Activities of Ernest URTASUN related to 2021/0240(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) 1094/2010, (EU) 1095/2010
Amendments (218)
Amendment 211 #
Proposal for a regulation
Recital 5
Recital 5
(5) To bring AML/CFT supervision to an efficient and uniform level across the Union, it is necessary to provide the Authority with the following powers: direct supervision of a certain number of selected obliged entities of the financial sectorand non-financial sectors, including crypto-asset service providers; monitoring, analysis and exchange of information concerning ML/TF risks affecting internal market; coordination and oversight of AML/CFT supervisors of the financial sector; coordination and oversight of AML/CFT supervisors of the non- financial sector, including self-regulatory bodies and the coordination and support of FIUs.
Amendment 217 #
Proposal for a regulation
Recital 7
Recital 7
(7) A seat agreement should be establishedThe arrangements concerning the seat of the Authority should be laid down in a headquarters agreement between the Authority and the host Member State, stipulating. The headquarters agreement should include the conditions of establishment of the seat and advantages conferrof the Authority and the facilities to be provided by the Member State ton the Authority and its staff. The choice of the location of the seat of the Authority should comply with the conditions laid down in this Regulation.
Amendment 219 #
Proposal for a regulation
Recital 8
Recital 8
(8) The powers of the Authority should allow it to improve AML/CFT supervision in the Union in various ways. With respect to selected obliged entities, the Authority should ensure group-wide compliance with the requirements laid down in the AML/CFT framework and any other legally binding Union acts that impose AML/CFT-related obligations on financial institutions. Furthermore, the Authority should carry out periodic reviews to ensure that all financial supervisors have adequate resources and powers necessary for the performance ofperform their tasks adequately. It should facilitate the functioning of the AML supervisory colleges and contribute to convergence of supervisory practices and promotion of high supervisory standards. With respect to non-financial supervisors, including self- regulatory bodies where appropriate, the Authority should coordinate peer reviews of supervisory standards and practices and request non-financial supervisors to investigate possible breaches of AML/CFT requirements. In addition, the Authority should coordinate the conduct of joint analyses by FIUs and make available to FIUs IT and artificial intelligence services and tools for secure information sharing, including through hosting of FIU.net. The IT and artificial intelligence services and tools made available by the Authority, should be human-centred and should be guided by the principles of transparency, explainability, accountability and responsibility.
Amendment 223 #
Proposal for a regulation
Recital 13
Recital 13
(13) Considering the important role of thematic reviews in AML/CFT supervision across the Union as they enable to identify and compare the level of exposure to risks and trends in relation to obliged entities under supervision, and that currently supervisors in different Member States do not benefit from these reviews, it is necessary that the Authority identifies national thematic reviews that have a similar scope and time-frame and ensures their coordination at the level of the Union. To avoid situations of possibly conflicting communications with supervised entities, the coordination role of the Authority should in principle be limited to interaction with relevant supervisory authorities, and should not include any direct interaction with non- selected obliged entities, unless agreed otherwise with national supervisors or in case of insufficient action taken by the national authority with respect to an obliged entity breaching AML/CFT rules. For the same reason, the Authority should explore the possibility of aligning or synchronising the timeframe of the national thematic reviews and facilitate any activities that the relevant supervisory authorities may wish to carry out jointly or similarly.
Amendment 226 #
Proposal for a regulation
Recital 14
Recital 14
(14) The efficient usage of data leads to better monitoring and compliance of firms. Therefore, both direct and indirect supervision by the Authority and supervisory authorities of all obliged entities across the system should rely on expedient access to relevant data and information about the obliged entities themselves and the supervisory actions and measures taken towards them. To that end, the Authority should establish a central AML/CFT database with information collected from all supervisory authorities, and should make such information selectively available to any supervisory authority within the system. This data should also cover withdrawal of authorisation procedures, fit and proper assessments of shareholders and members of individual obliged entities as this will enable relevant authorities to duly consider possible shortcomings of specific entities and individuals that might have materialised in other Member States. The database should also include risk indicators of obliged entities, qualitative information regarding the supervisory plans and priorities of the Authority and statistical information about supervisory and other public authorities involved in AML/CFT supervision. Such information would enable effective oversight by the Authority of the proper functioning and effectiveness of the AML/CFT supervisory system. The information from the database would enable the Authority to react in a timely manner to potential weaknesses and cases of non-compliance by non-selected obliged entities. Pursuant to Article 24 of Council Regulation (EU) 2017/193934 , the Authority will without undue delay report to the EPPO any criminal conduct in respect of which it could exercise its competence in accordance with Article 22 and Article 25(2) and (3) of that Regulation. Pursuant to Article 8 of Regulation 883/201335 , the Authority will transmit to OLAF without delay any information relating to possible cases of fraud, corruption or any other illegal activity affecting the financial interests of the Union. _________________ 34 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1). 35 Regulation (EU, EURATOM) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1073/1999 (OJ L 248, 18.9.2013, p. 1).
Amendment 234 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) Under exceptional circumstances and after having informed the supervisory authority, the Authority may also require information directly to non-selected obliged entities concerned. Such information should not contain personal data.
Amendment 236 #
Proposal for a regulation
Recital 15
Recital 15
(15) With the objective of ensuring a more effective and less fragmented protection of the Union’s financial framework, a limited number of the riskiest obliged entities should be directly supervised by the Authority. As ML/TF risks are not proportional to the size of the supervised entities, other criteria should be appidentifying selected obliged to identify the most risky entitiesentities should primary rely on risk based criteria. In particular, twohree categories should be considered: high-risk cross- border credit and financial institutions, including crypto-asset service providers, with activity in a significant number of Member States, selected periodically; non-financial entities representing a significant market share in their Member States of origin, with activity in a significant number of Member States and which poses material AML/CFT risks and, in exceptional cases, any entity whose material breaches of applicable requirements are not sufficiently or in a timely manner addressed by its national supervisor. Those entities would fall under the category of ‘selected obliged entities’. In addition, the Authority should also supervise credit and financial entities or crypt-asset service providers that belong to a group which parent entity is headquartered in a third country targeted by EU restrictive measures.
Amendment 239 #
Proposal for a regulation
Recital 16
Recital 16
(16) The first two categoryies of credit and financial institutions, or groups of such institutionobliged entities should be assessed in principle every three years, based on a combination of objective criteria related to their cross- border presence and activity, and criteria related to their inherent ML/FT risk profile. Only large complex financial groups present in a number of Member States that could be more efficiently supervised at Union level should be included in the selection process. With respect to credit institutions, minimal cross-border presence for inclusion in the selection process should be based on the number of subsidiaries and branches in different Member States, because risky banking activities of significant volume require a local presence in a form of an establishment. Other financial sector entities may, in contrast, carry out activities that can be sufficiently risky from an ML/TF perspective by means of direct provision of services, for example via a network of agents, but may not have established subsidiaries or branches in a large number of Member States. Therefore, applying the same cross-border criteria, that is to say the one related to freedom of establishment, would result in scoping out large financial sector entities that can have a significant risk profile in a number of Member States, without being established there. Since the volume of activities via direct provision of services is generally smaller than the volume of activities carried out in a branch or a subsidiary, it is appropriate to consider only groups that are established in at least two Member States, but provide services directly or via a network of agents in at least eight more Member StatesAdditional assessment of obliged entities could be carried out if the Authority deems it necessary.
Amendment 246 #
Proposal for a regulation
Recital 17
Recital 17
(17) In order to ensure that only the riskiest obliged entities among those with significant cross-border operations are supervised directly at the level of the Union, the assessment of their inherent risk should be harmonised. Currently, there are various national approaches and supervisory authorities use distinct benchmarks for assessment and classification of inherent ML/TF risk of obliged entities. Using these national methodologies for selection of entities for direct supervision at Union level could lead to a different playing field among them. Therefore, the Authority should be empowered to develop regulatory technical standards laying out a harmonised methodology and benchmarks for categorising the inherent ML/TF risk as low, medium, substantial, or high. The methodology should be tailored to particular types of risks and therefore should follow different categories of obliged entities which are financial institutions in accordance with the Regulation of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing [OP please insert the next number for COM(2021)420]. That methodology should be sufficiently detailed and should establish specific quantitative and qualitative benchmarks considering at least the risk factors related to types of customers served, products and services offered, and geographical areas, including third country jurisdictions that obliged entities operate in or are related to. Specifically, each assessed obliged entity would have its inherent risk profile classified in each Member State where it operates in a manner consistent with the classification of any other obliged entity in the Union. The quantitative and qualitative benchmarks would allow such classification to be objective and not dependent on the discretion of a given supervisory authority in a Member State, or the discretion of the Authority.
Amendment 250 #
Proposal for a regulation
Recital 18
Recital 18
(18) The final selection criterion should warrant a level playing field among directly supervised obliged entities, and to that end, no discretion should be left to the Authority or supervisory authorities in deciding on the list of obliged entities that should be subject to direct supervision. Therefore, where a given assessed obliged entity operates cross-border and falls within the high risk category in accordance with the harmonised methodology in a minimum number of Member States, it should be deemed a selected obliged entity. In case of credit institutions, the cross- border aspect should be addressed by including those credit institutions that are classified as high risk in at least four Member States and where in at least one Member State of those four the entity has been under supervisory or other public investigation for material breaches of AML/CFT requirements. In case of other financial institutions, the cross-border aspect should be addressed by including those financial institutions that are classified as high risk in at least one Member State where they are established and at least five other Member States where they operate by means of direct provision of services.
Amendment 254 #
Proposal for a regulation
Recital 19
Recital 19
(19) To provide transparency and clarity to the relevant institutions, the Authority should publish a list of the selected obliged entities within one month of commencement of a selection round, after verifying the correspondence of information provided by the financial supervisors to the cross-border activities criteria and the inherent risk methodology. Therefore it is important that at the beginning of each selection period, the relevant financial supervisors provide the Authority with up-to-date statistical information to determine the list of financial institutionobliged entities eligible for assessment in accordance with the assessment entry criteria relating to their cross-border operations. In this context, the financial supervisors should inform the Authority about the inherent risk category that a financial institutionobliged entity falls into in their jurisdictions in accordance with the methodology laid down in the regulatory technical standards. The Authority should then assume the tasks related to direct supervision five months after the publication of the list. That time is needed to appropriately prepare the transfer of supervisory tasks from national to Union level, including the formation of a joint supervisory team, and adopting any relevant working arrangements with the relevant financial supervisors.
Amendment 255 #
Proposal for a regulation
Recital 21
Recital 21
(21) The relevant actors involved in the application of the AML/CFT framework should cooperate with each other in accordance with the duty of sincere cooperation enshrined in the Treaties. In order to ensure that the AML supervisory system composed of the Authority and supervisory authorities functions as an integrated mechanism, and that jurisdiction-specific risks and local supervisory expertise are duly taken into account and well utilised, direct supervision of selected obliged entities should take place in the form of joint supervisory teams. These teams should be led by a staff member of the Authority coordinating all supervisory activities of the team. To ensure an adequate understanding of possible national specificities, the team leader (‘JST coordinator’) shouldmay be stationed in the Member State where a selected entity has its headquarter. Unless justified, the JST coordinator should not be from the country where the selected obliged entity is located. The Authority should be in charge of establishment and composition of the joint supervisory team, and the local supervisors should ensure that a sufficient number of their staff members are appointed to the team, taking into account the risk profile of the selected entity in their jurisdiction.
Amendment 256 #
Proposal for a regulation
Recital 23
Recital 23
(23) The Authority should have the power to require actions, internal to the entity, to enhance the compliance of obliged entities with the AML/CFT framework, including reinforcement of internal procedures and changes in the governance structure, going as far as removal of members of the management body, without prejudice to the powers of other relevant supervisory authorities of the same selected entity. Following relevant findings related to non-compliance or partial compliance with applicable requirements by the obliged entity, it should be able to impose specific measures or procedures for particular clients or categories of clients who pose high risks. On-site inspections should be a regular feature of such supervision. If a specific typegeneral investigations ofr on-site inspections requires an authorisation by the national judicial authority, such authorisation should be applied for by the Authority.
Amendment 259 #
Proposal for a regulation
Recital 25
Recital 25
(25) In addition to supervisory powers and in order to ensure compliance, in cases of material breaches of directly applicable requirements, the Authority should be able to impose administrative pecuniary sanctions on the selected obliged entities. Such sanctions should be proportionate and dissuasive, should have both punitive and deterrent effect, and should comply with the principle of ne bis in idem. The maximum amounts of pecuniary sanctions should be in line with those established by [please insert reference – 6th Anti-Money Laundering Directive] and available to all supervisory authorities across the Union. The basic amounts of these sanctions should be determined within the limits established by the AML/CFT framework, taking into account the nature of the requirements that have been breached. In order for the Authority to take aggravating or mitigating factors adequately into account, adjustments to the relevant basic amount should be possible. With the objective to achieve a timely change of the damaging business practice, the Executive Board of the Authority should be empowered to impose periodic penalty payments to compel the relevant legal or natural person to cease the relevant conduct. With the aim to heighten awareness of all obliged entities, by encouraging them to adopt business practices in line with the AML/CFT framework, the sanctions and penalties should be disclosed. The Court of Justice should have jurisdiction to review the legality of decisions adopted by the Authority, the Council and the Commission, in accordance with Article 263 TFEU, as well as for determining their non-contractual liability.
Amendment 262 #
Proposal for a regulation
Recital 28
Recital 28
(28) Certain obliged entities in the financial sector that do not meet the requirements for regular selection might still have a high inherent profile from the money laundering and terrorism financing perspective, or might take on, change or expand activities that entail high risk, not mitigated with a commensurate level of internal controls, thus leading to material breaches of its AML/CFT requirements. If there are indications of possible material breaches of applicable AML/CFT requirements, they may be a sign of gross negligence on part of the obliged entity. The supervisory authority should in most cases be able to adequately respond to any possible breaches and prevent the risks from materialising and leading to gross negligence of AML/CFT requirements. However, in certain cases a national level response might not be sufficient or timely, especially when there are indications that material breaches at the level of the entity have already occurred. In those cases, the Authority should be able to request the local supervisor to take specific measures to remedy the situation, including requesting to issue financial sanctions. To prevent money laundering and terrorism risks from materialising, the deadline for action at national level should be sufficiently short.
Amendment 264 #
(29) The Authority should have the opportunity to request a transfer of supervisory tasks andexercise itself all powers relating to a specific obliged entity on its own initiative in case of inaction or failure to follow its instructions within the provided deadline. Since the transfer of tasks and powers over an obliged entity without the specific request of the financial supervisor to the Authority would require a discretionary decision on the part of the Authority, the Authority should address a specific request to that end to the Commission. In order for the Commission to be able to take a decision coherent with the framework of the tasks allocated to the Authority within the AML/CFT framework, the requestThe Authority should notify the Commission and the European Parliament. The notification of the Authority should enclose an appropriate justification, and should indicate a precise duration of the reallocationexercise of tasks and powers towardshrough the Authority. The timeframe for the reallocation of powersexercise of powers through the Authority should correspond to the time the Authority requires to deal with the risks at entity level, and should initially not exceed three years. The Commission should adopt a decision transferring powers and tasks for supervising the entity to the Authority swiftly, and in any case within a monthperiod during which the obliged entity is under direct supervision of the Authority could be extended if necessary. In such case, the Authority should provide sufficient justification to the national authority and to the Commission.
Amendment 266 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to improve supervisory practices in the non-financial sector, the Authority should carry out peer reviews of supervisory authorities in the non-financial sector, including public authorities overseeing self-regulatory bodies (SRBs), and publish reports with its findings; those could be accompanied by guidelines or recommendations addressed to the relevant public authorities, including public authorities overseeing SRBs. SRBs should be able to participate in peer reviews on a case-by-case basis where they have expressed their willingness to participate. The Authority should make public whether supervisory authorities and obliged entities comply with the guidelines and recommendations it has issued.
Amendment 268 #
Proposal for a regulation
Recital 32
Recital 32
(32) In order to analyse suspicious activity affecting multiple jurisdictions, the relevant FIUs that received linked reports should be able to efficiently conduct joint analyses of cases of common interest. To this end, the Authority should be able to propose, coordinate and support with all appropriate means the joint analyses of cross-border suspicious transactions or activities. The joint analyses should be triggered where there is a need to conduct just such joint analyses pursuant to the relevant provisions in Union law. UpIn addition, the explicit consent of the FIUs participating in the joint analyses, tAuthority should develop guidelines to define the main criteria to identify the need for a joint analysis. The Authority should also be empowered to settle potential disagreements between the participating FIUs. The staff of the Authority supporting the conduct of joint analyses should be able to receive and process all necessary data and information, including the data and information pertaining to the analysed cases.
Amendment 269 #
Proposal for a regulation
Recital 33
Recital 33
(33) In order to improve the effectiveness of and the need for the joint analyses, the Authority should be able to initiate reviews ofestablish, review and update the methods, procedures and conduct of the joint analyses, with the aim of determining the lessons learnt and of improving and promoting these analyses. The feedback on the joint analysis should enable the authority to issue conclusions and recommendations which would ultimately lead to the regular refinement and improvement of the methods and procedures for the conduct of joint analyses.
Amendment 270 #
Proposal for a regulation
Recital 35
Recital 35
(35) The Authority should manage, host, and maintain FIU.net, the dedicated IT system allowing FIUs to cooperate and exchange information amongst each other and, where appropriate, with their counterparts from third countries and third parties. The Authority should, in cooperation with Member States, keep the system up-to-date. To this end, the Authority should, in consultation with the EDPS, ensure that at all times the most advanced available state-of-the- art technology is used for the development of the FIU.net, subject to a cost-benefit analysis. and to data protection and fundamental rights impact assessments. The Authority should also ensure that the technology used is human-centred and guided by the principles of transparency, explainability, accountability and responsibility.
Amendment 275 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) In order to ensure a sufficient convergence of practices and wide spreading of best practices, the Authority should conduct regular peer reviews of the national FIUs. To this end, the Authority should establish ad hoc peer review committees composed of staff from the Authority and members of FIUs. The findings of these reviews should only be shared with FIUs and the Commission.
Amendment 276 #
Proposal for a regulation
Recital 36 b (new)
Recital 36 b (new)
(36b) To ensure a smooth coordination between FIUs, the Authority should act as a mediator in case of disagreement between FIUs on matters related to cross- border cases or operational activities related to the Authority tasks and responsibilities. The Authority and FIUs should also provide feedback on the use of information that have been requested to other FIUs or to the Authority
Amendment 277 #
Proposal for a regulation
Recital 37
Recital 37
(37) The establishment of a solid governance structure within the Authority is essential for ensuring effective exercise of the tasks granted to the Authority, and for an efficient and objective decision- making process. Due to the complexity and variety of the tasks conferred on the Authority in both the supervision and FIU areas, the decisions cannot be taken by a single governing body, as is often the case in decentralised agencies. Whereas certain types of decisions, such as decisions on adoption of common instruments, need to be taken by representatives of appropriate authorities or FIUs, and respect voting rules of the TFEU, certain other decisions, such as the decisions towards individual selected obliged entities, or individual authorities, require a smaller decision- making body, whose members should be subject to appropriate accountability arrangements. Therefore, the Authority should comprise a General Board, and an Executive Board composed of five full- time independent members and of, the Chair of the Authority, a Civil Society Advisory Body and a FIUs Coordination Committee.
Amendment 278 #
Proposal for a regulation
Recital 38
Recital 38
(38) In order to ensure the relevant expertise, the General Board should have two compositions. For all the decisions on the adoption of acts of general application such as the regulatory and implementing technical standards, guidelines, recommendations, and opinions relating to FIUs, it should be composed of the heads of FIUs of Member States (‘General Board in FIU composition’). For the same types of acts related to direct or indirect supervision of financial and non-financial obliged entities, it should be composed of the heads of AML/CFT supervisors which are public authorities (‘General Board in supervisory composition’). All parties represented in the General Board should make efforts to limit the turnover of their representatives, in order to ensure continuity of the Board's work. All parties should aim to achieve a balanced representation between men and womenensure gender balance on the General Board.
Amendment 279 #
Proposal for a regulation
Recital 39
Recital 39
(39) For a smooth decision making process, the tasks should be clearly divided: the General Board in FIU composition should decide on the relevant measures for FIUs, the General Board in supervisory composition should decide on delegated acts, guidelines and similar measures for obliged entities. The General Board in supervisory composition should also be able to provide its opinion and advice to the Executive Board on all draft decisions towards individual selected obliged entities proposed by the Joint Supervisory Teams. In absence of such opinion or advice, the decisions should be taken by the Executive Board. Whenever the Executive Board deviates from the advice provided by the General Board in supervisory composition in the final decision, it should explain the reasons thereof in writing. In order to ensure a smooth decision-making process, a FIUs coordination Committee should be established to prepare the decisions to be taken at the level of the General Board in FIU composition.
Amendment 280 #
Proposal for a regulation
Recital 40
Recital 40
(40) For the purposes of voting and taking decisions, each Member State should have one voting representative. Therefore, the heads of public authorities should appoint a permanent representative as the voting member of the General Board in supervisory composition. Alternatively, depending on the subject-matter of the decision or agenda of a given General board meeting, public authorities of a Member State may decide on an ad-hoc representative. In their appointments to the General Board, the public authorities of Member States shall ensure gender balance, in particular with regard to the composition of the Board as a body. The practical arrangements related to decision- making and voting by the General Board members in supervisory composition should be laid down in the Rules of Procedure of the General Board, to be developed by the Authority.
Amendment 282 #
Proposal for a regulation
Recital 41
Recital 41
(41) The Chair of the Authority should chair the General Board meetings and have a right to vote when decisions are taken by simple majority. The Commission should be a non-voting member on the General Board. A representative of the Civil Society Advisory Body should be entitled to participate as an observer. To establish good cooperation with other relevant institutions, the General Board should also be able to admit other non-voting observers, such as a representative of the Single Supervisory Mechanism and of each of the three European Supervisory Authorities (EBA, EIOPA and ESMA) for the General Board in its Supervisory Composition and Europol, the EPPO and Eurojust for the General Board in its FIU composition, where matters that fall under their respective mandates are discussed or decided upon. In order to ensure that the General Board avails itself of plurality of expertise when taking its decisions, in both supervisory and FIU composition, other organisations dealing with AML/CTF should be invited in consultative capacity at its meetings. To allow a smooth decision making process, decisions of the General Board should be taken by a simple majority, except for decisions concerning draft regulatory and implementing technical standards, guidelines and recommendations which should be taken by a qualified majority of Member State representatives in accordance with voting rules of the TFEU. For the purposes of transparency of decisions adopted by the General Board, the Authority should provide the European Parliament with the records of the proceedings of the meetings.
Amendment 284 #
Proposal for a regulation
Recital 42
Recital 42
(42) The governing body of the Authority should be the Executive Board composed of the Chair and the Vice-Chair of the Authority and of five full time members, appointed by the General Board based on the gender-based shortlist by the Commission, after the approval of the European Parliament. With the aim of ensuring a speedy and efficient decision making process, the Executive Board should be in charge of planning and execution of all the tasks of the Authority except where specific decisions are explicitly allocated to the General Board. In order to ensure objectivity and appropriate rapidity of the decision-making process in the area of direct supervision of the selected obliged entities, the Executive Board should take all binding decisions addressed to selected obliged entities. In addition, together with a representative of the Commission the Executive Board should be collectively responsible for the administrative and budgetary decisions of the Authority. The consent of the Commission should be required when the Executive Board is taking decisions related to the budget administration, procurement, recruitment, and audit of the Authority, given that a portion of funding of the Authority will be provided from Union budget.
Amendment 286 #
Proposal for a regulation
Recital 43
Recital 43
(43) To allow for swift decisions, all decisions of the Executive Board, including the decision where the Commission has a right to vote, should be taken by simple majority, with the Chair holding a casting vote in case of a tied vote. To ensure sound financial management of the Authority, the Commission’s consent should be required for decisions related to budget, administration and recruitment. The voting members of the Executive Board other than the Chair or the Vice-Chair should be selected by the General Board, based on a gender-based short-list established by the Commission., after having received approval of the European Parliament. Should the Parliament consider that the selected candidates do not meet the relevant qualification criteria, the selection procedure should recommence
Amendment 288 #
Proposal for a regulation
Recital 44
Recital 44
(44) To ensure the independent functioning of the Authority the five Members of the Executive Board, the Chair and the Vice-Chair of the Authority should act independently and in the interest of the Union as a whole. They should behave, both during and after their term of office, with integrity and discretion as regards the acceptance of certain appointments or benefits. To avoid giving any impressionIn order to avoid that a Member of the Executive Board might use its position as a Member of the Executive Board of the Authoritypotentially uses his or her position to get a high-ranking appointment in the private sector after his term of office and to prevent any post-public employment conflicts of interests, a cooling-off period for the five Members of the Executive Board, including the Chair or the Vice- Chair of the Authority, should be introduced in a way that they do not acquire any role that may give rise to any conflict of interests or situations which may objectively be perceived as a conflict of interests.
Amendment 290 #
Proposal for a regulation
Recital 45
Recital 45
(45) The Chair and the Vice-Chair of the Authority should be appointed on the basis of a gender-balanced shortlist of candidates proposed by the Commission based on objective criteria by the Council after approval by the European Parliament. He or sheThe shortlisted candidates should be heard by the competent committees prior to their approval by the Parliament. The Chair and, when he or she is prevented from attending to his or her duties the Vice-Chair, should represent the Authority externally and should report on the execution of Authority’s tasks.
Amendment 291 #
Proposal for a regulation
Recital 46
Recital 46
(46) The Executive Director of the Authority should be appointed by the Executive Board based on a gender-based shortlist from the Commission, after approval by the European Parliament. The Executive Director of the Authority should be a senior administrative official of the Authority, in charge of the day-to-day management of the Authority, and responsible for budget administration, procurement, and recruitment and staffing.
Amendment 294 #
Proposal for a regulation
Recital 46 a (new)
Recital 46 a (new)
(46a) To ensure close involvement of the representatives of the civil society, given the nature and extent of the powers exercised by the Authority, the Authority should set up a Civil Society Advisory Body, with the support of the Commission. Its composition should be determined by the General Board after consultation with the European Parliament. Such advisory body should be consulted regularly, and in any case whenever the Authority is required by the regulation to conduct public consultation with regard to the adoption of regulatory technical standards, implementing technical standards or when issuing guidelines and recommendations. Such consultation should be conducted unless justified on the grounds of urgency or proportionality. The Body's members should offer guarantees of acting in independent and objective manner and be provided with sufficient resources and expertise commensurate with its tasks.
Amendment 295 #
Proposal for a regulation
Recital 48
Recital 48
(48) It is necessary to provide the Authority with the requisite human, financial resources and advanced IT tools accompanied by adequate safeguards so that it can fulfil the objectives, tasks and responsibilities assigned to it under this Regulation. In order to ensure that the Authority can respond flexibly to human resource needs, it is in particular appropriate that it has autonomy regarding the recruitment of contract agents. To guarantee the proper functioning of the Authority, funding should be provided by a combination of fees levied on certain obliged entities and a contribution from the Union budget, depending on the tasks and functions. The budget of the Authority should be part of the Union budget, confirmed by the Budgetary Authority on the basis of a proposal from the Commission. The Authority should submit to the Commission a draft budget and an internal financial regulation for approval.
Amendment 298 #
Proposal for a regulation
Recital 49
Recital 49
(49) To ensure that the Authority can also fulfil its tasks as direct and indirect supervisor of obliged entities, an adequate mechanism for the determination and the collection of the fees should be introduced. As regards the fees levied on selected obliged entities and certain non-selected obliged entities, the methodology for their calculation and the process of collection of fees should be developed in a delegated act of the Commission. The methodology should be based on the risk of the directly and indirectly supervised entities as well as their turnover or revenue. The methodology established should ensure sufficient and stable revenue for the Authority in order to enable the Authority with the duties it is entrusted to.
Amendment 306 #
Proposal for a regulation
Recital 61 a (new)
Recital 61 a (new)
(61a) For the purposes of this Regulation, when the notion of competent authorities refers to investigating and prosecuting authorities, it shall be interpreted as including the central and decentralised levels of the European Public Prosecutor's Office (EPPO) with regard to the Member States that participate in the enhanced cooperation on the establishment of the EPPO.
Amendment 307 #
Proposal for a regulation
Recital 62
Recital 62
(62) Since both predicate offenses as well as the crime of money laundering itself often are of global nature, and given that the Union obliged entities also operate with and in third countries, effective cooperation with all the relevant third country authorities in the areas of both supervision and functioning of FIUs are crucial for strengthening the Union AML/CFT framework. Given the Authority’s unique combination of direct and indirect supervision and FIU cooperation-related tasks and powers, it should be able to take an active role in such external cooperation arrangements. Specifically, the Authority should be empowered to develop contacts and enter into administrative arrangements with authorities in third countries that have regulatory, supervisory and FIU-related competences. These contacts and administrative arrangements should be public. The Authority’s role could be particularly beneficial in cases where the interaction of several Union public authorities and FIUs with third country authorities concerns matters within the scope of the Authority’s tasks. In such cases, the Authority should have a leading role in facilitating this interaction.
Amendment 308 #
Proposal for a regulation
Recital 62 a (new)
Recital 62 a (new)
(62a) For the purpose of identifying third countries with strategic deficiencies or compliance weaknesses in their AML/CFT regime and posing a threat to the Union’s financial system, the Authority should assess the risks and threats stemming from third countries taking into account specific criteria. The Authority should notify the outcome of its assessment to the Commission and simultaneously disclose it on its website. As a matter of principle, the Commission should fully include the countries identified by the Authority in its Delegated Acts.
Amendment 309 #
Proposal for a regulation
Recital 62 b (new)
Recital 62 b (new)
(62b) Following a request from the European Parliament, the Council, the Commission or a financial supervisor or on its own initiative, the Authority should conduct analysis based on specific criteria for the purpose of identifying third country entities posing a threat to the Union’s financial system. Based on the assessment by the Authority, the Commission should adopt a Delegated Act identifying the third-country entities posing a threat to the Union’s financial system and empowering the financial supervisor and the Authority to take action.
Amendment 312 #
Proposal for a regulation
Recital 64 a (new)
Recital 64 a (new)
(64a) At five-yearly intervals after the Authority becomes fully operational, the Commission should conduct a thorough review of the Authority’s performance in relation to its mandate, objectives, tasks and sufficiency of funding.
Amendment 323 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘selected obliged entity’ means a credit institution, a financial institution, or a group of credit or financial institutions at the highest level of consolidation in the Union, or crypto-asset service providers or any other entity which is under direct supervision by the Authority pursuant to Article 13;
Amendment 324 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘non-selected obliged entity’ means a credit institution, a financial institution, or a group of credit institutions or financial institutions at the highest level of consolidation in the Union,ny obliged entity other than a selected obliged entity;
Amendment 336 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 – point d a (new)
Article 2 – paragraph 1 – point 5 – point d a (new)
(da) a supervisory authority as defined in article 13 (10) of Directive EU 2009/138/EC.
Amendment 346 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
The Authority shall have its seat in […] choice of the location of the seat of the Authority shall comply with the following conditions: (a) it shall provide a high quality of the national AML/CFT framework; (b) it shall benefit from the experience of national, regional and local authorities; (c) it shall ensure an equitable geographical distribution of EU authorities amongst Member States; (d) it shall not affect the Authority’s execution of its tasks and powers, the organisation of its governance structure, the operation of its main organisation, or the main financing of its activities; (e) it shall ensure that the Authority is able to recruit the high-qualified and specialised staff it requires to perform the tasks and exercise the powers provided by this Regulation; (f) it shall make available high qualify staff training centre(s) for AML/CFT activities, adequate security, reputation and background; (g) it shall ensure that it can be set up on site upon the entry into force of this Regulation; (h) it shall ensure appropriate accessibility of the location, the existence of adequate education facilities for the children of staff members, appropriate access to the labour market, social security and medical care for both children and spouses.
Amendment 356 #
Proposal for a regulation
Article 5 – paragraph 1 – point b a (new)
Article 5 – paragraph 1 – point b a (new)
(ba) contribute to the establishment of the list of high risk third countries as defined in [add reference to AML Regulation]
Amendment 361 #
Proposal for a regulation
Article 5 – paragraph 1 – point d
Article 5 – paragraph 1 – point d
(d) establish a central AML/CFT database of information collected from supervisors and supervisory authorities and keep it up to date;
Amendment 362 #
Proposal for a regulation
Article 5 – paragraph 1 – point d a (new)
Article 5 – paragraph 1 – point d a (new)
(da) establish a non-exhaustive public register of non-EU crypto-asset service providers that are not registered or licensed, based on information submitted by the competent authorities or third countries supervisors or on information in its possess and keep it up to date;
Amendment 364 #
Proposal for a regulation
Article 5 – paragraph 1 – point e a (new)
Article 5 – paragraph 1 – point e a (new)
(ea) manage and maintain the European Asset Data (EAD) single access point as referred to in [insert reference proposal for 6th Anti-Money Laundering Directive], providing at least to competent authorities, a minimum set of information, in a predefined format, including beneficial ownership information available.
Amendment 366 #
Proposal for a regulation
Article 5 – paragraph 1 – point f
Article 5 – paragraph 1 – point f
(f) monitor and support the implementation of asset freezes under the Union restrictive measures across the internal market;across the internal market of the measures adopted under the Union restrictive measures, including asset freezes and transactions ban, and publish data sets on asset freezes and confiscations
Amendment 375 #
Proposal for a regulation
Article 5 – paragraph 2 – point a
Article 5 – paragraph 2 – point a
(a) ensure group-wide compliance with the requirements applicable to the selected obliged entities pursuant to legislative acts referred to in Article 1(2), and any other legally binding Union acts that impose AML/CFT-related obligations on financial institutions and non-financial entities;
Amendment 377 #
Proposal for a regulation
Article 5 – paragraph 2 – point a a (new)
Article 5 – paragraph 2 – point a a (new)
(aa) set-up colleges of supervisors for selected obliged entities, to ensure a sufficient level of coordination with supervisory authorities of Member States in which the selected obliged entity operates;
Amendment 384 #
Proposal for a regulation
Article 5 – paragraph 3 – point b
Article 5 – paragraph 3 – point b
(b) carry out periodic reviews to ensure that all financial supervisors have adequate resources and powers necessary for the performance ofperform their tasks in the area of AML/CFT adequately;
Amendment 385 #
Proposal for a regulation
Article 5 – paragraph 3 – point b a (new)
Article 5 – paragraph 3 – point b a (new)
(ba) request financial supervisors to investigate possible breaches of requirements applicable to obliged entities and to consider imposing sanctions or remedial actions in respect of such breaches;
Amendment 393 #
Proposal for a regulation
Article 5 – paragraph 3 – point g
Article 5 – paragraph 3 – point g
(g) provide assistance to financial supervisors, following their specific requests, including the requests to settle any disagreements on the measures to be takfor mediation in case of any disagreement between fin relation to an obliged entity.ancial supervisors
Amendment 402 #
Proposal for a regulation
Article 5 – paragraph 4 – point d
Article 5 – paragraph 4 – point d
(d) carry out periodic reviews to ensure that all non-financial supervisors have adequate resources and powers necessary for the performance ofperform all their tasks in the area of AML/CFT adequately;
Amendment 403 #
Proposal for a regulation
Article 5 – paragraph 4 – point d a (new)
Article 5 – paragraph 4 – point d a (new)
(da) perform assessments of the strategies, capacities and resources of non-financial supervisors in the area of AML/CFT and make the results of such assessments available to all relevant non- financial supervisors;
Amendment 406 #
Proposal for a regulation
Article 5 – paragraph 4 – point f a (new)
Article 5 – paragraph 4 – point f a (new)
(fa) coordinate staff and information exchanges among non-financial supervisors in the Union.
Amendment 412 #
Proposal for a regulation
Article 5 – paragraph 5 – point c a (new)
Article 5 – paragraph 5 – point c a (new)
(ca) Issue guidelines and recommendations in case of identified vulnerabilities or deficiencies that are not sufficiently addressed
Amendment 413 #
Proposal for a regulation
Article 5 – paragraph 5 – point d a (new)
Article 5 – paragraph 5 – point d a (new)
(da) provide assistance to FIUs, following their specific requests, including the requests for mediation in case of disagreement;
Amendment 414 #
Proposal for a regulation
Article 5 – paragraph 5 – point e
Article 5 – paragraph 5 – point e
(e) develop and make available to FIUs IT and artificial intelligence services and tools for secure information sharing, including by hosting FIU.net pursuant article 37 of this Regulation ;
Amendment 422 #
Proposal for a regulation
Article 6 – paragraph 2 – point b
Article 6 – paragraph 2 – point b
(b) to issue guidelines and recommendations, as provided in Article 43;
Amendment 423 #
Proposal for a regulation
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
(c) to issue requests to act and instructions on measures that should be taken towards non-selected obliged entities pursuant to Section 4 of Chapter II.
Amendment 426 #
Proposal for a regulation
Article 6 – paragraph 2 – point c a (new)
Article 6 – paragraph 2 – point c a (new)
(ca) to exercise tasks and powers in exceptional circumstances pursuant Article 30
Amendment 430 #
Proposal for a regulation
Article 6 – paragraph 3 – point c
Article 6 – paragraph 3 – point c
(c) to obtain and process information and data required for theinitiating and coordination ofng joint analyses as specified in Article 33;
Amendment 431 #
Proposal for a regulation
Article 6 – paragraph 3 – point d
Article 6 – paragraph 3 – point d
(d) to issue guidelines and recommendations, as provided in Article 43.
Amendment 433 #
Proposal for a regulation
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4a. When exercising the powers provided for in paragraph 4, and in accordance with Article 24 of Council Regulation(EU) 2017/1939, the Authority shall without undue delay inform the EPPO of any criminal conduct in respect of which it could exercise its competence in accordance with Article 22 and Article 25(2) and (3) of that Regulation. Pursuant to Article 8 of Regulation 883/2013 , the Authority shall transmit to OLAF without delay any information relating to possible cases of fraud, corruption or any other illegal activity affecting the financial interests of the Union. Following-up on the initial information, on its own initiative or upon request and in accordance with the respective legal framework, the Authority shall provide the EPPO, or the competent national judicial or law enforcement authority, with any other connected information.
Amendment 434 #
Proposal for a regulation
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4a. The Authority may temporarily prohibit or restrict the provision of certain banking, investment or crypto-asset services or activities that may pose a threat to the Union’s financial system, or, if so required, in the case of an emergency situation in accordance with, and under the conditions laid down in, Article 30. The Authority shall review the decision referred to in the first subparagraph at appropriate intervals and at least every six months. Based on proper analysis which aims to assess the impact on the customer or consumer, the Authority may decide to lift the prohibition or restriction.
Amendment 440 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. The Authority and supervisory authorities shall be subject to a duty of cooperation in good faith, and to an obligation to exchange information, including regarding internal policies, controls and procedures related to politically exposed persons and suspicious transactions reports .
Amendment 458 #
Proposal for a regulation
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Where the scope and Union-wide relevance of thematic reviews justify coordination at Union level, they shall be carried out jointly by the relevant supervisory authorities and shall be coordinated by the Authority. The Executive Board may propose joint thematic review, based on the internal risks and vulnerabilities analysis run by the Authority. The General Board in supervisory composition shall draw up a list of joint thematic reviews. The General Board in supervisory composition shall draw up a report relating to the conduct, subject-matter and outcome of each joint thematic review. The Authority shall publish that report on its website.
Amendment 463 #
Proposal for a regulation
Article 10 – paragraph 5
Article 10 – paragraph 5
5. The Authority shall make every effort to provide the requested assistance, including by mobilising its own human resources as well as by ensuring mobilisation of resources at supervisory authorities on a voluntary basis.
Amendment 465 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. The Authority shall establish and keep up to date a central database of information collected pursuant to paragraph 2. The Authority shall analyse the information received and ensure that it is made available to supervisory authorities and non AML/CFT authorities on a need- to-know and confidential basis. The Authority mayshall share the results of its analysis on its own initiative with supervisory authorities, and where relevant to non-AML/CFT authorities, for the purposes of facilitating their supervisory activities.
Amendment 473 #
Proposal for a regulation
Article 11 – paragraph 2 – point e a (new)
Article 11 – paragraph 2 – point e a (new)
(ea) an overview of the main risks and vulnerabilities identified over the previous year;
Amendment 475 #
Proposal for a regulation
Article 11 – paragraph 2 – point h a (new)
Article 11 – paragraph 2 – point h a (new)
(ha) qualitative information regarding the supervisory plans and priorities and the areas where the authority is building specific expertise
Amendment 476 #
Proposal for a regulation
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
2a. The Authority shall publish the information collected pursuant paragraph 2 point (a), (g), (h) and statistical information about the type and number of supervised obliged entities in each Member State. A summary of non- confidential findings regarding the information collected pursuant paragraph 2 point (c), (d), (e) and (f) shall be made available to obliged entities and to the public.
Amendment 483 #
Proposal for a regulation
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
2b. Competent authorities may share, in accordance with national law, any additional information that they deem relevant to the prevention and countering of the use of the financial system for the purpose of money laundering or terrorist financing with the central database referred to in paragraph 1.
Amendment 503 #
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Amendment 506 #
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Article 11a Direct requests for information to obliged entities Under exceptional circumstances, the Authority may also require the necessary information directly to non-selected obliged entities concerned, after having informed the supervisory authority. The information directly transmitted by obliged entities to the Authority should not contain personal data.
Amendment 510 #
Proposal for a regulation
Article 12 – title
Article 12 – title
Assessment of financial obliged entities for the purposes of selection for direct supervision
Amendment 516 #
Proposal for a regulation
Article 12 – paragraph 1 – introductory part
Article 12 – paragraph 1 – introductory part
1. For the purposes of carrying out the tasks listed in Article 5(2) as regards financial entities, the Authority shall carry out a periodic assessment of the following obliged entities, based on criteria and following the process specified in paragraphs 2 to 6 of this Article and in Article 13:
Amendment 523 #
Proposal for a regulation
Article 12 – paragraph 1 – point a
Article 12 – paragraph 1 – point a
(a) cCredit institutions that are established in at least sevenor financial institutions or crypto-asset service providers which parent company is established in the EU, or credit institutions or financial institutions that are part of a wider group in which the parent entity is not a credit or a financial institution or crypto-asset service providers, that operates in at least 5 Member Sstates, including the Member State of establishment and the Member States where they are operating via subsidiaries or branche, either via establishment, free provision of services or via a network of representatives agents;
Amendment 532 #
Proposal for a regulation
Article 12 – paragraph 1 – point b
Article 12 – paragraph 1 – point b
(b) otheCredit institutions or financial institutions that operate in at least ten Member States, including the Member State of establishment, another Member State where they are operating via a subsidiary or a branch, and all other Member States where they are operating by means of director crypto-asset service providers, which parent entity is headquartered in a third-country, that operate in at least 3 Member States, either via establishment, free provision of services or via a network of representatives agents.
Amendment 534 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1 (new)
Article 12 – paragraph 1 – subparagraph 1 (new)
The Authority shall keep the relevant supervisory authorities informed of the assessments of obliged entities within their supervisory remits.
Amendment 538 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. TAfter having assessed the inherent risk profile of the assessed obliged entities referred to in paragraph 1, point (a) or (b), the Authority shall be classifiedy them as low, medium, substantial or high risk in each jurisdiction they operate in, based on the benchmarks and following the methodology set out in the regulatory technical standard referred to in paragraph 5.
Amendment 552 #
Proposal for a regulation
Article 12 – paragraph 3 – point j a (new)
Article 12 – paragraph 3 – point j a (new)
(ja) crypto-asset service providers
Amendment 558 #
Proposal for a regulation
Article 12 – paragraph 4 – introductory part
Article 12 – paragraph 4 – introductory part
4. For each category of obliged entities referred to in paragraph 43, the benchmarks in the assessment methodology shall be based on the risk factor categories related to customer, products, services, transactions, delivery channels and geographical areas. The benchmarks shall be established for at least the following indicators of inherent risk in any Member State they operate in:
Amendment 567 #
Proposal for a regulation
Article 12 – paragraph 4 – point a
Article 12 – paragraph 4 – point a
(a) with respect to customer-related risk: the share of non-resident customers, the share of customers located in high- risk third countries, the presence and share of customers identified as Politically Exposed persons (‘PEPs’);
Amendment 586 #
Proposal for a regulation
Article 12 – paragraph 5 – introductory part
Article 12 – paragraph 5 – introductory part
5. The Authority shall develop draft regulatory technical standards setting out the methodology with the benchmarks referred to in paragraph 4 for classifying the inherent risk profile of any cross-border credit or financial institution at group level, or at entity level in case the entity does not belong to a group, in each Member State it operates in as low, medium, substantial or high.
Amendment 591 #
Article 12a Assessment of obliged non-financial entities for the purposes of selection for direct supervision 1. For the purposes of carrying out the tasks listed in Article 5(2) for non- financial entities, the Authority shall assess whether the entities complying with all the following criteria should be subject to direct supervision, based on the risk assessment described in paragraph 2: (a) Entities operating in more than 5 Member States either via establishment, free provision of services or via a network of representatives agents; (b) Entities with a market share of at least 10% in their Member State of establishment; (c) Entities which have been under supervisory or other public investigations for breaches of the acts referred to in Article 1(2) in the previous 5 years. 2. The Authority shall select the entities to be directly supervised following a risk based assessment. This assessment should rely on objective benchmarks, specific for each sector. The Commission is empowered to adopt a Delegated Act specifying these benchmarks by 1st January 2025. 3. The Authority shall develop draft regulatory technical standards setting out the methodology with the benchmarks referred to in paragraph 2 for classifying the inherent risk profile of any cross- border non-financial entity, in each Member State it operates in as low, medium or high.
Amendment 594 #
Proposal for a regulation
Article 13 – paragraph 1 – introductory part
Article 13 – paragraph 1 – introductory part
1. The following obliged entities classified as high risk pursuant article 12 and 12a shall qualify as a selected obliged entity:ies. In addition, credit institutions, financial entities or crypto-asset service providers that belong to a group whose parent entity is headquartered in a third country targeted by EU restrictive measures shall be supervised by AMLA.
Amendment 600 #
Proposal for a regulation
Article 13 – paragraph 1 – point a
Article 13 – paragraph 1 – point a
Amendment 604 #
Proposal for a regulation
Article 13 – paragraph 1 – point b
Article 13 – paragraph 1 – point b
Amendment 616 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. The Authority shall commence the first selection process on 1 July 2025 and shall conclude the selection within one month. The selection shall be made every three years after the date of commencement of the first selection, or at any moment if the Authority deems it justified and shall be concluded within one month in each selection period. The list of the selected obliged entities shall be published by the Authority without undue delay upon completion of selection process. The Authority shall commence the direct supervision of the selected obliged entities five months after publication of the list.
Amendment 622 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Without prejudice to the Authority’s power pursuant to Article 20(2), point (g), to receive directly, or have direct access to, information reported, on an ongoing basis, by selected obliged entities, financial supervisors and supervisory authorities shall provide the Authority with all information necessary for carrying out the tasks conferred on the Authority.
Amendment 623 #
Proposal for a regulation
Article 14 – paragraph 1 a (new)
Article 14 – paragraph 1 a (new)
1a. When an obliged entity becomes a selected obliged entity, the Authority and the national competent authority shall agree on working arrangements to ensure a smooth transition of the supervisory responsibilities.
Amendment 624 #
Proposal for a regulation
Article 14 – paragraph 1 b (new)
Article 14 – paragraph 1 b (new)
1b. Where appropriate, the Authority shall communicate to supervisory authorities the information they need to pursue their supervisory tasks.
Amendment 625 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Where appropriate, financial supervisors and supervisory authorities shall be responsible for assisting the Authority with the preparation and implementation of any acts relating to the tasks referred to in Article 5(2), point (b), as regards all selected obliged entities, including assistance in verification activities. They shall follow the instructions given by the Authority when performing those tasks.
Amendment 626 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Authority shall develop implementing technical standards specifying the conditions under which financial supervisors and supervisory authorities are to assist the Authority pursuant to paragraph 2.
Amendment 627 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. A joint supervisory team shall be established for the supervision of each selected obliged entity. Each joint supervisory team shall be composed of staff from the Authority and from the financial supervisory authorities responsible for supervision of the selected obliged entity at national level. The members of the joint supervisory team shall be appointed in accordance with paragraph 4 and shall work under the coordination of a designated staff member from the Authority (‘JST coordinator’).
Amendment 630 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The JST coordinator shall ensure the coordination of the work within the joint supervisory team. Joint supervisory team members shall follow the JST coordinator’s instructions as regards their tasks in the joint supervisory team. This shall not affect their tasks and duties within their respective financial supervisors. TWhere necessary, the JST coordinator shallmay be delegated from the Authority to the financial supervisor in the Member State where a selected obliged entity has its headquarters, upon agreement of the relevant financial supervisors. Unless justified, the JST coordinator shall not be from the country where the selected obliged entity is located. The duration of the delegation shall be limited to the time period during which the Authority carries out supervisory tasks with respect to the selected obliged entity.
Amendment 631 #
Proposal for a regulation
Article 15 – paragraph 3 – point d
Article 15 – paragraph 3 – point d
(d) liaising with financial supervisors where necessary for exercises of supervisory tasks in any Member State where a selected obliged entity is established.
Amendment 632 #
Proposal for a regulation
Article 15 – paragraph 4
Article 15 – paragraph 4
4. The Authority shall be responsible for the establishment and the composition of joint supervisory teams. The respective financial supervisors shall appoint one or more persons from their staff as a member or members of a joint supervisory team. A financial supervisor staff member may be appointed as a member of more than one joint supervisory team. The Authority shall ensure that the JST is composed of staff with sufficient degree and diversity of knowledge, background, expertise and experience.
Amendment 637 #
Proposal for a regulation
Article 15 – paragraph 5
Article 15 – paragraph 5
5. The Authority and financial supervisors shall consult each other and agree on the use of staff with regard to the joint supervisory teams.
Amendment 659 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. If general investigations provided for in Article 17 or an on-site inspection provided for in Article 18 requires authorisation by a judicial authority in accordance with national law, the Authority shall apply for such an authorisation.
Amendment 674 #
Proposal for a regulation
Article 20 – paragraph 2 – point i
Article 20 – paragraph 2 – point i
(i) to proposerecommend the withdrawal of licence of a selected obliged entity to the authority that has granted such license.
Amendment 681 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. Where the Executive Board of the Authority finds that a selected obliged entity has, intentionally or negligently, committed a material breach of directly applicable requirements contained in [OP please insert the next number to the AMLR, COM (2021)420] or [OP please insert the next number to the TFR, COM(2021)422], it shall adopt a decision imposing administrative pecuniary sanctions, in accordance with paragraph 3. Administrative pecuniary sanctions shall, depending on the circumstances of each individual case, be imposed in addition to, or instead of, the requests referred to in Article 20(2).
Amendment 683 #
Proposal for a regulation
Article 21 – paragraph 3 – point a
Article 21 – paragraph 3 – point a
(a) for material breaches of one or more requirements related to customer due diligence, group policies and procedures and/or reporting obligations that have been identified in two or more Member States where a selected obliged entity operates, the sanction shall amount to at least EUR 1 000 000 and shall not exceed EUR 2 000 000 or 1% of the annual turnover, whichever is higher;
Amendment 685 #
Proposal for a regulation
Article 21 – paragraph 3 – point b
Article 21 – paragraph 3 – point b
(b) for material breaches of one or more requirements related to customer due diligence, internal policies, controls and procedures and/or reporting obligations that have been identified one Member State where a selected obliged entity operates, the sanction shall amount to at least EUR 500 000 and shall not exceed EUR 1 000 000 or 0,5% of the annual turnover, whichever is higher;
Amendment 687 #
Proposal for a regulation
Article 21 – paragraph 3 – point c
Article 21 – paragraph 3 – point c
(c) for material breaches of all other requirements that have been identified in two or more Member States where a selected obliged entity operates, the sanction shall amount to at least EUR 1 000 000 and shall not exceed EUR 2 000 000;
Amendment 689 #
Proposal for a regulation
Article 21 – paragraph 3 – point d
Article 21 – paragraph 3 – point d
(d) for material breaches of all other requirements that have been identified in one Member State the sanction shall amount to at least EUR 500 000 and shall not exceed EUR 1 000 000;
Amendment 692 #
Proposal for a regulation
Article 21 – paragraph 3 – point e
Article 21 – paragraph 3 – point e
(e) for material breaches of the decisions of the Authority referred to in Article 6(1), the sanction shall amount to at least EUR 100 000 and shall not exceed EUR 1 000 000.
Amendment 695 #
Proposal for a regulation
Article 21 – paragraph 6
Article 21 – paragraph 6
6. The maximum amount of a sanction for material breaches referred to in paragraph 2, points (a) and (b) shall not exceed 10 % of the total annual turnover of the obliged entity in the preceding business year, after application of the coefficients referred to in paragraphs 4 and 5.
Amendment 698 #
Proposal for a regulation
Article 21 – paragraph 7
Article 21 – paragraph 7
7. The maximum amount of a sanction for material breaches referred to in paragraph 2, points (c) and point (d) shall not exceed EUR 10 000 000 or, in the Member States whose currency is not the Euro, the corresponding value in the national currency, after application of the coefficients referred to in paragraphs 4 and 5.
Amendment 701 #
Proposal for a regulation
Article 22 – paragraph 2
Article 22 – paragraph 2
2. The periodic penalty payment shall be effective and proportionate. The periodic penalty payment shall be imposed on a daily basis following the notification of the Authority’s decision until the selected obliged entity or person concerned complies with the relevant decision referred to in paragraph 1.
Amendment 703 #
Proposal for a regulation
Article 22 – paragraph 4
Article 22 – paragraph 4
Amendment 708 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
1. The Authority shall disclose to the public every administrative pecuniary sanction and periodic penalty payment that has been imposed on a selected obliged entity pursuant to Articles 21 and 22, unless such disclosure to the public would cause disproportionate damage to the parties involved.
Amendment 713 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Where, in carrying out its duties under this Regulation, the Authority finds that there are serious indications of the possible existence of facts liable to constitute one or more of the breaches listed in Annex II, the Authority shall appoint an independent investigatory team within the Authority to investigate the matter. The investigatory team shallmembers of the independent investigatory team shall be appointed by the Executive Board choosing them from among a public list of experts that offer every requisite guarantee of independence and competence. The members of the independent investigatory team shall have the necessary qualifications, expert knowledge and professional experience, not be involved or have been involved in the direct supervision of the selected obliged entity concerned and shall perform their functions independently from the Authority’s Executive Board.
Amendment 714 #
Proposal for a regulation
Article 25 – paragraph 5
Article 25 – paragraph 5
5. On the basis of the file containing the investigatory team’s findings and, when requested by the persons concerned, after having heard the persons subject to investigation in accordance with Article X23, the Executive Board shall decide if one or more of the breaches listed in Annex II have been committed by the persons who have been subject to investigation, and in such case, shall take a supervisory measure in accordance with Article 20 and impose an administrative pecuniary sanction in accordance with Article 21.
Amendment 724 #
Proposal for a regulation
Article 28 – paragraph 1
Article 28 – paragraph 1
1. The Authority shall perform periodic assessments of some or all of the activities of one, several, or all financial supervisors, including the assessment of their tools and resources to ensure high level supervisory standards and practices. The assessments shall include a review of the application of the AML/CFT supervisory methodology developed pursuant to Article 8 and shall cover all financial supervisors in a single assessment cycle. The length of each assessment cycle shall be determined by the Authority and shall not exceed seven years. At the end of each assessment cycle, the Authority shall present its findings to the European Parliament and the Council.
Amendment 730 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. The assessments shall be carried out by the staff of the Authority with voluntary involvement of the staff of financial supervisors that are not subject to review, upon agreement on such involvement by the Executive Board. The assessments shall take due account of all the relevant evaluations, assessments or reports drawn up by international organisations and intergovernmental bodies with competence in the field of preventing money laundering and terrorist financing.
Amendment 733 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The Authority shall produce a report setting out the results of each assessment. That report shall be prepared by the staff of the Authority, or by the staff of the Authority jointly with the staff of the financial supervisors where the staff of financial supervisors were involved in the review on an ad-hoc basis. The report shall be adopted by the Executive Board, taking into account the observations of the General Board in supervisory composition. The report shall be sent to the Council and the European Parliament. The report shall explain and indicate any specific follow-up measures required to be taken by the financial supervisor or financial supervisors subject to the assessment that are deemed appropriate, proportionate and necessary as a result of the assessment. The follow-up measures may be adopted in the form of guidelines and recommendations pursuant to Article 43 including recommendations addressed to all or several financial supervisors or to any specific financial supervisor, as appropriate.
Amendment 735 #
Proposal for a regulation
Article 28 – paragraph 3 a (new)
Article 28 – paragraph 3 a (new)
3a. Where the assessment concludes that the supervisor faces severe difficulties to perform its tasks adequately, the Authority may provide assistance, including training to the supervisor concerned.
Amendment 736 #
Proposal for a regulation
Article 28 – paragraph 4
Article 28 – paragraph 4
4. Financial supervisorSupervisory authorities shall make every effort to comply with the specific follow-up measures addressed to them as a result of the assessment. In case the supervisory authority does not adopt the recommended follow-up measures, the Authority may make its recommendation public. Where the absence of follow-up measures leads to a significant deterioration of the compliance with AML/CFT measures which could significantly harm the reputation of the Member State or the EU, the Authority may exercise the powers conferred by article 30 for one or more obliged entities of that Member States. In case of repeated failure to apply the follow-up measures, the General Board of the Authority may decide to suspend the voting right of the supervisory authority concerned.
Amendment 741 #
Proposal for a regulation
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
1. The Authority shall ensure, within the scope of its powers and without prejudice to the powers of the relevant financial supervisors pursuant to Article 36 [OP please insert the next number to the AMLD, COM(2021)423], that AML supervisory colleges are established and functioning consistently for selected and non-selected obliged entities operating in several Member States in accordance with Article 36 [OP please insert the next number to the AMLD, COM(2021)423]. To that end, the Authority may:
Amendment 753 #
Proposal for a regulation
Article 29 a (new)
Article 29 a (new)
Amendment 756 #
Proposal for a regulation
Article 30 – title
Article 30 – title
Amendment 759 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. Financial sSupervisors shall notify the Authority where the situation of any non- selected obliged entity with regard to its compliance with applicable requirements andor its exposure to money laundering and terrorism financing risks deteriorates rapidly andor significantly, especially where such deterioration could lead to significant harm to the reputation of the Member State where that entity operates, several Member States or of the Union as a whole.
Amendment 763 #
Proposal for a regulation
Article 30 – paragraph 2 – introductory part
Article 30 – paragraph 2 – introductory part
2. The Authority may, where it has indications of material breaches by a non- selected obliged entity, request its financial supervisor to:
Amendment 764 #
Proposal for a regulation
Article 30 – paragraph 2 – subparagraph 1
Article 30 – paragraph 2 – subparagraph 1
Where necessary, the Authority may also request a financial supervisor to adopt an individual decision addressed to that entity requiring it to undertake all necessary actions to comply with its obligations under directly applicable Union law or under national law, to the extent that it transposes Directives or exercises options granted to Member States by Union law, including the cessation of any practice.
Amendment 765 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The financial supervisor concerned shall comply with any request addressed to it in accordance with paragraph 2 and shall inform the Authority, as soon as possible and within ten working days from the day of the notification of such request at the latest, of the steps it has taken or intends to take to comply with that request.
Amendment 768 #
Proposal for a regulation
Article 30 – paragraph 4
Article 30 – paragraph 4
4. Where the financial supervisor concerned does not comply with the request referred to in paragraph 2 andor does not inform the Authority of the steps it has taken or intends to take to comply with the request within ten days from the day of the notification of the request, the Authority mayor upon the request of the Commission to grant psupervisor, the Authority may exermcission to transfere directly itself all the relevant tasks and powers referred to in Article 5(2) and Article 6(1) related to direct supervision of the non-selected obliged entity from the financial supervisor concerned to the Authority.
Amendment 773 #
Proposal for a regulation
Article 30 – paragraph 5 – introductory part
Article 30 – paragraph 5 – introductory part
5. The request from the AuthorityAuthority shall notify the Commission and the European Parliament. The notification shall contain:
Amendment 776 #
Proposal for a regulation
Article 30 – paragraph 5 – point b
Article 30 – paragraph 5 – point b
(b) a justification why the request to the financial supervisor referred to in paragraph 2 did not result in any action taken within the time-limit set in paragraph 3;
Amendment 777 #
Proposal for a regulation
Article 30 – paragraph 5 – point c
Article 30 – paragraph 5 – point c
(c) a time limit, which shall not exceed three years, for the requested transfer of the relevant tasks and powers;
Amendment 784 #
Proposal for a regulation
Article 30 – paragraph 6
Article 30 – paragraph 6
Amendment 791 #
Proposal for a regulation
Article 30 – paragraph 7
Article 30 – paragraph 7
7. On the tenth working day after the notification of the decision authorising the transfer of tasks and powers in relation to the non-selected obliged entity, the non- selected obliged entity referred to in paragraph 2 shall be deemed a selected obliged entity for the purposes of the exercise of the tasks referred to in Article 5(2) and the powers referred to in Article 6(1) and Articles 16 to 22. The Commission decisionAuthority shall set a time-limit for the exercise of these tasks and powers, which shall not exceed three years and upon the expiry of which they tasks and powers shall be automatically transferred back to the financial supervisor concerned.
Amendment 804 #
Proposal for a regulation
Article 31 – paragraph 3 – point b a (new)
Article 31 – paragraph 3 – point b a (new)
(ba) the effectiveness of the monitoring of the ML/FT risks and vulnerabilities stemming from the sector of the supervisor concerned
Amendment 808 #
Proposal for a regulation
Article 31 – paragraph 4
Article 31 – paragraph 4
4. The Authority shall produce a report setting out the results of the peer review. That peer review report shall be prepared by the peer review committee and adopted by the Executive Board, having received the observations of the General Board in supervisory composition as to the consistency of application of the methodology with other peer review reports. The report shall explain and indicate the follow-up measures that are deemed appropriate, proportionate and necessary as a result of the peer review. Those follow-up measures may be adopted in the form of guidelines and recommendations pursuant to Article 43 and opinions pursuant to Article 44. The non- financial supervisors shall make every effort to comply with any guidelines and recommendations issued, in accordance with Article 43.
Amendment 811 #
Proposal for a regulation
Article 31 – paragraph 6 a (new)
Article 31 – paragraph 6 a (new)
6a. Where the reviewed non-financial supervisor has not taken adequate measure to address any material deficiencies in the application of the EU law, the Authority shall take measures to ensure that ML/FT risks are properly addressed. These measures could include mandatory training for the supervisor concerned, the delegation of some Authority staff to oversee the supervisor’s activities or the exercise of the supervisory powers referred to in article 30 for the entities that do not comply with EU law.
Amendment 817 #
Proposal for a regulation
Article 31 a (new)
Article 31 a (new)
Amendment 825 #
Proposal for a regulation
Article 32 – paragraph 5
Article 32 – paragraph 5
5. The supervisory authority in the non-financial sector shall, within ten working days of receipt of the formal opinion referred to in paragraph 54, inform the Commission and the Authority of the steps it has taken or intends to take to comply with that formal opinion.
Amendment 837 #
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
1. Where, pursuant to Article 25 of [OP please insert the next number to the AMLD, COM(2021)423], a FIU of a Member State identifies a potential need to conduct a joint analysis with one or several FIUs in other Member States, it shall notify the Authority thereof. Within 10 working days, the Authority shall assess the merits of such joint-analysis, in light of the priorities identified in the supervisory plan and of the available resources. The Authority shall inform the FIUs in all the relevant Member States and invite them to take part in the joint analysis within five days of the initial notificationassessment. To this end, the Authority shall use secured channels of communication. The FIUs in all the relevant Member States shall consider taking part in the joint analysis. The Authority shall ensure that the joint analysis is launched within 20 days of the initial notificationassessment.
Amendment 841 #
Proposal for a regulation
Article 33 – paragraph 1 a (new)
Article 33 – paragraph 1 a (new)
1a. Where the Authority identifies the need for a joint-analysis, it shall, on its own initiative, request FIUs to participate in the conduct of the joint analysis. The Authority shall be responsible for the establishment and the composition of joint analysis team, for the coordination of the conduct of joint analysis and shall be empowered to settle potential disagreements between participating FIUs.
Amendment 842 #
Proposal for a regulation
Article 33 – paragraph 2
Article 33 – paragraph 2
2. Any FIU that declines to participate in the conduct of the joint analysis shall provide the reasons thereof in writing to the Authority, within five days of the receipt of the invitation. TWhere the joint analysis has been launched upon the initiative of a FIU, the Authority shall provide such explanation without delay to the FIU having identified the need for a joint analysis.
Amendment 845 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
3. Upon explicit consent of the FIUs participating in the joint analysis, tThe staff of the Authority supporting the joint analysis shall be granted access to all the data pertaining to the subject-matter of the joint analysis and shall be able to process those data.
Amendment 850 #
Proposal for a regulation
Article 33 a (new)
Article 33 a (new)
Article 33a Planning of joint analysis 1. The General Board in FIU composition shall adopt every three years a supervisory plan which identifies the main risks, vulnerabilities and areas for which joint analysis may be necessary. 2. The Authority shall develop guidelines to define the main criteria to identify the need for a joint analysis.
Amendment 858 #
Proposal for a regulation
Article 35 – paragraph 6
Article 35 – paragraph 6
6. The Executive Board shall determine the rights and obligations of the FIU delegates in relation to the Authority. FIU delegates shall be subject to the same confidential requirements as the staff of the Authority.
Amendment 861 #
Proposal for a regulation
Article 37 – paragraph 1
Article 37 – paragraph 1
1. The Authority shall ensure adequate and uninterrupted hosting, management, maintenance, and development of the FIU.net. The Authority shall, in cooperation with the Member States, ensure that the most advanced available technology is used for the FIU.net, subject to a cost-benefit analysis and to data protection and fundamental rights impact assessments. The Authority shall ensure that the most advanced available technology used, including IT and artificial intelligence services and tools, is human-centred and guided by the principles of transparency, explainability, accountability and responsibility.
Amendment 864 #
Proposal for a regulation
Article 37 – paragraph 2
Article 37 – paragraph 2
2. The Authority shall ensure uninterrupted functioning of the FIU.net and keep it and up to date. Where necessary to support or strengthen the exchange of information and cooperation between the FIUs and based on the needs of FIUs, the Authority shall after consulting the EDPS, design and implement, or otherwise make available, upgraded or additional functionalities of FIU.net.
Amendment 865 #
Proposal for a regulation
Article 37 – paragraph 3 – point a
Article 37 – paragraph 3 – point a
(a) ensure the required level of security of the system, including the implementation of the appropriate technical and organizational measures to address and mitigate data protection risks;
Amendment 866 #
Proposal for a regulation
Article 37 – paragraph 4
Article 37 – paragraph 4
4. For the purposes of carrying out the tasks referred to in paragraphs 1, 2 and 3, the Authority shall be empowered to conclude or enter into legally binding contracts or agreements with third party service providers. The EDPS and the Parliament shall be informed before the conclusion of these contracts.
Amendment 870 #
Proposal for a regulation
Article 37 a (new)
Article 37 a (new)
Amendment 873 #
Proposal for a regulation
Article 37 b (new)
Article 37 b (new)
Article 37b Coordination and mediation role 1. The Authority shall promote common approaches, methods and cooperation amongst FIUs. To that end, the Authority may issue guidelines, recommendations pursuant article 43 or opinions pursuant article 44, or develop practical instrument or convergent tools. 2. In case of disagreement between FIUs on matters concerning cooperation or other relevant operational aspects, the FIUs concerned shall inform the Authority. The Authority shall act as a mediator between FIUs.
Amendment 874 #
Proposal for a regulation
Article 37 c (new)
Article 37 c (new)
Article 37c Responses to requests for information 1. The Authority shall respond in a timely manner to reasoned requests for information by competent authorities when such requests for information are motivated by concerns relating to money laundering, its predicate offences or terrorist financing or when this information is necessary for the competent authority to perform its tasks under [AMLD6]. If the information has been initially obtained from another competent authority, the Authority shall obtain the agreement of this competent authority before sharing the information. The Authority remains responsible and accountable for the decision to disseminate the information. Where a request for information would contain personal data, the Authority shall ensure compliance with Regulation (EU) 1725/2018. 2. Competent authorities shall provide feedback to the Authority about the use made of the information provided in accordance with this Article. Such feedback shall be provided as soon as possible and in any case, at least on an annual basis, in such a way as to inform the Authority about the actions taken by the competent authorities on the basis of the information provided by the Authority.
Amendment 877 #
Proposal for a regulation
Article 38 – paragraph 1 – subparagraph 2 a (new)
Article 38 – paragraph 1 – subparagraph 2 a (new)
Where the Authority submits a draft regulatory technical standard, the Commission shall immediately forward it to the European Parliament and the Council.
Amendment 878 #
Proposal for a regulation
Article 38 – paragraph 1 – subparagraph 3
Article 38 – paragraph 1 – subparagraph 3
Within three months of receipt of a draft regulatory technical standard, the Commission shall decide whether to adoptendorse it. The Commission shall inform the European Parliament and the Council in due time where the adoption cannot take place within the three-month period. The Commission may adopt the draft regulatory technical standard in part only, or with amendments, where the Union’s interests so require.
Amendment 879 #
Proposal for a regulation
Article 39 a (new)
Article 39 a (new)
Article 39a Revocation of the delegation 1. The delegation of power referred to in Article 38 may be revoked at any time by the European Parliament or by the Council. 2. The institution which has commenced an internal procedure for deciding whether to revoke a delegation of power shall endeavour to inform the other institution and the Commission within a reasonable time before the final decision is taken, indicating the delegated power which could be subject to revocation. 3. The decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect immediately or at a later date specified therein. It shall not affect the validity of the regulatory technical standards already in force. It shall be published in the Official Journal of the European Union.
Amendment 880 #
Proposal for a regulation
Article 40 – paragraph 2 – subparagraph 1
Article 40 – paragraph 2 – subparagraph 1
The regulatory technical standard may be published in the Official Journal of the European Union and enter into force before the expiry of thate period referred to in paragraph 1 if the European Parliament and the Council have both informed the Commission of their intention not to raise objections.
Amendment 881 #
Proposal for a regulation
Article 41 – paragraph 1
Article 41 – paragraph 1
1. In the event that the Commission does not endorse a draft regulatory technical standard or amends it as provided for in Article 358, the Commission shall inform the Authority, the European Parliament and the Council, stating its reasons.
Amendment 883 #
Proposal for a regulation
Article 42 – paragraph 1 – subparagraph 1 a (new)
Article 42 – paragraph 1 – subparagraph 1 a (new)
Where the Authority submits a draft implementing technical standard, the Commission shall immediately forward it to the European Parliament and the Council
Amendment 886 #
Proposal for a regulation
Article 43 – paragraph 2
Article 43 – paragraph 2
2. The Authority shall, where appropriate, conduct open public consultations regarding the guidelines and recommendations which it issues and analyse the related potential costs and benefits of issuing such guidelines and recommendations. Those consultations and analyses shall be proportionate in relation to the scope, nature and impact of the guidelines or recommendations. Where the Authority does not conduct open public consultations, the Authority shall provide its reasons and make them public.
Amendment 889 #
Proposal for a regulation
Article 43 – paragraph 3 – introductory part
Article 43 – paragraph 3 – introductory part
3. The supervisory authorities and, obliged entities and FIUs shall make every effort to comply with those guidelines and recommendations.
Amendment 892 #
Proposal for a regulation
Article 43 – paragraph 3 – subparagraph 2
Article 43 – paragraph 3 – subparagraph 2
The Authority shall publish the fact that a supervisory authority does not comply or does not intend to comply with that guideline or recommendation. The Authority may also decide, on a case-by- case basis, to publish and the reasons provided by the supervisory authority for not complying with that guideline or recommendation. The supervisory authority shall receive advanced notice of such publication.
Amendment 893 #
Proposal for a regulation
Article 43 – paragraph 3 a (new)
Article 43 – paragraph 3 a (new)
3a. In the report referred to in Article 53(4)(c) the Authority shall inform the European Parliament, the Council and the Commission of the guidelines and recommendations that have been issued, stating which supervisory authority and obliged entity has not complied with them, and outlining how the Authority intends to ensure that the supervisory authority or obliged entity concerned follow its recommendations and guidelines in the future.
Amendment 896 #
Proposal for a regulation
Article 45 – paragraph 1 – point 4 a (new)
Article 45 – paragraph 1 – point 4 a (new)
(4a) a Civil Society Advisory Body, which shall exercise the tasks set out in Article -60
Amendment 897 #
Proposal for a regulation
Article 45 – paragraph 1 – point 5 a (new)
Article 45 – paragraph 1 – point 5 a (new)
(5a) a FIUs Coordination Committee as provided in Article 47a
Amendment 901 #
Proposal for a regulation
Article 46 – paragraph 2 – point c a (new)
Article 46 – paragraph 2 – point c a (new)
(ca) one representative of the Civil Society Advisory Body, without the right to vote;
Amendment 905 #
Proposal for a regulation
Article 46 – paragraph 2 – point c b (new)
Article 46 – paragraph 2 – point c b (new)
(cb) the Vice-Chair of the Authority, without the right to vote unless he or she is replacing the Chair
Amendment 906 #
Proposal for a regulation
Article 46 – paragraph 2 – subparagraph 1
Article 46 – paragraph 2 – subparagraph 1
The heads of the supervisory authorities referred to in the first subparagraph, point (b) in each Member State shall share a single vote and shall agree onppoint a single common representative for each meeting and voting procedure. That common representative shall be the ad-hoc voting member for the purposes of that meeting or voting procedure. The public authorities in a Member State may also agree onppoint a single permanent common representative who shall be a permanent voting member. Where items to be discussed by the General Board in supervisory composition concern the competence of several public authorities, the ad-hoc or permanent voting member may be accompanied by a representative from up to two other public authorities, who shall be non-voting. In their appointments to the General Board, the public authorities of Member States shall ensure gender balance, in particular with regard to the composition of the Board as a body.
Amendment 909 #
Proposal for a regulation
Article 46 – paragraph 3 – point c a (new)
Article 46 – paragraph 3 – point c a (new)
(ca) the Vice-Chair of the Authority, without the right to vote unless he or she is replacing the Chair;
Amendment 913 #
Proposal for a regulation
Article 46 – paragraph 3 – point c b (new)
Article 46 – paragraph 3 – point c b (new)
(cb) the Chair of the FIUs Coordination Committee, without the right to vote.
Amendment 919 #
Proposal for a regulation
Article 47 a (new)
Article 47 a (new)
Amendment 922 #
Proposal for a regulation
Article 50 – paragraph 1
Article 50 – paragraph 1
1. Decisions of the General Board shall be taken by a simple majority of its members. Each voting member as determined by Article 476(2) shall have one vote. In case of a tied vote, the Chair of the Authority shall have a casting vote.
Amendment 923 #
Proposal for a regulation
Article 51 a (new)
Article 51 a (new)
Article 51a Transparency of decisions adopted by the General Board Within six weeks of each meeting of the General Board, the Authority shall, at least provide the European Parliament with a comprehensive and meaningful record of the proceedings of that meeting that enables a full understanding of the discussions, including an annotated list of decisions. Such record shall not reflect discussions within the General Board relating to individual entities, unless otherwise provided for in the legislative acts referred to in Article 1(2).
Amendment 925 #
Proposal for a regulation
Article 52 – paragraph 1 – point c a (new)
Article 52 – paragraph 1 – point c a (new)
(ca) the Executive Director;
Amendment 926 #
Proposal for a regulation
Article 52 – paragraph 1 – point c b (new)
Article 52 – paragraph 1 – point c b (new)
(cb) the Vice-Chair of the Authority.
Amendment 927 #
Proposal for a regulation
Article 52 – paragraph 2
Article 52 – paragraph 2
2. The Executive Director and the Vice-Chair of the Authority shall participate in meetings of the Executive Board without the right to vote.
Amendment 929 #
Proposal for a regulation
Article 52 – paragraph 3
Article 52 – paragraph 3
3. The five members of the Executive Board referred to in paragraph 1, point (b), shall be selected following an open selection procedure which shall be published in the Official Journal of the European Union. They shall be appointed by the General Board based on the shortlist drawn by the Commission. The selection shall respect the principles of experience, qualification, and, to the extent possible, gender and geographical balance.
Amendment 934 #
Proposal for a regulation
Article 52 – paragraph 7 – introductory part
Article 52 – paragraph 7 – introductory part
7. During a period of onthree years after ceasing to hold office, the former members of the Executive Board, including the Chair and the Vice-Chair of the Authority, are prohibited from engaging in a gainful occupational activity with
Amendment 942 #
Proposal for a regulation
Article 53 – paragraph 5
Article 53 – paragraph 5
5. The Executive Board shall select a Vice-Chair of the Authority among its voting members. The Vice-ChairVice-Chair of the Authority shall automatically replace the Chair, if the latter is prevented from attending to his/her duties.
Amendment 943 #
Proposal for a regulation
Article 55 – paragraph 1
Article 55 – paragraph 1
1. The Executive Board shall take decisions by simple majority of its members. Each member of the Executive Board in accordance with Article 52(1) points (a) to (c) shall have one vote. The Chair of the Authority, or the Vice-Chair when replacing the Chair, shall have a casting vote in case of a tie.
Amendment 944 #
Proposal for a regulation
Article 55 – paragraph 2
Article 55 – paragraph 2
2. A representative of the Commission shall have a right to vote whenever matters pertaining to Article 53(4) points (a) to (l) are discussed and decided upon. For the purposes of taking the decisions referred to in Article 53(4), points (f) and (g), the representative of the Commission shall have one vote. The decisions referred to in Article 53(4), points (b) to (e) and (h) to (l) may only be taken if the representative of the Commission casts a positive vote. For the purposes of taking the decisions referred to in Article 53(4), point (a), the consent of the representative of the Commission shall only be required on the elements of the decision not related to the annual and multi-annual working programme of the Authority.
Amendment 948 #
Proposal for a regulation
Article 56 – title
Article 56 – title
Appointment of the Chair and of the Vice- Chair of the Authority
Amendment 949 #
Proposal for a regulation
Article 56 – paragraph 1
Article 56 – paragraph 1
1. The Chair and the Vice-Chair of the Authority shall be selected on the basis of merit, skills, knowledge, recognised standing and experience in the area of anti- money laundering and countering the financing of terrorism and other relevant qualification, following an open selection procedure which shall respect the principle of gender balance and shall be published in the Official Journal of the European Union. The Commission shall draw up a gender-balanced shortlist of twofour qualified candidates for the position of the Chair and Vice-Chair of the Authority. The Council, after approval by the European Parliament, shall adopt an implementing decision to appoint the Chair of the AuthorityBefore the approval, the candidates shall be heard by the competent committee(s) of the European Parliament. After conducting hearings, the European Parliament shall select one of those candidates for each position. The Council, after approval by the European Parliament, shall adopt an implementing decision to appoint the Chair and the Vice-Chair of the Authority. Where the European Parliament is of the opinion that none of the shortlisted candidates sufficiently fulfils the qualifications set out in the first subparagraph, the open selection procedure shall recommence.
Amendment 956 #
Proposal for a regulation
Article 56 – paragraph 1 a (new)
Article 56 – paragraph 1 a (new)
1a. The Vice-Chair shall automatically replace the Chair, if the latter is prevented from attending to his or her duties.
Amendment 958 #
Proposal for a regulation
Article 56 – paragraph 2
Article 56 – paragraph 2
2. If the Chair or Vice-Chair of the Authority no longer fulfils the conditions required for the performance of his or her duties or has been guilty of serious misconduct, the Council may, after approval of the European Parliament and following a proposal by the General Board in either composition, adopt an implementing decision to remove the Chair or Vice-Chair of the Authority from office. The Council shall act by qualified majority.
Amendment 960 #
Proposal for a regulation
Article 56 – paragraph 2 a (new)
Article 56 – paragraph 2 a (new)
2a. The Chair and Vice-Chair shall be accountable to the European Parliament and the Council
Amendment 961 #
Proposal for a regulation
Article 58 – paragraph 2
Article 58 – paragraph 2
2. The Executive Director shall perform his or her duties in the interests of the Union, and independently of any specific interests.
Amendment 962 #
Proposal for a regulation
Article 58 – paragraph 4
Article 58 – paragraph 4
4. The Executive Director shall be selected on the grounds of merit and documented high-level administrative, budgetary and management skills, following an open selection procedure which shall respect the principle of gender balance and shall be published in the Official Journal of the European Union, and, as appropriate, other press or internet sites. The Commission shall draw up a gender-balanced shortlist of two qualified candidates for the position of the Executive Director. TAfter the approval by the European Parliament, the Executive Board shall appoint the Executive Director. Where the European Parliament is of the opinion that none of the shortlisted candidates sufficiently fulfils the qualifications set out in the first subparagraph, the open selection procedure shall recommence.
Amendment 970 #
Proposal for a regulation
Article 58 – paragraph 5 – subparagraph 1
Article 58 – paragraph 5 – subparagraph 1
The Executive Director may be removed from office by the Executive Board on proposal by the European Parliament or the Commission.
Amendment 973 #
Proposal for a regulation
Article 59 a (new)
Article 59 a (new)
Article 59a Civil Society Advisory Body 1. The Authority shall establish a Civil Society Advisory Body for the purpose of advising it when exercising its powers listed in Article 38, 42 and 43. 2. The General Board shall determine the composition of the Civil Society Advisory Body upon the recommendation of the Commission and after consultation of the European Parliament. The internal working methods of the Advisory Body shall be established by the body itself. 3. The Civil Society Advisory Body shall be consulted regularly, and in any case whenever the Authority or the Commission is required to conduct public consultations in particular with regard to the adoption of regulatory technical standards under Article 38(1) and (3), implementing technical standards under Article 42(1) and (3) and guidelines and recommendations under Article 43(2), unless such consultation is disproportionate in relation to the particular urgency of the matter. If such consultation is not conducted, the Authority or the Commission respectively shall clearly justify such decision. 4. When carrying out the tasks conferred upon them by this Regulation, the members of the Civil Society Advisory Body shall act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions from Union institutions, bodies, offices nor agencies from any government or any other public or private body. 5. The Civil Society Advisory body shall be provided with sufficient resources and expertise to assess the exercise of the powers of the Authority under this Regulation. 6. The General Board shall lay down the practical arrangements for the prevention and the management of conflict of interest of the members of the Civil Society Advisory Body.
Amendment 988 #
Proposal for a regulation
Article 65 – paragraph 1
Article 65 – paragraph 1
1. The Authority shall levy an annual supervisory fee on all selected obliged entities referred to in Article 13 and on the non-selected obliged entities that meet the criteria of Article 12(1) and 12a and do not meet the criteria in Article 13(1) by one Member State. The fees shall cover expenditure incurred by the Authority in relation to the tasks related to supervision and referred to in Sections 3 and 4 of Chapter II. Those fees shall not exceed the expenditure relating to these tasks. Where these criteria are not fully respected in any given year, the necessary adjustments shall be made when calculating the fees for the two following years.
Amendment 989 #
Proposal for a regulation
Article 65 – paragraph 1 a (new)
Article 65 – paragraph 1 a (new)
1a. The fees to be levied shall be calculated in such a way as to ensure sufficient and stable revenue for the Authority.
Amendment 993 #
Proposal for a regulation
Article 65 – paragraph 4
Article 65 – paragraph 4
4. The basis for calculating the annual supervisory fee for a given calendar year shall be the expenditure relating to the direct and indirect supervision of the selected and non-selected obliged entities subject to fees in that year. The Authority may require advance payments in respect of the annual supervisory fee, which shall be based on a reasonable estimate. The Authority shall communicate with the relevant financial supervisor before deciding on the final fee level so as to ensure that supervision remains cost- effective and reasonable for all financial sector obliged entities. The Authority shall communicate to respective financial sector obliged entities the basis for the calculation of the annual supervisory fee. Member States shall ensure that the obligation to pay the fees specified in this Article is enforceable under national law, and that due fees are fully paid.
Amendment 994 #
Proposal for a regulation
Article 65 – paragraph 5
Article 65 – paragraph 5
5. This Article is without prejudice to the right of financial supervisors to levy fees in accordance with national law, to the extent supervisory tasks have not been conferred on the Authority, or in respect of costs of cooperating with and assisting the Authority and acting on its instructions, in accordance with relevant Union law.
Amendment 999 #
Proposal for a regulation
Article 71 – paragraph 2
Article 71 – paragraph 2
2. The agencAuthority shall ensure that at least 10% of its IT expenditure is transparently allocated to direct IT security. The contribution to the Computer Emergency Response Team of the European Institutions, Bodies and Agencies (CERT-EU) may be counted in this minimum expenditure requirement.
Amendment 1002 #
Proposal for a regulation
Article 72 – paragraph 2
Article 72 – paragraph 2
2. The Authority shall submit and publish on an annual basis to the European Parliament, to the Council, and to the Commission a report on the execution of the tasks conferred on it by this Regulation, including information on the planned evolution of the structure and amount of the supervisory fees referred to in Article 66. The Chair of the Authority shall present that report in public to the European Parliament.
Amendment 1004 #
Proposal for a regulation
Article 72 – paragraph 3
Article 72 – paragraph 3
3. At the request of the European Parliament, the Chair of the Authority shall participate in a hearing on the execution of its tasks by the competent committees of the European Parliament. A hearing shall take place at least annually.
Amendment 1012 #
Proposal for a regulation
Article 73 – paragraph 5 a (new)
Article 73 – paragraph 5 a (new)
5a. Within a period of three years after ceasing their functions, staff members of the Authority are prohibited to work for and in relation with any of the obliged entities for which they have participated in supervisory activities.
Amendment 1015 #
Proposal for a regulation
Article 77 – title
Article 77 – title
Cooperation with European Supervisory Authorities, the European Data Protection Board and the European Data Protection BoardSupervisor
Amendment 1017 #
Proposal for a regulation
Article 77 – paragraph 1
Article 77 – paragraph 1
1. The Authority shall establish and maintain a close cooperation with the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority. Where relevant, the cooperation shall include collaboration in developing draft technical standards, guidelines or recommendations.
Amendment 1022 #
Proposal for a regulation
Article 77 – paragraph 2
Article 77 – paragraph 2
2. When drafting guidelines and recommendations in accordance with Article 43, having a significant impact on the protection of personal data, the Authority shall closely cooperate with the European Data Protection Board established by Regulation (EU) 2016/679 and the European Data protection Supervisor established by Regulation (EU) 1728/2018 to avoid duplication, inconsistencies and legal uncertainty in the sphere of data protection.
Amendment 1026 #
Proposal for a regulation
Article 78 – paragraph 1
Article 78 – paragraph 1
1. Where necessary for the fulfilment of its tasks listed in Article 5ithin the boundaries of its mandate set out in this regulation, the Authority shall cooperate, as appropriate, with the non- AML/CFT authorities.
Amendment 1030 #
Proposal for a regulation
Article 78 – paragraph 3
Article 78 – paragraph 3
3. The Authority shall ensure effective cooperation and information exchange between all financial supervisors in the AML/CFT supervisory system, FIUs and the relevant non-AML/CFT authorities referred to in paragraph 1, including with regard to access to any information and data in central AML/CFT database referred to in Article 11.
Amendment 1037 #
Proposal for a regulation
Article 81 – paragraph 1
Article 81 – paragraph 1
1. In order to achieve the objectives set out in this Regulation, and without prejudice to the respective competences of the Member States and the Union institutions, the Authority may develop contacts and enter into administrative arrangements with AML/CFT authorities in third countries that have regulatory, supervisory and FIU-related competences in the field of anti-money laundering and counter terrorism financing as well as with international organisations and third- country administrations. Those arrangements shall not create legal obligations in respect of the Union and its Member States nor shall they prevent Member States and their competent authorities from concluding bilateral arrangements with those third countries. These contacts and administrative arrangements shall be made public.
Amendment 1042 #
Proposal for a regulation
Article 81 a (new)
Article 81 a (new)
Amendment 1043 #
Proposal for a regulation
Article 81 b (new)
Article 81 b (new)
Amendment 1046 #
Proposal for a regulation
Article 84 – paragraph 1 – subparagraph 1
Article 84 – paragraph 1 – subparagraph 1
When drafting guidelines and recommendations in accordance with Article 43carrying out its activities under this regulation, having a significant impact on the protection of personal data, the Authority shall, after being authorized by the Commission, consult the European Data Protection Supervisor established by Regulation (EU) 2018/1725. The Authority may also invite national data protection authorities as observers in the process of drafting such guidelines and recommendations, in accordance with Article 43.
Amendment 1047 #
Proposal for a regulation
Article 84 – paragraph 2
Article 84 – paragraph 2
Amendment 1049 #
Proposal for a regulation
Article 86 – paragraph 2
Article 86 – paragraph 2
2. The power to adopt delegated acts referred to in Article 25, Article 30, Article 65, Article 81a and Article 6581b shall be conferred on the Commission for an indeterminate period of time from [OP please insert the date = 6 months after the date of entry into force of this Regulation].
Amendment 1050 #
Proposal for a regulation
Article 86 – paragraph 3
Article 86 – paragraph 3
3. The power to adopt delegated acts referred to in Article 25, Article 30, Article 65, Article 81a and Article 6581b may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 1051 #
Proposal for a regulation
Article 86 – paragraph 6
Article 86 – paragraph 6
6. A delegated act adopted pursuant to Article 25, Article 30, Article 65, Article 81a and Article 6581b shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.
Amendment 1053 #
Proposal for a regulation
Article 87 – paragraph 1
Article 87 – paragraph 1
1. The necessary arrangements concerning the accommodation to be provided for the Authority in the Member State where its seat is located and the facilities to be made available by that Member State, as well as the specific rules applicable in that Member State to the staff of the Authority and members of their families, shall be laid down in a Headquarters Agreement to be concluded between the Authority and that Member State which they conclude after obtaining the approval of the Executive Boardby the date this regulation enters into force in accordance with Article 93.
Amendment 1056 #
Proposal for a regulation
Article 88 – paragraph 1 – introductory part
Article 88 – paragraph 1 – introductory part
Amendment 1058 #
Proposal for a regulation
Article 88 – paragraph 1 – point b – point i a (new)
Article 88 – paragraph 1 – point b – point i a (new)
(ia) the criteria to select obliged entities that are directly supervised by the Authority;
Amendment 1059 #
Proposal for a regulation
Article 88 – paragraph 1 – point c
Article 88 – paragraph 1 – point c
(c) the impact of the activities and technologies related to support and coordination of FIUs, and in particular the coordination of the joint analyses of cross- border activities and transactions conducted by FIUs;
Amendment 1064 #
Proposal for a regulation
Article 88 – paragraph 2 – point d a (new)
Article 88 – paragraph 2 – point d a (new)
(da) it is appropriate to establish an EU FIU.
Amendment 1065 #
Proposal for a regulation
Article 88 – paragraph 3
Article 88 – paragraph 3
Amendment 1067 #
Proposal for a regulation
Article 91 a (new)
Article 91 a (new)