The Facts
The European Union will base its Anti-Money Laundering Authority (AMLA) in Frankfurt, Germany, the EU's Belgian presidency announced on Thursday. The agency's mission is to crack down on money laundering and sanction circumvention.
AMLA will also focus on terrorism financing in the EU. Prior to AMLA's establishment, the EU had no centralized force to stop illicit funds, and Brussels relied on national authorities to enforce its rules, which some member states failed to comply with.
The Spin
Narrative A
Choosing a host city for AMLA was challenging, and it's easy to see how the political influence of a city like Frankfurt could coerce EU officials into approving its bid. While Frankfurt has an extensive network, particularly in the financial sector, it has many cost drawbacks that make it a questionable host for AMLA. EU leaders should've primarily focused on each city's tangible costs and benefits, but behind-the-scenes back-scratching was the deciding factor for Frankfurt's selection.
Narrative B
After two years of careful deliberation and debate, the European Parliament and Council selected Frankfurt as the home of the AMLA. While all nine potential cities had their reasons for consideration, Frankfurt stood out for its historical and symbolic significance. The fair and transparent selection process has now concluded, and all EU members are focusing on empowering AMLA and eliminating dirty money from the bloc.