94 Amendments of Isabel BENJUMEA BENJUMEA related to 2021/0240(COD)
Amendment 202 #
Proposal for a regulation
Recital 2
Recital 2
(2) Cross-border nature of crime and criminal proceeds endanger Union financial system efforts relating to prevention of money laundering and financing of terrorism. Those efforts have to be tackled at Union level through the creation of an Authority responsible for contributing to the implementation of harmonised rules. In addition, the Authority should pursue a harmonised approach to strengthen the Union’s existing AML/CFT preventive framework, and specifically AML supervision and cooperation between FIUs. That approach should reduce divergences in national legislation and supervisory practices and introduce structures that benefit the smooth functioning of the internal market in a determined manner, strengthen the financial system at EU level with a view to tackling the Money Laundering/Terrorist Financing (ML/TF) risk originating from third countries and should, consequently, be based on Article 114 TFEU.
Amendment 205 #
Proposal for a regulation
Recital 3
Recital 3
(3) Therefore, a European Authority for anti-money laundering and countering the financing of terrorism, the Anti-Money Laundering Authority (‘the Authority’) should be established. The creation of this new Authority is crucial to ensure efficient and adequate supervision of obliged entities thaving high inherentt pose a high risk, particularly with regard to Money Laundering/Terrorist Financing (ML/TF) risk, strengthening common supervisory approaches for non-selected obliged entities and facilitating joint analyses and cooperation between Financial Investigation Units (FIUs).
Amendment 209 #
Proposal for a regulation
Recital 4
Recital 4
(4) This new instrument is part of a comprehensive package aiming at strengthening the Union’s AML/CFT framework. Together, this instrument, Directive [please insert reference – proposal for 6th Anti-Money Laundering Directive], Regulation [please insert reference – proposal for a recast of Regulation (EU) 2015/847] and Regulation [please insert reference – proposal for the Anti-Money Laundering Regulation] will form the legal framework governing the AML/CFT requirements to be met by obliged entities and underpinning the Union’san EU AML/CFT institutional framework that has been strengthened with a view to tackling internal risks and risks concerning third countries.
Amendment 212 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) While some self-regulated professions in the non-financial sector could be considered to be engaged in an activity with a money laundering risk, the inclusion of that sector under the direct supervision of the Authority should adhere to the principle of proportionality and should not undermine or interfere with the principle of professional independence. Including this sector under direct supervision would be a disproportionate encroachment on the constitutional rights of these obliged subjects. It is, therefore, a path that should not be followed.
Amendment 213 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) In order not to overburden the new authority, AMLA's powers should be strictly confined to the most relevant entities in the financial sector and only be gradually expanded. Any expansion of AMLA's powers should be done following an impact assessment taking into account the current state of harmonisation. Any changes to the AMLA's powers should be introduced via the regular legislative procedure.
Amendment 216 #
Proposal for a regulation
Recital 7
Recital 7
(7) A seat agreement should be established between the Authority and the host Member State, stipulating the conditions of establishment of the seat and advantages conferred by the Member State on the Authority and its staff. The host city of the Authority shall provide good accessibility, proximity to financial centres, adequate education facilities, a strong labour market and adequate cultural facilities in order to allow the Authority to recruit highly qualified staff;
Amendment 221 #
Proposal for a regulation
Recital 9
Recital 9
(9) With the objective to strengthen AML/CFT rules at Union level and to enhance their clarity while ensuring consistency with international standards and other legislation, it is necessary to establish the coordinating role of the Authority at Union level in relation to all types of obliged entities to assist national supervisors and promote supervisory convergence, in order to increase the efficiency of the implementation of AML/CFT measures, also in the non- financial sector. Consequently, the Authority should be mandated to prepare regulatory technical standards, to adopt guidelines, recommendations and opinions with the aim that where supervision remains at national level, the same supervisory practices and standards apply in principle to all comparable entities. The Authority should be entrusted, due to its highly specialised expertise, with the development of a supervisory methodology, in line with a risk-based approach. Certain aspects of the methodology, which can incorporate harmonised quantitative benchmarks, such as approaches for classifying the inherentML/TF risk profile of obliged entities should be detailed in directly applicable binding regulatory measures – regulatory or implementing technical standards. Other aspects, which require wider supervisory discretion, such as approaches to assessing residual risk profile and internal controls in the obliged entities should be covered by non-binding guidelines, recommendations and opinions of the Authority. The harmonised supervisory methodology should take due account of, and where appropriate, leverage the existing supervisory methodologies relating to other aspects of supervision of the financial sector obliged entities, especially where there is interaction between AML/CFT supervision and prudential supervision. Specifically, the supervisory methodology to be developed by the Authority should be complementary to guidelines and other instruments developed by the European Banking Authority detailing approaches of prudential supervisory authorities with respect to factoring ML/TF risks in prudential supervision, in order to ensure effective interaction between prudential and AML/CFT supervision.
Amendment 224 #
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 be strictly limited to interaction with relevant supervisory authorities, and should not include any direct interaction with non- selected obliged entities. 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 227 #
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 and taking into account the confidentiality of the information, 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 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 231 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) National supervisory authorities should provide the Authority with all the requisite information concerning selected obliged entities and, in exceptional cases, non-selected obliged entities. Requests for information concerning non-selected obliged entities should be duly justified and driven by AML/CFT supervisory efforts;
Amendment 241 #
Proposal for a regulation
Recital 16
Recital 16
(16) ML/FT supervision should be risk- based. The first category of credit and financial institutions, or groups of such institutions should be assessed 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 States.
Amendment 242 #
Proposal for a regulation
Recital 16
Recital 16
(16) The first category of credit and financial institutions, or groups of such institutions should be assessed 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 States.
Amendment 243 #
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 inherentresidual 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, risk- proportionate and not dependent on the discretion of a given supervisory authority in a Member State, or the discretion of the Authority.
Amendment 261 #
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 inherentresidual profile from thewith regard to 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 pecuniary financial sanctions and take other coercive measures. To prevent money laundering and terrorism risks from materialising, the deadline for action at national level should be sufficiently short.
Amendment 292 #
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 shortlist from the Commission and a confirmation vote 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 358 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) collect information, in accordance with Article 11(a) from its own supervisory activities and those of the supervisors and supervisory authorities on weaknesses identified in the application of AML/CFT rules by obliged entities, their risk exposure, the sanctions administered and the remedial actions applied;
Amendment 359 #
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 obliged financial entities and virtual assets service providers by means of supervisors and supervisory authorities and keep up to date;
Amendment 380 #
Proposal for a regulation
Article 5 – paragraph 2 – point d
Article 5 – paragraph 2 – point d
(d) develop and maintain up to date a system to assess the risks and vulnerabilities of the selected obliged entities to inform the supervisory activities of the Authority and supervisory authorities, including through the collection of data from these entities. This collection of data should be included in the regular reporting of information within the framework of Article 11(a).
Amendment 388 #
Proposal for a regulation
Article 5 – paragraph 3 – point e
Article 5 – paragraph 3 – point e
(e) contribute to the convergence of supervisory practices and promotion of high supervisory standards in the area of AML/CFT, including the development and implementation, for obliged financial entities and virtual asset service providers, of a common AML/CFT reporting methodology that incorporates common regulatory templates;
Amendment 420 #
Proposal for a regulation
Article 6 – paragraph 2 – point a
Article 6 – paragraph 2 – point a
(a) to require the submission of any information or document, including written or oral explanations, necessary for the performance of its functions, including statistical information, common regulatory templates sent by obliged financial entities and supervised virtual asset service providers, and information concerning internal processes or arrangements of national authorities;
Amendment 444 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. TIn cooperation with national supervisory authorities, the Authority shall develop and maintain an up-to-date and harmonised AML supervisory methodology detailing the risk-based approach to supervision of obliged entities in the Union. The methodology shall comprise guidelines, recommendations and other measures and instruments as appropriate, including in particular draft regulatory and implementing technical standards, on the basis of the empowerments laid down in the acts referred to in Article 1(2).
Amendment 448 #
Proposal for a regulation
Article 8 – paragraph 2 – introductory part
Article 8 – paragraph 2 – introductory part
2. When developing the supervisory methodology the Authority shall make a distinction between obliged entities based on the sectors in which they operate and the specific money-laundering risks they face. The supervisory methodology shall be risk-based and contain at least the following elements:
Amendment 452 #
Proposal for a regulation
Article 8 – paragraph 2 – point c
Article 8 – paragraph 2 – point c
(c) approaches to supervisory review of obliged entities’ internal policies and procedures of obliged entities, including customer due diligence policies and procedures;
Amendment 453 #
Proposal for a regulation
Article 8 – paragraph 2 – point c
Article 8 – paragraph 2 – point c
(c) approaches to a risk-based supervisory review of obliged entities’ internal policies and procedures of obliged entities, including customer due diligence policies;
Amendment 454 #
Proposal for a regulation
Article 8 – paragraph 2 – point d a (new)
Article 8 – paragraph 2 – point d a (new)
(da) the use and type of information contained in the common regulatory templates for obliged financial entities and virtual asset service providers. Those common regulatory templates should be based on objective and comparable AML data focused on key indicators of activity for AML/CFT purposes, due diligence, internal controls, and reporting obligations.
Amendment 459 #
Proposal for a regulation
Article 10 – paragraph 2 – point c
Article 10 – paragraph 2 – point c
(c) exchanges of supervisory best practices between supervisory authorities, when one authority has developed expertise in a specific area of AML/CFT supervisory practices.
Amendment 467 #
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 on a need-to-know and confidential basis. The Authority may share the results of its analysis on its own initiative with supervisory authorities, including prudential supervisors, for the purposes of facilitating their supervisory activities.
Amendment 468 #
Proposal for a regulation
Article 11 – paragraph 2 – point b a (new)
Article 11 – paragraph 2 – point b a (new)
(ba) the information included in the common regulatory templates submitted by obliged financial entities and virtual asset service providers;
Amendment 470 #
Proposal for a regulation
Article 11 – paragraph 2 – point c a (new)
Article 11 – paragraph 2 – point c a (new)
(ca) consolidated information from obliged financial institutions and virtual asset service providers that may be relevant and useful for benchmarking purposes in the risk assessment process or for other supervisory purposes.
Amendment 492 #
Proposal for a regulation
Article 11 – paragraph 4
Article 11 – paragraph 4
4. Any supervisory authority or any non-AML authority may address to the Authority a reasoned request for information collected pursuant to paragraph 2 that is relevant for its supervisory activities. The Authority shall assess those requests and provide the information requested by the supervisory authorities or non-AML authorities on a need-to-know basis and confidential basis and in a timely manner. The Authority shall inform the authority that has initially provided the requested information, of the identity of the requesting supervisory or other authority, the identity of an obliged entity concerned, the reason for the information request as well as whether the information has been provided to the requesting authority. The retention of personal data should be limited to a five- year time period, unless the Authority determines on a case-by-case-basis that a longer time period is justified.
Amendment 505 #
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Article 11a Information requests addressed directly to obliged entities 1. The supervisory authorities shall provide, in an opportune manner, the Authority with all the information regarding selected and non-selected obliged entities needed for the Authority to carry out its duties, provided that the supervisory authorities have legal access to the relevant information.
Amendment 515 #
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), the Authority shall carry out a periodic assessment of the following obliged entiticredit institutions, financial institutions and virtual asset service providers referred to in Article 12(3) with operations in more than four Member States, based on criteria and following the process specified in paragraphs 2 to 6 of this Article and in Article 13:
Amendment 518 #
Proposal for a regulation
Article 12 – paragraph 1 – point a
Article 12 – paragraph 1 – point a
Amendment 527 #
Proposal for a regulation
Article 12 – paragraph 1 – point b
Article 12 – paragraph 1 – point b
Amendment 537 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
1a. The Authority shall carry out regular analyses, focusing on the analysis of inherent risk, of obliged entities on the basis of information provided by national supervisory authorities.
Amendment 542 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. The inherentresidual risk profile of the assessed obliged entities referred to in paragraph 1, point (a) or (b) shall be classified as low, medium, substantial or high 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 543 #
Proposal for a regulation
Article 12 – paragraph 3 – introductory part
Article 12 – paragraph 3 – introductory part
3. The methodology for classifying the inherentresidual risk profile shall be established separately for at least the following categories of obliged entities:
Amendment 544 #
Proposal for a regulation
Article 12 – paragraph 3 – point c
Article 12 – paragraph 3 – point c
(c) companies that manage undertakings for collective investment in transferable securities and alternative investment funds managers;
Amendment 546 #
Proposal for a regulation
Article 12 – paragraph 3 – point c
Article 12 – paragraph 3 – point c
(c) undertaking for collective investment in transferable securities and alternative investment funds;undertakings
Amendment 549 #
Proposal for a regulation
Article 12 – paragraph 3 – point j a (new)
Article 12 – paragraph 3 – point j a (new)
(ja) virtual asset service providers;
Amendment 560 #
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 inherentresidual risk in any Member State they operate in:
Amendment 566 #
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 customerstotal number of third-country customers that are resident in geographical areas of higher risk, the presence and share of customers identified as Politically Exposed persons (‘PEPs’);
Amendment 568 #
Proposal for a regulation
Article 12 – paragraph 4 – point b – point ii
Article 12 – paragraph 4 – point b – point ii
Amendment 569 #
Proposal for a regulation
Article 12 – paragraph 4 – point b – point ii
Article 12 – paragraph 4 – point b – point ii
(ii) the volume of the deposit and payment account services provided under the freedom to provide services, together with other products and services identified as potentially vulnerable to ML/TF risks at national or EU level;
Amendment 570 #
Proposal for a regulation
Article 12 – paragraph 4 – point b – point iii
Article 12 – paragraph 4 – point b – point iii
(iii) for money remittance service providers, the significance of aggregate annual emission and reception activity of each remitter in a jurisdiction with structural weaknesses in its AML/CFT detection and prevention systems under international standards;
Amendment 573 #
Proposal for a regulation
Article 12 – paragraph 4 – point c – point i
Article 12 – paragraph 4 – point c – point i
(i) the annual volume of correspondent banking services provided by Union financial sector entities in third countries identified as vulnerable in their AML/CFT risk prevention and detection systems under international standards;
Amendment 585 #
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 inherentresidual risk profile of any cross- border credit or financial institution in each Member State it operates in as low, medium, substantial or high. All the data needed to classify the residual risk profile shall be included in the common reporting templates provided for in Article 4(a).
Amendment 602 #
Proposal for a regulation
Article 13 – paragraph 1 – point a
Article 13 – paragraph 1 – point a
(a) each credit institution assessed pursuant to Article 12 that has a high inherentresidual risk profile in at least four Member States and that has been under supervisory or other public investigation for material breaches of the acts referred to in Article 1(2) in at least one of those Member States in the previous three years;
Amendment 609 #
Proposal for a regulation
Article 13 – paragraph 1 – point b
Article 13 – paragraph 1 – point b
(b) each financial institution assessed pursuant to Article 12 that has a high inherentresidual risk in at least one Member States where it is established or operates via a subsidiary or a branch, and at least five other Member States where it operates via direct provision of services or via a network of representative agents.
Amendment 618 #
Proposal for a regulation
Article 13 – paragraph 3 a (new)
Article 13 – paragraph 3 a (new)
3a. In analysing the residual risk referred to in points (a) and (b) of paragraph 1, the Authority shall take into consideration the quality of the risk management system of obliged entities, including the results of the analysis of the supervisory convergence framework referred to in Article 28. To this end, by ... [two years after the date of entry into force of this Regulation] the Authority shall develop draft regulatory technical standards and submit them to the Commission for adoption. These technical standards shall provide guidance on how to determine the residual risk with regard to the methodology for selecting the selected obliged entities.
Amendment 635 #
Proposal for a regulation
Article 15 – paragraph 4 – subparagraph 1 (new)
Article 15 – paragraph 4 – subparagraph 1 (new)
In the composition of joint supervisory teams, the Authority shall ensure adequate representation of staff members of the financial supervisors of the Member State in which the financial institution operates. The supervisory team shall be made up of a majority of staff of financial supervisors of the Member States and compromise at least two staff members of the financial supervisor of the Member State of establishment and one staff member of the financial supervisors of the Member States where the financial institution or the obliged entity operates via subsidiaries, branches or under free provision of services.
Amendment 640 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The Authority may require selected obliged entities and natural or legal persons belonging to them, and third parties to whom the selected obliged entities have outsourced operational functions or activities and natural or legal persons affiliated to them, to provide all information that is necessary in order to carry out the tasks conferred on it by this Regulation.
Amendment 643 #
Proposal for a regulation
Article 16 – paragraph 3
Article 16 – paragraph 3
3. Where the Authority obtains information directly from the natural or legal persons referred to in paragraph 1, it shall make that information available to the financial supervisor concerned.
Amendment 664 #
Proposal for a regulation
Article 20 – paragraph 1 – point c
Article 20 – paragraph 1 – point c
(c) the arrangements, strategies, processes and mechanisms implemented by the selected obliged entity do not ensure, based on a determination by the Authority, a sound management and coverage of its money-laundering or terrorist-financing risks.
Amendment 669 #
Proposal for a regulation
Article 20 – paragraph 2 – introductory part
Article 20 – paragraph 2 – introductory part
2. For the purposes of Article 6(1) the Authority shall have, in particular, the following powers:
Amendment 670 #
Proposal for a regulation
Article 20 – paragraph 2 – point d
Article 20 – paragraph 2 – point d
(d) to restrict or limit the business, operations or network of institutions comprising the selected obliged entity, or to require the divestment of activities that pose proven excessive money laundering and terrorism financing risks;
Amendment 678 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
1. For the purpose of carrying out the tasks conferred on it by this Regulation, where a selected obliged entity intentionally or negligently repeatedly or systematically breaches a requirement listed in Annex II under directly applicable acts of Union law referred to in Article 1(2), or does not comply with a binding decision referred to in Article 6(1), the Authority may impose administrative pecuniary sanctions, under the conditions specified in paragraphs 2 to 7 of this Article.
Amendment 709 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
1. TAfter all avenues of legal recourse have been exhausted, 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 720 #
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 practicesconsistency in supervisory practices and effective application of the legislative acts referred to in article 1 (2). To that end, the Authority shall develop methods to allow for an objective assessment and comparison between the competent authorities reviewed. 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.
Amendment 726 #
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 sefiven years.
Amendment 727 #
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 thead hoc committees, which shall be composed of the Authority 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. The committees shall be chaired by a member of the Authority's staff. The Chair, after consulting the Executive Board and following an open call for participation, shall propose the chair and the members of a peer review committee which shall be approved by the General Board in supervisory composition.
Amendment 728 #
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 the information set out in the central AML/CFT database established pursuant to Article 11, as well as 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 732 #
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. Tcommittee and adopted by the General Board in supervisory composition. When drafting the report, the peer review committee shall consult the Executive Board in order to maintain consistency with other report shall be adopted by the Executive Board, taking into account the observations of the General Board in supervisory composition. 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 assessments and to ensure a level playing field. The Executive Board shall assess in particular whether the methodology has ´been applied in the same manner. The report shall explain and indicate any specific follow-up measures 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 750 #
Proposal for a regulation
Article 29 – paragraph 2 a (new)
Article 29 – paragraph 2 a (new)
2a. In accordance with Articles 34(5), 35(1) and 36(5) of Directive [OP: insert future reference of the Anti-money laundering Directive COM(2021)423], the Authority shall advise or assist financial supervisors in reaching an agreement.
Amendment 755 #
Proposal for a regulation
Article 30 – title
Article 30 – title
Requests to act in exceptional circumstances following notification of serious breaches
Amendment 785 #
Proposal for a regulation
Article 30 – paragraph 6
Article 30 – paragraph 6
6. The Commission shall have one month from the date of receipt of the request from the Authority to adopt a decision whether to authorise the transfer of the relevant tasks and powers or to oppose it. The decision shall be notified to the Authority, which shall immediately inform the financial supervisor and the non-selected obliged entity thereof. A decision to oppose the request by the Authority shall be duly justified by the Commission. A decision to authorise the transfer of the relevant tasks and powers from the financial supervisor to the Authority shall be duly justified and shall be made public.
Amendment 798 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The Authority shall periodically conduct peer reviews of some or all of the activities of non-financial supervisors to strengthen consistency and effectiveness in supervisory outcomes. To that end, the Authority shall develop methods to allow for an objective assessment and comparison between non-financial supervisors reviewed. When planning and conducting peer reviews, existing information and evaluations already available with regard to the non-financial supervisor concerned, including any relevant information provided to the Authority in accordance with Article 11 and 11(a), assessments or reports drawn up by international organisations and intergovernmental bodies competent in the field of preventing money laundering or terrorist financing and any relevant information from stakeholders shall be taken into account.
Amendment 800 #
Proposal for a regulation
Article 31 – paragraph 2
Article 31 – paragraph 2
2. For the purposes of this Article, the Authority shall establish ad hoc peer review committees, which shall be composed of staff from the Authority and members of the non-financial supervisors. The peer review committees shall be chaired by a member of the Authority’s staff. The Chair of the Authority shall, following a call for proposals, propose the chair and the members of a peer review committee which shall be approved by the Executive Boardpeer reviews shall be carried out by the staff of the Authority in cooperation with the relevant staff of the non-financial supervisors and, upon request, representatives of obliged entities in accordance with Article 3 of the Regulation [OP: insert future reference of the anti-money laundering Regulation COM(2021)420].
Amendment 816 #
Proposal for a regulation
Article 31 – paragraph 9
Article 31 – paragraph 9
9. On a case by case basis, wWhen SRBs indicate an interest to participate in a peer review exercise, representatives of such bodies entrusted with supervisory functions mayust be invited to participate in that peer review.
Amendment 818 #
Proposal for a regulation
Article 32 – title
Article 32 – title
32 PCoordinative powers over supervisory authorities in the non-financial sector
Amendment 849 #
Proposal for a regulation
Article 33 a (new)
Article 33 a (new)
Amendment 851 #
Proposal for a regulation
Article 33 b (new)
Article 33 b (new)
Article 33b Where, pursuant to Article 25 of [OP: insert the future reference of the Anti- Money Laundering Directive, COM(2021)423], and with respect to the criteria referred to in paragraph 1a of this Article, 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. The notification of the need for a joint analysis as provided for in the first subparagraph shall be registered by the Authority. The Authority shall assess the relevance of the registered cases with regard to the criteria in accordance with paragraph 1a. Based on the level of priority, the urgency of cases and available resources, the Authority shall establish a work plan and launch the joint analysis. When launching a joint analysis, 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 notification. 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. If at least one other FIU agrees to join the joint analysis, the Authority shall ensure that the joint analysis is launched within 20 days of the initial notification, unless the urgency of the case justifies the imposition of a shorter deadline in accordance with the criteria for the selection and prioritisation of cases referred to in paragraph 1a. If the FIU has not submitted a request to establish a joint analysis team, the Authority may set up such a team on its own initiative in the event it identifies cases in which: (a) the FIU’s operational analyses require difficult and demanding analyses having links with other Member States, or cases in which a number of FIUs are conducting operational analyses in which the circumstances of the case necessitate coordinated, concerted action in the Member States involved; (b) the Authority has directly received information indicating a suspicion of money laundering or financing of terrorism that could affect the internal market or relate to cross-border activities.
Amendment 855 #
Proposal for a regulation
Article 35 – paragraph 5
Article 35 – paragraph 5
5. FIU delegates may be granted access to any pertinent data accessible by their delegating FIU for the purposes of carrying out the tasks referred to in paragraph 4, subject to consent of their delegating FIU.
Amendment 871 #
Article 37a Peer reviews 1. The Authority shall periodically conduct peer reviews of some or all of the activities of FIUs with regard to analysis and dissemination methods and procedures, with a view to ensuring that FIUs provide timely and adequate information to the competent authorities. To that end, the Authority shall develop methods to allow for an objective assessment and comparison between FIUs reviewed. 2. The peer reviews shall be carried out by the staff of the Authority in cooperation with the staff of FIUs. 3. The peer reviews shall include an assessment of whether the requirements set out in Articles 17(1) to (4), (5a), (6) and (7) of the Directive have been met [OP: insert future reference of the Anti- Money Laundering Directive COM(2021)423]. 4. The Authority shall produce a report setting out the results of the peer review. That report shall be drafted by the staff of the Authority in cooperation with the staff of FIUs and adopted by the Executive Board, with due regard for the comments and recommendations of the General Board, which shall share it in a timely manner with the FIU under review. 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 pursuant to Article 43 and opinions pursuant to Article 44. The FIU shall make every effort to comply with any guidelines issued, in accordance with Article 43. The Authority shall transmit such reports without delay, on a confidential basis, at least to the European Parliament.
Amendment 894 #
Proposal for a regulation
Article 43 – paragraph 3 a (new)
Article 43 – paragraph 3 a (new)
3a. Any guidance and recommendations issued by the Authority should replace guidance and recommendations on anti-money laundering and combating terrorist financing previously issued by the European Banking Authority. A transitional period shall be introduced to enable selected obliged entities to adapt to the new procedures.
Amendment 911 #
Proposal for a regulation
Article 46 – paragraph 3 – point c a (new)
Article 46 – paragraph 3 – point c a (new)
(ca) one representative of Europol, without a right to vote;
Amendment 930 #
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 933 #
Proposal for a regulation
Article 52 – paragraph 7 – introductory part
Article 52 – paragraph 7 – introductory part
7. During a period of one year18 months after ceasing to hold office, the former members of the Executive Board, including the Chair of the Authority, are prohibited from engaging in a gainful occupational activity with
Amendment 936 #
Proposal for a regulation
Article 52 – paragraph 7 – point b
Article 52 – paragraph 7 – point b
Amendment 937 #
Proposal for a regulation
Article 52 – paragraph 7 – point b
Article 52 – paragraph 7 – point b
(b) any other entity where alinked to work previously carried out at the Authority where a proven conflict of interest exists or could be perceived to exist.
Amendment 939 #
Proposal for a regulation
Article 53 – paragraph 2
Article 53 – paragraph 2
2. The Executive Board shall adopt all the decisions addressed to selected obliged entities following the proposal of the selected obliged entity’s Joint Supervisory Team referred to in Article 15, and taking into account the opinion provided by the General Board on that proposed decision. Where the Executive Board decides to deviates from such an opinion, it shall provide the reasons thereof in writing.
Amendment 954 #
Proposal for a regulation
Article 56 – paragraph 1
Article 56 – paragraph 1
1. The 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 be published in the Official Journal of the European Union. The Commission shall draw up a shortlist of two qualified candidates for the position of the Chair of the Authority. The Council, after approval by the European Parliament, shall adopt an implementing decision to appoint the Chair of the Authority.
Amendment 966 #
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 be published in the Official Journal of the European Union, and, as appropriate, other press or internet sites. The Commission shall draw up a shortlist of two qualified candidates for the position of the Executive Director and make it available to the European Parliament. The Executive Board shall appoint the Executive Director after confirmation by the European Parliament.
Amendment 972 #
Proposal for a regulation
Article 59 – paragraph 1 – introductory part
Article 59 – paragraph 1 – introductory part
1. The Executive Director shall be in charge of the day-to-day management of the Authority and shall aim to ensure gender balancemerit and capacity within the Authority. In particular, the Executive Director shall be responsible for:
Amendment 983 #
Proposal for a regulation
Article 64 – paragraph 3 – point b
Article 64 – paragraph 3 – point b
(b) the fees paid by the selected and non-selected obliged entities in accordance with Article 65, for tasks mentioned in Article 5(1), points (b) and (c).
Amendment 986 #
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 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 direct 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 987 #
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 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 992 #
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 996 #
Proposal for a regulation
Article 65 – paragraph 6 – introductory part
Article 65 – paragraph 6 – introductory part
6. The Commission is empowered to adopt a delegated act in accordance with Article 86 to supplement this Regulation by specifying the methodology for calculating the amount of the fee levied on each selected and non-selected obliged entity subject to fees in accordance with paragraph 1, and the procedure for collecting these fees. When developing the methodology for determining the individual amount of fees the Commission shall take into account the following:
Amendment 997 #
Proposal for a regulation
Article 65 – paragraph 6 – point d
Article 65 – paragraph 6 – point d
Amendment 1003 #
Proposal for a regulation
Article 72 – paragraph 3
Article 72 – paragraph 3
3. The Chair of the Authority shall participate in a hearing on the execution of its tasks by the competent committees of the European Parliament at least annually. At the request of the European Parliament, the Chair of the Authority shall participate in ad-hoc hearings on the execution of its tasksrganised by the competent committees of the European Parliament.
Amendment 1005 #
Proposal for a regulation
Article 72 – paragraph 4
Article 72 – paragraph 4
4. The Authority shall reply orally or in writing to questions put to it by the European Parliament within four weeks.
Amendment 1060 #
Proposal for a regulation
Article 88 – paragraph 1 – point k a (new)
Article 88 – paragraph 1 – point k a (new)
(ka) the appropriateness of the procedures and thresholds to identify obliged entities for the purposes of selection for direct supervision;
Amendment 1062 #
Proposal for a regulation
Article 88 – paragraph 2 – point b
Article 88 – paragraph 2 – point b
(b) it is appropriate to confer additional supervisory tasks regarding non-financial sector obliged entities, specifying, as appropriate, the types of entities that should be subject to additional supervisory tasks;