Changes from plenary report to adopted text

Removed(59) The Authority should establish cooperative relations with the relevant Union agencies and bodies, including Europol, Eurojust, the EPPO, and the European Supervisory Authorities, namely the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority. To improve cross-sectoral supervision and a better cooperation between prudential and AML/CFT supervisors the Authority should also establish cooperative relations with the authorities competent for prudential supervision of financial sector obliged entities, including the European Central Bank with regard to matters relating to the tasks conferred on it by Council Regulation (EU) No 1024/2013, as well as with resolution authorities as defined in Article 3 of Directive (EU) 2014/59/EU of the European Parliament and the Council and designated Deposit Guarantee Schemes authorities as defined in Article 2 (1), point 18 of Directive 2014/49/EU of the European Parliament and the Council. To this end, the Authority should be able to conclude agreements or memoranda of understanding with such bodies, including with regard to any information exchange which is necessary for the fulfilment of the respective tasks of the Authority and these bodies. The Authority should make its best efforts to share information with such bodies on their request, within the limits posed by legal constraints, including data protection legislation. In addition, the Authority should enable effective information exchange between all financial supervisors in the AML/CFT supervisory system and the aforementioned authorities, such cooperation and information exchanges should take place in a structured and efficient way.

Removed(60) Public-private partnerships (‘PPPs’) have become increasingly important cooperation and information exchange fora between FIUs, various national supervisory and law enforcement authorities and obliged entities in some Member States. Where the Authority would act as direct supervisor of selected obliged entities which are part of a PPP in any Member State, it could be beneficial for the Authority to also participate therein, on conditions determined by the relevant national public authority or authorities that set up such PPP, and with their explicit agreement.

Removed(60a) The Authority should be able to set up cooperation arrangements with FIUs and selected obliged entities, as well as with other obliged entities in the financial and non-financial sector. Those cooperation arrangements should also be able to provide for the participation of supervisory authorities, FIUs, Europol and data protection authorities at national and Union level.

Removed(61) Considering that cooperation between supervisory, administrative and law enforcement authorities is crucial for successful combatting of money laundering and terrorism financing, and certain Union authorities and bodies have specific tasks or mandates in that area, the Authority should make sure that it is able to cooperate with such authorities and bodies, in particular OLAF, Europol, Eurojust, and the EPPO. If there is a need to establish specific working arrangements or conclude Memoranda of Understanding between the Authority and these bodies and authorities, the Authority should be able to do so. The arrangement should be of strategic and technical nature, should not imply sharing of any confidential or operational information in possession of the Authority and should account for tasks already carried out by the other Union institutions, bodies, offices or agencies as regards the prevention of and fight against money laundering and terrorist financing.

Removed(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. 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.

Removed(62a) It is essential that the Union joins global efforts in fighting money laundering and terrorist financing, notably the work carried out by international organisations active in the field of AML/CFT such as the Financial Action Task Force (FATF). The Commission endorsed, on behalf of the Union, the Ministerial Declaration of the FATF, as well as the revised FATF Mandate at the 12 April 2019 FATF Ministerial Meeting. As a member of FATF, the Commission needs to ensure a united, common, consistent and effective representation of the Union’s interests in FATF. Given its tasks and powers in the field of AML/CFT, the Authority should contribute to the representation of the Union and the defence of its interests in international fora, including by assisting the Commission in its tasks relating to Union membership of the FATF and by supporting the work and objectives of the Egmont Group of FIUs and of MONEYVAL, among others.

Removed(63) Since the Authority will have a full range of powers and tasks related to direct and indirect supervision and oversight of all obliged entities, it is necessary that these powers remain consolidated within one Union body, and do not give rise to conflicting competences with other Union bodies. Therefore, the European Banking Authority should not retain its tasks and powers related to anti-money laundering and countering the financing of terrorism, and the respective articles in Regulation (EU) No 1093/2010 of the European Parliament and of the Council should be deleted. The resources allocated to the European Banking Authority for the fulfilment of those tasks should be transferred to the Authority. Considering that all three European Supervisory Authorities (EBA, ESMA and EIOPA) will be cooperating with the Authority, and may attend the meetings of the General Board in supervisory composition as observers, the same possibility should be afforded to the Authority in respect of meetings of the Board of Supervisors of the European Supervisory Authorities. In cases where the respective Boards of Supervisors discuss or decide on matters that are relevant for the execution of the Authority’s tasks and powers, the Authority should be able to participate in their meetings as an observer. The articles on the compositions of the Board of Supervisors in Regulation (EU) No 1093/2010, Regulation (EU) 1094/2010 of the European Parliament and the Council, and Regulation (EU) 1095/2010 of the European Parliament and the Council should therefore be amended accordingly.

Removed(64) The Authority should be fully operation by the beginning of 2024. This should give the Authority sufficient time to establish its headquarter in the Member State as determined by this Regulation.

Removed(65) The European Data Protection Supervisor has been consulted in accordance with Article 42 of Regulation (EU) 2018/1725 [and delivered an opinion on ...],

RemovedHAVE ADOPTED THIS REGULATION:

RemovedESTABLISHMENT, LEGAL STATUS AND DEFINITIONS

RemovedEstablishment and scope of action

Removed1. The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (‘the Authority’) is established as of 1 January 2023.

Removed2. The Authority shall act within the powers conferred by this Regulation, in particular those set out in Article 6, and within the scope of Regulation (EU) 2015/847 of the European Parliament and of the Council, the Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU)2015/849 [OP: please insert the next number of COM(2021)423] and the Regulation 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 of COM(2021)422], including all directives, regulations and decisions based on those acts, of any further legally binding Union act which confers tasks on the Authority and of national legislation implementing the Anti-Money Laundering Directive [OP: please insert the next number of COM(2021)423] or other Directives conferring tasks on supervisory authorities.

Removed3. The objective of the Authority shall be to protect the public interest, the stability and the integrity of the Union’s financial system and the good functioning of the internal market by:

Removed(a) preventing the use of the Union’s financial system for the purposes of money laundering and terrorist financing;

Removed(b) contributing to identify and assess risks and threats of money laundering, especially of the broader and more complex schemes associated with criminal organisations, and terrorist financing across the internal market, as well as risks and threats originating from outside the Union that are impacting, or have the potential to impact the internal market;

Removed(c) ensuring high-quality supervision in the area of anti-money laundering and countering the financing of terrorism (‘AML/CFT’) across the internal market;

Removed(d) contributing to supervisory convergence in the area of anti-money laundering and countering the financing of terrorism across the internal market;

Removed(e) contributing to the harmonisation of practices in the detection of cross-border suspicious flows of monies or activities by Financial Intelligence Units (‘FIUs’);

Removed(f) supporting and coordinating the exchange of information between FIUs and between FIUs and others competent authorities.

RemovedThe provisions of this Regulation are without prejudice to the powers of the Commission, in particular pursuant to Article 258 TFEU, to ensure compliance with Union law.

RemovedDefinitions

Removed1. For the purposes of this Regulation, in addition to the definitions set out in Article 2 of [OP: please insert the reference to Anti-Money Laundering Regulation COM(2021)420] and Article 2 [OP: please insert the reference to 6th Anti-Money Laundering Directive COM(2021)423], the following definitions apply:

Removed(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, which is under direct supervision by the Authority pursuant to Article 13;

Removed(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, other than a selected obliged entity;

Removed(2a) ‘obliged entity in the non-financial sector’ means an obliged entity listed in Article 3 of [please insert reference to the AMLR], other than a credit institution, a financial institution, or a group of credit institutions or financial institutions at the highest level of consolidation in the Union;

Removed(3) ‘AML/CFT supervisory system’ means the Authority and the supervisory authorities in the Member States;

Removed(3a) ‘financial supervisor’ means a supervisor in charge of credit and financial institutions;

Removed(4) ‘non-financial supervisor’ means a supervisor in charge of obliged entities listed in Article 3 of [AMLR], other than credit and financial institutions.

Removed(5) ‘non-AML/CFT authority’ means:

Removed(a) a competent authority as defined in Article 4(1), point (40) of Regulation (EU) No 575/2013 of the European Parliament and of the Council;

Removed(b) the European Central Bank when it carries out the tasks conferred on it by Council Regulation (EU) No 1024/2013;

Removed(c) a resolution authority designated in accordance with Article 3 of Directive 2014/59/EU of the European Parliament and of the Council;

Removed(d) a deposit guarantee schemes (‘DGS’) designated authority as defined in Article 2(1), point (18) of Directive 2014/49/EU of the European Parliament and of the Council.

Removed(5a) ‘highest level of consolidation in the Union’ means the highest level at which a group, including all its subsidiaries and branches within and outside the Union, is consolidated in the Union, as determined in accordance with Part One, Title II, Chapter 2, Section 1 of Regulation (EU) No 575/2013 of the European Parliament and of the Council1a.

RemovedLegal Status

Removed1. The Authority shall be a Union body with legal personality.

Removed2. In each Member State, the Authority shall enjoy the most extensive legal capacity accorded to legal persons under national law. It may, in particular, acquire or dispose of movable and immovable property and be a party to legal proceedings.

Removed3. The Authority shall be represented by its Chair.

RemovedSeat

RemovedThe Authority shall have its seat in […]

Removed[The choice of the location of the seat of the Authority shall be made in accordance with the ordinary legislative procedure, on the basis of the following criteria:

Removed(a) 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;

Removed(b) 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;

Removed(c) it shall ensure that the Authority can be set up on site upon the entry into force of this Regulation;

Removed(d) 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;

Removed(e) it shall ensure a balanced geographical distribution of Union institutions, bodies and agencies across the Union;

Removed(f) it shall ensure its national AML/CFT framework is of a proven quality and repute, and shall benefit from the experience of national authorities;

Removed(g) it shall enable adequate training opportunities for AML/CFT activities;

Removed(h) it shall enable close cooperation with Union institutions, bodies and agencies;

Removed(i) it shall ensure sustainability and digital security and connectivity with regard to physical and IT infrastructure and working conditions.]

RemovedTASKS AND POWERS OF THE AUTHORITY

RemovedTasks and powers

RemovedTasks

Removed1. The Authority shall perform the following tasks with respect to money laundering/ terrorist financing (‘ML/TF’) risks facing the internal market:

Removed(a) monitor and respond to developments across the internal market and assess threats, vulnerabilities and risks in relation to ML/TF, including cross-border transactions;

Removed(b) monitor and respond to developments in third countries and assess threats, vulnerabilities and risks in relation to their AML/CFT systems;

Removed(ba) contribute to the drawing up of the lists of high risk third countries referred to in [please add reference to AMLR];

Removed(c) collect information from selected and non-selected obliged entities, 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;