Changes from plenary report to adopted text

Removed(d) ensure that all relevant information is collected and shared by the financial supervisors in order to facilitate the work of the college and make such information accessible to the relevant authorities in the college;

Removed(e) promote effective and efficient supervisory practices, including evaluating the risks to which obliged entities are or might be exposed;

Removed(f) oversee, in accordance with the tasks and powers specified in this Regulation, the tasks carried out by the financial supervisors;

Removed(fa) provide assistance to financial supervisors, upon their specific requests, including the requests to mediate between financial supervisors, as referred to in Article 5(3), point (g);

Removed(fb) settle, with binding effect, disagreements between financial supervisors on the measures to be taken by financial supervisors in relation to an obliged entity, upon a request as referred to in Article 5(3), point (ga);

Removed(fc) report to the Commission any instances where the absence of effective and efficient supervisory practices and activities in the context of AML/CFT supervisory colleges derives from inadequate or lack of transposition of Union law into national law.

Removed1a. AML/CFT supervisory colleges shall consist of permanent members and, where deemed necessary by the permanent members, observers. The Authority and financial supervisors shall be permanent members. Observers may include prudential supervisors, including the European Central Bank, the European Supervisory Authorities, where relevant, AML/CFT supervisors from third countries, and FIUs and any other authorities deemed necessary by the permanent members.

Removed2. For the purposes of paragraph 1, the staff of the Authority shall have full participation rights in the AML/CFT supervisory colleges and shall be able to participate in their activities, including on-site inspections, carried out jointly by two or more financial supervisors.

Removed2a. An AML/CFT supervisory college that has already been established in accordance with Article 36 [OP please insert the next number to the AMLD, COM(2021)423] shall suspend its work for the period during which the Authority exercises direct supervision over the relevant selected obliged entity. That AML/CFT supervisory college shall resume its work once the relevant obliged entity is no longer selected by the Authority.

RemovedRequests to act in exceptional circumstances following indications of serious, repeated or systematic breaches

Removed1. Financial supervisors shall notify the Authority where the situation of any non-selected obliged entity with regard to its compliance with applicable requirements and its exposure to money laundering and terrorism financing risks deteriorates rapidly or significantly, especially where such deterioration could lead to significant harm to the integrity of the financial system or to the reputation of ▐several Member States or of the Union as a whole.

Removed2. The Authority may, where it has indications of serious, repeated or systematic breaches by a non-selected obliged entity, request its financial supervisor to:

Removed(a) investigate such breaches of Union law, and where such Union law is composed of Directives or explicitly grants options for Member States, breaches of national law to the extent that it transposes Directives or exercises options granted to Member States by Union law, by a non-selected obliged entity; and

Removed(b) consider imposing sanctions in accordance with directly applicable Union law or national law transposing Directives on that entity in respect of such breaches.

RemovedWhere 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.

Removed2a. The Authority may initiate such requests where it has indications of serious, repeated or systematic breaches following information provided by financial supervisors pursuant to paragraph 1, by the reporting mechanism pursuant to Article 76a, by the Union institutions and bodies, through its own collection of information under Article 11, Article 11a or Article 28, or by any other credible information sources.

RemovedFor the purpose of this paragraph, the Commission shall establish a procedure for defining the conditions and arrangements for the Commission to request the Authority to exercise its powers under this Article in light of information in the possession of the Commission.

Removed3. 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 five 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.

Removed4. Where the financial supervisor concerned does not comply with the request referred to in paragraph 2 and does not inform the Authority of the steps it has taken or intends to take to comply with the request within five days from the day of the notification of the request, the Authority may request the Commission to grant permission to transfer 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.

Removed5. The request from the Authority to the Commission pursuant to paragraph 3 shall contain:

Removed(a) a description of the serious, repeated or systematic breaches of the directly applicable requirements by an identified non-selected obliged entity and a justification that such breaches fall within the scope of competence of the Authority, pursuant to paragraph 2;

Removed(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;

Removed(c) a time limit, which shall not exceed three years, for the requested transfer of the relevant tasks and powers;

Removed(d) a description of the measures that the Authority intends to take in relation to the non-selected obliged entity upon the transfer of the relevant tasks and powers to address the material breaches referred to in paragraph 2.

Removed6. The Commission shall have 10 working days 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. A decision to oppose the request by the Authority, as well as a decision to authorise the transfer, shall be duly justified by the Commission. The decision shall be notified to the Authority, which shall immediately inform the financial supervisor and the non-selected obliged entity thereof. The decision shall also be communicated to the European Parliament and to the Council. A decision authorising the transfer of the relevant tasks and powers from the financial supervisor to the Authority shall be made public.

Removed7. 24 hours 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 decision shall set a time-limit for the exercise of these tasks and powers, upon the expiry of which they shall be automatically transferred back to the financial supervisor concerned.

RemovedRequests to act in exceptional circumstances upon the request of a financial supervisor

Removed1. The Authority shall, at the request of a financial supervisor, assess whether or not it is necessary to exercise direct supervision of non-selected obliged entities in accordance with this Regulation for the purposes of ensuring the consistent application of high supervisory standards.

RemovedMember States may set out specific arrangements regarding the delegation of responsibilities that have to be complied with before their competent authorities enter into such delegation agreements, and may limit the scope of delegation to what is necessary for the effective supervision of cross-border financial market participants or groups.

Removed2. The financial supervisor’s request shall do all of the following:

Removed(a) identify the non-selected obliged entity in respect of which the financial supervisor is of the view that the Authority should assume direct supervision;

Removed(b) state the reasons for which AML/CFT direct supervision of the non-selected obliged entity is necessary for the purposes of ensuring the consistent application of high supervisory standards;

Removed(c) identify the proposed duration of the requested transfer of the relevant tasks and powers.

Removed3. The financial supervisor’s request shall be accompanied by a report indicating the supervisory history and risk profile of the non-selected obliged entity that has been identified in the financial supervisor´s request.

Removed4. If the Authority does not agree with the financial supervisor’s request, it shall consult with that financial supervisor prior to its final assessment as to whether AML/CFT supervision by the Authority of the non-selected obliged entity is necessary for the purposes of ensuring the consistent application of high supervisory standards.

RemovedSettlement of disagreements between competent authorities in cross-border situations

Removed1. Without prejudice to the powers laid down in Section III and those specified in Directive [please insert reference to the 6th Anti-money Laundering Directive], the Authority may assist financial supervisors in reaching an agreement in accordance with the procedure set out in paragraphs 2 to 4 of this Article at the request of one or more financial supervisors where a financial supervisor disagrees with the procedure or content of an action, proposed action, or inactivity of another financial supervisor.

Removed2. The financial supervisors shall notify the Authority without undue delay that an agreement has not been reached in the following cases:

Removed(a) where a time limit for reaching an agreement between the financial supervisors has been provided for in Union law, and either of the following occurs:

Removed(i) the time limit has expired; or

Removed(ii) a financial supervisor concludes that a disagreement exists, on the basis of objective reasons;

Removed(b) where no time limit for reaching an agreement between the financial supervisors has been provided for in the Union legislative acts referred to in Article 1(2), and either of the following occurs:

Removed(i) a financial supervisor concludes that a disagreement exists on the basis of objective reasons; or

Removed(ii) two months have elapsed from the date of receipt by a financial supervisor of a request from another financial supervisor to take certain action in order to comply with those legislative acts and the requested supervisor has not adopted a decision that satisfies the request.

Removed3. The Executive Board shall assess whether the Authority should act in accordance with paragraph 1.

Removed4. The Authority shall set a time limit for conciliation between the financial supervisors taking into account any relevant time periods specified in Union law and the complexity and urgency of the matter. For the purposes of the conciliation phase, the Authority shall act as a mediator.

Removed5. Where the financial supervisors fail to reach an agreement during the conciliation phase referred to in paragraph 4, the Authority may take a decision requiring those supervisors to take specific action, or to refrain from certain action, in order to settle the matter, and to ensure compliance with Union law. The decision of the Authority shall be binding on the financial supervisors. The Authority’s decision may require financial supervisors to revoke or amend a decision that they have adopted or to make use of the powers which they have under the relevant Union law.

RemovedThe Authority shall notify the financial supervisors of the conclusion of the procedures under paragraphs 4 and 5 together with, where applicable, its decision taken under paragraph 5.

Removed6. Without prejudice to the powers of the Commission pursuant to Article 258 TFEU, where a financial supervisor does not comply with the decision of the Authority, and thereby fails to ensure that a financial institution or, in the context of matters relating to the prevention and countering of money laundering or of terrorist financing, a financial sector operator complies with requirements directly applicable to it by virtue of the relevant Union law, the Authority may adopt an individual decision addressed to that financial institution or financial sector operator requiring it to take necessary action to comply with its obligations under Union law, including the cessation of any practice.

RemovedThe Authority may also adopt a decision in accordance with the first subparagraph of this paragraph where the relevant requirements of the relevant Union law are not directly applicable to financial sector operators. To that effect, the Authority shall apply relevant Union law, and where such Union law is composed of Directives, national law to the extent that it transposes those Directives. Where the relevant Union law is composed of Regulations and where those Regulations expressly grant options for Member States, the Authority shall apply also national law to the extent that such options have been exercised.

Removed7. Decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the financial supervisors on the same matter. Any action by the financial supervisors in relation to facts which are subject to a decision pursuant to paragraph 5 or 6 shall be compatible with those decisions.

Removed8. In the report referred to in Article 72, the Chair of the Authority shall set out the nature and type of disagreements between financial supervisors, the agreements reached and the decisions taken to settle such disagreements.

RemovedBreach of Union law

Removed1. Where a supervisory authority has not applied measures laid down in Directive [please insert reference – proposal for 6th Anti-Money Laundering Directive - COM/2021/423 final] or the provisions of national law transposing that Directive, or has applied measures in a way that appears to be a breach of Union law, in particular by failing to ensure that an entity under its supervision satisfies the requirements laid down in Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final], the Authority shall act in accordance with the powers set out in paragraphs 2, 3, 4, 6 and 7 of this Article.

Removed2. Upon the request of one or more supervisory authorities, or the European Parliament, the Council, the Commission, or on its own initiative, including where based on well-substantiated information from natural or legal persons, and after having informed the supervisory authority concerned, the Authority shall outline how it intends to proceed with the case and, where appropriate, investigate the alleged breach or non-application of Union law.

RemovedThe supervisory authority shall, without delay, provide the Authority with all information which the Authority considers necessary for its investigation includingwith regard to how the acts referred to in paragraph 1 are applied in accordance with Union law.

RemovedWhenever requesting information from the supervisory authority has proven, or is deemed to be, insufficient to obtain the information that is deemed necessary for the purposes of investigating an alleged breach or non-application of Union law, the Authority may, after having informed the supervisory authority, address a duly justified and reasoned request for information directly to other supervisory authorities. The addressees of such a request shall, without undue delay, provide the Authority with clear, accurate and complete information.

Removed3. The Authority may, no later than six months from the date of initiating its investigation, address a recommendation to the supervisory authority subject to investigation setting out the action necessary to comply with Union law.

RemovedBefore issuing such a recommendation, the Authority shall engage with the supervisory authority, where it considers such engagement appropriate in order to resolve a breach of Union law, in an attempt to reach agreement on the actions necessary for compliance with Union law.

RemovedThe supervisory authority shall, within 10 working days of receipt of the recommendation, inform the Authority of the steps it has taken or intends to take to ensure compliance with Union law.