Headhunter Lorne Campbell expects the establishment of the EU Anti-Money Laundering Authority (AMLA) in Frankfurt to significantly enhance the city as a financial centre, and also to intensify the competition for top talent. „We have a structural undersupply of anti-money laundering experts – this will remain the case until sufficient educational offerings are available“, says the Managing Partner at Boyden in an interview with Börsen-Zeitung.

There are already courses and modules geared towards this topic, whether at the Frankfurt School of Finance & Management, or the House of Finance, but it won't be enough. „The competition for talent and labour will be considerable“, states Campbell, who has decades of management experience in the financial sector. Before joining Boyden in April 2021, he held positions at institutions including DekaBank, Credit Suisse, Cheuvreux, Schröder, Münchmeyer, and Hengst & Co.

AMLA is expected to employ around 430 staff when it begins full supervisory activities in early 2028. For comparison, the European Insurance and Occupational Pensions Authority, which is based in Frankfurt's Westhafen Tower, has 200 employees. Campbell believes AMLA won't stay at 430 staff, saying that „I have never seen an authority shrink.“

The European Central Bank (ECB) example speaks volumes. According to Helaba Research & Advisory, it started in Frankfurt in 1998 with around 500 employees, steadily increasing. In 2013, it took on banking supervision tasks, and by the end of 2022, total employment had grown to over 4,100 – a nearly eightfold increase in a quarter-century.

In addition to direct employment at AMLA, Campbell is convinced that additional jobs will be created in the surrounding area. „Due to digitalisation and internationalisation, anti-money laundering is becoming more demanding, and tasks are increasing," he says. "This will raise the demand for employees in banks – but not only there. Consultants, lawyers, and other regulatory experts will also be in demand and their numbers will grow.“ AMLA will directly supervise about 40 banks and financial service providers in Europe that are exposed to particularly high money laundering risks.

Campbell is confident that the new institution will be attractive to financial experts across Europe, especially since Frankfurt is comparatively very attractive in terms of quality of life and cost of living. The exact location of AMLA has yet to be determined. The Messeturm, Turm 185, and the Flow office building at the airport are among the options. The decision is pending.

AMLA will be a stabilising anchor that makes the regulatory and supervisory location indispensable. „A proper regulatory cluster has formed in Frankfurt – we can talk of a critical mass that has now been achieved“, explains Campbell. „The city is a magnet. When it comes to financial regulation, Frankfurt cannot be overlooked.“

In terms of financial supervision, the Main metropolis is home to the ECB and the Bundesbank. And Bonn-based BaFin also has a strong presence in the city, with about a third of its approximately 3,000 employees here. EIOPA is headquartered in Frankfurt, as is the International Sustainability Standards Board (ISSB), a green standard setter. Finally, the European Systemic Risk Board (ESRB) should be mentioned. The secretariat overseeing the EU financial system is located at the ECB.

The expected influx of financial experts working at AMLA, and their families, will further strain the social infrastructure in the Rhine-Main area, such as schools. „It's bursting at the seams already,“ notes Campbell. Nonetheless, he is optimistic that solutions will be found.

According to Campbell, Frankfurt's success in attracting AMLA was also due to a joint effort by the finance industry and politicians: „It shows what is possible when personal preferences are set aside and something is accomplished together. It worked wonderfully," he says. Representatives from the highest levels of business and politics, from city, state, and federal levels all rallied to bring AMLA to the Main.

This will make it easier to forget about the European Banking Authority setback in 2017. At that time, the French president himself called for the EBA to be located in Paris, following the Brexit vote. In this country, however, political dignitaries showed less interest in the matter, which earned them a lot of criticism.

To partially alleviate the skilled labour shortage, not only among compliance specialists but throughout the finance industry, Campbell argues that investments in digitalisation and Artificial Intelligence are necessary. „It's a race," he says. "The available labour force is decreasing, and the answer to the skills shortage lies in investments in digitalisation and Artificial Intelligence.“

Campbell doesn't buy into the theory that AI will destroy jobs. Rather, it could lead to a lot of new development. „Before the development of the railway, there were approximately 40 professions in the world. Afterward, there were about 400“, he says.

The financial experts at Helaba observe that labour shortages are increasingly slowing down employment growth in Frankfurt's financial sector. They expect a slight increase in banking employment in the Main metropolis to nearly 70,000 employees by the end of the year. But this number could have been higher without demographic shifts. According to consulting firm ZEB, the average age in the financial sector is 47 years.