standardize enforcement, enhance cross-border cooperation, and restore confidence in its financial systems.

Under Szego’s leadership, the AMLA will need to tackle several priorities:

Building Organizational Capacity: Recruiting and training a skilled workforce to handle the AMLA’s extensive mandate.
Strengthening Enforcement: Ensuring consistent application of AML rules across member states and intervening where necessary.
Engaging Stakeholders: Collaborating with national regulators, financial institutions, and policymakers to foster a unified approach to combating financial crime.

The authority’s success will also depend on its ability to leverage technology, such as artificial intelligence and advanced data analytics, to detect and prevent money laundering activities in real time.

Conclusion

Bruna Szego’s appointment as chair of the AMLA marks a significant step forward in the EU’s efforts to combat financial crime. Her deep expertise, strategic vision, and commitment to regulatory excellence position her to lead the AMLA through its formative years. By appointing a strong executive board and fostering collaboration across the EU, Szego can establish the AMLA as a cornerstone of Europe’s financial integrity.

Source: Politico