On the sidelines of the agreement on the money laundering package reached on Wednesday 17 January (see EUROPE 13331/22), the ambassadors of the Member States to the European Union (Coreper) discussed, the following day, the internal selection procedure for the seat of the future Anti-Money Laundering Authority (AMLA).
In accordance with the decision of the Court of Justice of the EU, this seat will be decided jointly by the co-legislators. The European Commission’s assessments of the bids were published in December and will enable the EU Council and the European Parliament to choose the city that will host this new authority (see EUROPE 13318/27).
The candidate cities are Brussels, Frankfurt, Dublin, Madrid, Paris, Rome, Riga, Vilnius and Vienna. EUROPE has consulted the Commission’s assessments to identify the strengths and weaknesses of each of the candidates.
Brussels. Belgium is providing a building with a total surface area of 8,340 m² spread over 9 floors, which can accommodate 400 people. Despite a monthly rent of €40,189, the country intends to cover it indefinitely.
In its bid, Belgium highlighted its accessibility by train or plane from/to many European capitals. Finally, it mentioned the large number of international nurseries and schools. It also highlighted the presence of over 140,000 European nationals working in Brussels, demonstrating the employment opportunities for the spouses of future AMLA employees. Its enormous weakness is the presence of the European institutions and the Single Resolution Board in Brussels. This would facilitate their relations with AMLA, but would also contribute to the concentration of institutions.
Frankfurt. Similarly, Germany is providing 10,000 m² of premises that can accommodate 400 people. The monthly cost is around €430,000, but the German federal government, the state of Hesse and the city of Frankfurt will provide a lump-sum subsidy totalling an estimated €10 million, to be paid over a five-year period.
The city is easily accessible by train and plane and, like Brussels, offers a wide range of childcare services and multilingual teaching facilities. It has a dynamic economy that offers job opportunities. However, as in the case of Brussels, the choice of Frankfurt would contribute to the concentration of institutions, as the city is already home to the European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA). In addition, Germany demonstrated shortcomings in terms of anti-money laundering in the latest assessment by the Financial Action Task Force (FATF) (see EUROPE 13009/19).
Dublin. Ireland offers two buildings of 8,650 and 26,756 m². This amounts to €5,626,563 per year, which Ireland intends to finance over 9 years. It also offers numerous job opportunities and a wide range of international teaching courses.
Because of its peripheral location, Ireland is the least easily accessible candidate, but it does benefit from numerous airlines and ferries. It is also home to the European Foundation for the Improvement of Living and Working Conditions (Eurofound) and the European Commission’s Directorate-General for Health and Food Safety.
Madrid. Spain has earmarked 9,500 m² for the AMLA, with the possibility of an 8,000 m² extension. Madrid intends to cover the rent and certain costs for a period of 5 years. The monthly rental cost is approximately €193,648. The city is easily accessible by plane, but less so by train from abroad.
In addition to a large number of crèches, the first accredited European school in Spain will open in Madrid in 2024. The big advantage of this bid is that Madrid is not home to any European agency. However, the country is home to the European Intellectual Property Office (EUIPO) in Alicante, the European Agency for Safety and Health at Work (EU OSHA) in Bilbao and the European Fisheries Control Agency (EFCA) in Vigo.
Paris. France did not indicate a specific location in its bid, but proposed three premises as examples. It undertakes to guarantee that a suitable building will be available on the date specified in the regulations. It will provide a subsidy of €15 million for the first 9 years.
What’s more, France is already home to a number of institutions and agencies: the European Parliament in Strasbourg, the Community Plant Variety Office (CPVO) in Angers, the European Union Agency for Railways (ERA) in Valenciennes, as well as the European Union Institute for Security Studies (EUISS), the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) in Paris. The country is not left behind, however, as Paris is very well connected to the transport network and has a large number of international nurseries and schools.
Rome. The Italian capital is providing 17,352 m² of premises that can accommodate 524 people. However, the building will not be available until April 2026, and cannot be extended. The country has undertaken to partially cover the rent for eight years, for a total contribution of €20 million.
Rome has two international airports and three railway stations. However, the town has fewer hotels than its competitors. Similarly, the education on offer is less multilingual than in other candidate cities. Italy currently hosts two decentralised agencies, the European Training Foundation (ETF) in Turin and the European Food Safety Authority (EFSA) in Parma.
Riga. Latvia offers a 7,740 m² facility, with the possibility of extension, that can accommodate 750 people. It intends to cover the fitting-out costs as well as the rent and maintenance costs for two years.
The city is mainly accessible by air, and the port of Riga offers regular ferry links with the Nordic countries and Germany. Latvia has emphasised that it will be integrated into the single European railway area by 2026. Multilingual teaching provision is fairly limited. Nevertheless, it benefits from a FinTech ecosystem that attracts a wealth of talent and businesses. According to its application, the establishment of the AMLA in Riga would strengthen the EU’s presence in Latvia and contribute to the EU’s geographical balance.
Vilnius. Lithuania offers premises of 6,591 m², which can accommodate 400 people, with a possible extension of 2,682 m². The monthly rent would be €148,429.32, covered by the country for 5 years.
Vilnius is mainly accessible by air, but is linked to Warsaw and Riga by train. Multilingual teaching provision is fairly limited. The country hosts the European Institute for Gender Equality (EIGE) and indicates that geographical balance should be one of the main criteria for selecting seats.
Vienna. Austria has planned a 10,440 m² facility, with a capacity of 600 people and the possibility of a 2,000 m² extension. It intends to cover the fitting-out costs and the rent for 3 years, until the end of the lease. The rent is €242,625.60 per month.
Vienna has numerous air and rail links, as well as a wealth of multilingual educational opportunities. More than 200 multinational companies, 46 international organisations, quasi-international organisations and NGOs together employ around 6,600 people. The Expat Center of the Vienna Business Agency offers assistance and digital services. Vienna is already home to the European Union Agency for Fundamental Rights (FRA) and to ensure physical security, entry checks and the separation of certain rooms have been planned.
To read the Commission’s assessments: https://aeur.eu/f/aip (Original version in French by Anne Damiani)