Changes from plenary report to adopted text

RemovedRecital 47: (47) Cross-border correspondent relationships with a third-country’s respondent institution are characterised by their on-going, repetitive nature. Moreover, not all cross-border correspondent banking services present the same level of money laundering and terrorist financing risks. Therefore, the intensity of the enhanced due diligence measures should be determined by application of the principles of the risk based approach. However, the risk based approach should not be applied when interacting with third-country’s respondent institutions that have no physical presence where they are incorporated or with unregistered and unlicensed entities providing crypto-asset services. Given the high risk of money laundering and terrorist financing inherent in shell banks and unregistered and unlicensed entities, credit institutions and financial institutions should refrain from entertaining any correspondent relationship with such shell banks and with unregistered and unlicensed entities providing crypto-asset services. In order to facilitate compliance by obliged entities, AMLA should establish and maintain a non-exhaustive public register of entities identified as shell banks or unregistered or unlicensed crypto-asset service providers on the basis of information submitted by competent authorities, supervisors and other obliged entities. The inclusion of a specific entity in the public register is merely indicative and should not replace the obligation on obliged entities to take ade…

RemovedRecital 48 a (new): (48a) Self-hosted addresses enable their users to receive, send and exchange crypto-assets across the world, without revealing their identity or being subject to any customer due diligence measures. While transactions recorded on the distributed ledger can be traced back to a particular self-hosted address, it may be very difficult or impossible to link such address to a real person. For that reason, it is possible to misuse self-hosted addresses to conceal criminal activities or circumvent targeted financial sanctions. In order to manage and mitigate those risks appropriately, crypto-asset service providers should be required to establish, to the extent possible, the identity of the originator or beneficiary of a transaction made from or to a self-hosted address and apply any additional enhanced due diligence measures adequate to the level of risk identified. Crypto-asset service providers can rely on secure and trusted means of verification performed by third parties. The verification requirement should not be interpreted as implying onboarding the person who owns or controls the self-hosted address as a customer. In order to ensure consistent application of this Regulation, AMLA should develop draft regulatory technical standards to specify, taking into account the latest technological developments, the criteria and means for the identification and verification of the originator or beneficiary of a transaction with a self-hosted address.

RemovedRecital 49: (49) In order to protect the proper functioning of the Union financial system from money laundering and terrorist financing, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) should be delegated to the Commission to identify third countries, whose shortcomings in their national AML/CFT regimes represent a threat to the integrity of the Union’s internal market. The changing nature of money laundering and terrorist financing threats from outside the Union, facilitated by a constant evolution of technology and of the means at the disposal of criminals, requires that quick and continuous adaptations of the legal framework as regards third countries be made in order to address efficiently existing risks and prevent new ones from arising. The Commission should take into account information from other Union institutions, bodies and agencies, competent authorities, civil society organisations, academia, and by international organisations and standard setters in the field of AML/CFT, such as FATF public statements, mutual evaluation or detailed assessment reports or published follow-up reports, and adapt its assessments to the changes therein, where appropriate.

RemovedRecital 52: (52) Countries that are not publicly identified as subject to calls for actions or increased monitoring by international standard setters might still pose a threat to the integrity of the Union’s financial system and the orderly functioning of the internal market. AMLA should monitor developments in third countries and assess the related threats and risks for the Union. To mitigate those risks, it should be possible for AMLA to take action by identifying, based on a clear set of criteria and with the support of other Union institutions, bodies and agencies, and competent authorities, analysis by civil society organisations and academia, as well as assessments or reports drawn up by international organisations and standard setters with competence in the field of preventing money laundering and combating terrorist financing, third countries or territories posing a specific and serious threat to the Union’s financial system, which may be due to either compliance weaknesses or significant strategic deficiencies of a persistent nature in their AML/CFT regime, and the relevant mitigating measures. For that purpose, AMLA should develop draft regulatory technical standards to identify specific enhanced due diligence measures to be applied by obliged entities to mitigate risks related to business relationships or occasional transactions involving natural or legal persons from a high third country that poses a specific and serious threat to the Union. According to the level of risk pos…

RemovedRecital 53: (53) Considering that there may be changes in the AML/CFT frameworks of those third countries in their implementation, for example as result of the country’s commitment to address the identified weaknesses or of the adoption of relevant AML/CFT measures to tackle them, which could change the nature and level of the risks emanating from them, the Commission should regularly review the identification of those specific enhanced due diligence measures in order to ensure that they remain proportionate and adequate. The Commission should publish such reviews.

RemovedRecital 53 a (new): (53a) Certain credit or financial institutions not established in the Union could also pose a specific and serious threat to the financial system of the Union. To mitigate that threat, AMLA should be able, on its own initiative or at the request of the specific bodies set out in this Regulation, to take action by identifying credit or financial institutions not established in the Union which pose a specific and serious threat to the Union’s financial system. Depending on the level of risk posed to the Union’s financial system, AMLA should require selected obliged entities to apply concrete measures to mitigate risks and should be able to adopt decisions addressed to financial supervisors to ensure that non-selected obliged entities apply uniform mitigating measures to the ones identified by AMLA.

RemovedRecital 54: (54) Potential external threats to the Union’s financial system do not only emanate from third countries, but can also emerge in relation to specific customer risk factors or products, services, transactions or delivery channels which are observed in relation to a specific geographical area outside the Union. There is therefore a need to identify money laundering and terrorist financing trends, risks and methods to which Union’s obliged entities may be exposed. AMLA, with the support of other Union bodies and agencies, including Europol, already involved in the AML/CFT framework, and competent authorities, is best placed to detect any emerging ML/TF typologies from outside the Union, to monitor their evolution with a view to providing guidance to the Union’s obliged entities on the need to apply enhanced due diligence measures aimed at mitigating such risks.

RemovedRecital 57: (57) When customers are no longer entrusted with a prominent public function, they can still pose a higher risk, for example because of the informal influence they could still exercise, or because their previous and current functions are linked. It is essential that obliged entities take into consideration those continuing risks and apply one or more enhanced due diligence measures until such time that the individuals are deemed to pose no further risk, and in any case for not less than 24 months following the time when they are no longer entrusted with a prominent public function.

RemovedRecital 60 a (new): (60a) Business relationships and occasional transactions involving high-net-worth customers who present one or several factors of high risk could seriously compromise the integrity of the Union’s financial system and cause serious vulnerabilities in the internal market. Obliged entities should therefore determine on a risk-sensitive basis whether the customer or the beneficial owner of the customer is a high-risk high net worth individual in the course of due diligence procedures. Where an obliged entity identifies that a customer or the beneficial owner of a customer is a high-risk high net worth individual, it should apply specific enhanced customer due diligence measures as laid down in this Regulation with respect to those customers.

RemovedRecital 62: (62) Obliged entities may outsource tasks relating to the performance of customer due diligence to an agent or external service provider unless they are established in third countries that are designated as high-risk, as having compliance weaknesses or as posing a threat to the Union’s financial system. Those outsourcing activities should support obliged entities, to obtain complete, timely and accurate information by using decision-making tools, such as global news, business, regulatory and legal databases. In the case of agency or outsourcing relationships on a contractual basis between obliged entities and external service providers not covered by AML/CFT requirements, any AML/CFT obligations upon those agents or outsourcing service providers could arise only from the contract between the parties and not from this Regulation. Therefore, the responsibility for complying with AML/CFT requirements should remain entirely with the obliged entity itself. The obliged entity should in particular ensure that, where an outsourced service provider is involved for the purposes of remote customer identification, the risk-based approach is respected. The outsourcing of tasks deriving from requirements under this Regulation for the purpose of performing customer due diligence to an agent or external service provider should not exempt the obliged entity from any obligation under Regulation (EU) 2016/679, including under Article 28 thereof.

RemovedRecital 65: (65) Detailed rules should be laid down to identify the beneficial owners of corporate and other legal entities and to harmonise definitions of beneficial ownership. While a specified percentage shareholding or ownership interest does not automatically determine the beneficial owners, it should be one factor among others to be taken into account. Control through ownership interest should be assessed on every level of ownership, meaning that the specific threshold should apply to every link level in the ownership structure and that every level in the ownership structure and the combination of them should be properly examined. In the event of indirect shareholding, the beneficial owners should be identified by multiplying the shares in the ownership chain. To that end, all shares directly or indirectly owned by the same natural person should be added together.

RemovedRecital 66: (66) A meaningful identification of the beneficial owners requires a determination of whether control is exercised via other means. The determination of control through an ownership interest is necessary but not sufficient and it does not exhaust the necessary checks to determine the beneficial owners. The test on whether any natural person exercises control via other means is not a subsequent test to be performed only when it is not possible to determine an ownership interest. The two tests, namely that of control through an ownership interest and that of control via other means, should be performed in parallel. Control through other means may include the right to appoint or remove more than half of the members of the board of the corporate entity; the ability to exert a significant influence on the decisions taken by the corporate entity; control through formal or informal agreements with owners, members or the corporate entities, as well as voting arrangements; links with family members of managers or directors or those owning or controlling the corporate entity; use of formal or informal nominee arrangements or control through debt instruments or other financing arrangements.

RemovedRecital 72: (72) There is a need to ensure a level playing field among the different types of legal forms and to avoid the misuse of trusts and legal arrangements, which are often layered in complex structures to further obscure beneficial ownership. Trustees of any express trust administered in a Member State should thus be responsible for obtaining and holding adequate, accurate and current beneficial ownership information regarding the trust and for disclosing their status and providing this information to obliged entities carrying out costumer due diligence, taking into account the specificities and risks of different legal systems, including common law jurisdictions Any other beneficial owner of the trust should assist the trustee in obtaining such information.

RemovedRecital 73: (73) In view of the specific structure of certain legal entities such as foundations, and the need to ensure sufficient transparency about their beneficial ownership, such entities and legal arrangements similar to trusts should be subject to equivalent beneficial ownership requirements as those that apply to express trusts, with due account to the specificities inherent to the different legal entities, in particular civil society organisations.

RemovedRecital 77: (77) Suspicions, suspicious transactions, including attempted transactions, and other information relating to money laundering, its predicate offences and terrorist financing, should be reported to the FIU, which should serve as a single central national unit for receiving and, analysing reported suspicions and for disseminating to the competent authorities the results of its analyses. FIUs shall strengthen cooperation with other competent authorities to ensure that meaningful information is exchanged in a timely and constructive manner in accordance with the applicable legal framework. All suspicious transactions, including attempted transactions, should be reported, regardless of the amount of the transaction. Reported information may also include threshold-based information. The disclosure of information to the FIU in good faith by an obliged entity or by an employee or director of such an entity should not constitute a breach of any restriction on disclosure of information and should not involve the obliged entity or its directors or employees in liability of any kind.

RemovedRecital 78: (78) Differences in suspicious transaction reporting obligations between Member States may exacerbate the difficulties in AML/CFT compliance experienced by obliged entities that have a cross-border presence or operations. Moreover, the structure and content of the suspicious transaction reports have an impact on the FIU’s capacity to carry out analysis and on the nature of that analysis, and also affects FIUs’ abilities to cooperate and to exchange information. In order to facilitate obliged entities’ compliance with their reporting obligations and allow for a more effective functioning of FIUs’ analytical activities and cooperation, AMLA should develop draft regulatory standards specifying a common template for the reporting of suspicions to be used as a uniform basis throughout the Union. To simplify and accelerate reporting of suspicions by obliged entities and communications and exchange of information between FIUs, AMLA should establish a secure and reliable electronic filing system (“FIU.net one-stop-shop") for reporting suspicions of money laundering, predicate offences and terrorist financing, including on attempted transactions via a standardised form to the FIU of the Member State in whose territory the obliged entity transmitting the information is established. Such interface should also allow for the immediate transmission of this information to any other FIU which is concerned by a suspicious transaction report. The FIU.net one-stop-shop should also enable commun…

RemovedRecital 79: (79) FIUs should be able to obtain swiftly from any obliged entity all the necessary information relating to their functions. Their unfettered and swift access to information is essential to ensure that flows of money can be properly traced and illicit networks and flows detected at an early stage. The need for FIUs to obtain additional information from obliged entities based on a suspicion of money laundering or financing of terrorism might be triggered by a prior suspicious transaction report reported to the FIU, but might also be triggered through other means such as the FIU’s own analysis, intelligence provided by competent authorities or information held by another FIU. FIUs should therefore be able, in the context of their functions, to obtain information from any obliged entity, even without a prior report being made. Obliged entities should reply to a request for information by the FIU as soon as possible and, in any case, within five working days, unless the FIU determines a different deadline. In justified and urgent cases, the obliged entity should be able to respond to the FIU’s request as soon as possible, and within a deadline that should not be longer than one working day. This does not include indiscriminate requests for information to the obliged entities in the context of the FIU's analysis, but only information requests based on sufficiently defined conditions. An FIU should also be able to obtain such information on a request made by another Union FIU and …

RemovedRecital 81: (81) Notaries, lawyers and other independent legal professionals, auditors, external accountants and tax advisors should be allowed not to transmit to the FIU or a self-regulatory body any information obtained from persons where such information has been received from, or obtained on, one of their clients, in the course of ascertaining the legal position of their client except where the legal advice is provided for the purpose of money laundering or terrorist financing, or where those persons know or suspect, on the basis of factual and objective circumstances, that the client is seeking legal advice, including in relation to tax matters or citizenship or residence by investment schemes, for the purposes of money laundering or terrorist financing and the advice is not sought in relation to judicial proceedings, or in performing their task of defending or representing that client in, or concerning, judicial proceedings, including providing advice on instituting or avoiding such proceedings, whether such information is received or obtained before, during or after such proceedings. Member States should be able to adopt or maintain additional reporting obligations with regard to specific transactions that involve a particularly high risk to be used for money laundering or terrorist financing to which the exemption from the requirements to transmit information does not apply.

RemovedRecital 82: (82) Obliged entities should exceptionally be able to carry out suspicious transactions before informing the competent authorities where refraining from doing so is impossible or likely to frustrate efforts to pursue the beneficiaries of a suspected money laundering or terrorist financing operation, including in duly justified cases, where this is provided in national law. However, this exception should not be invoked in relation to transactions concerned by the international obligations accepted by the Member States to freeze without delay funds or other assets of terrorists, terrorist organisations or those who finance terrorism, in accordance with the relevant United Nations Security Council resolutions.

RemovedRecital 86: (86) It is essential that the alignment of the AML/CFT framework with the revised FATF Recommendations is carried out in full compliance with Union law, in particular as regards Union data protection law and the protection of fundamental rights as enshrined in the Charter. Certain aspects of the implementation of the AML/CFT framework involve the collection, analysis, storage and sharing of data. Such processing of personal data should be permitted, while fully respecting fundamental rights, only for the purposes laid down in this Regulation, and for carrying out customer due diligence, ongoing monitoring, analysis and reporting of unusual and suspicious transactions, identification of the beneficial owner of a legal person or legal arrangement, identification of a politically exposed person and sharing of information by credit institutions and financial institutions and other obliged entities. The collection and subsequent processing of personal data by obliged entities should be limited to what is necessary for the purpose of complying with AML/CFT requirements and personal data should not be further processed in a way that is incompatible with that purpose. In particular, the processing of special categories of personal data and of personal data relating to criminal convictions and offences should be subject to appropriate safeguards laid down in this Regulation. Further processing of personal data for commercial purposes should be strictly prohibited.

RemovedRecital 93: (93) The anonymity of crypto-assets exposes them to risks of misuse for criminal purposes. Anonymous crypto-asset accounts as well as other anonymising instruments, do not allow the traceability of crypto-asset transfers, whilst also making it difficult to identify linked transactions that may raise suspicion or to apply to adequate level of customer due diligence. In order to ensure effective application of AML/CFT requirements to crypto-assets, it is necessary to prohibit the provision and the custody of anonymous crypto-asset accounts allowing for the anonymisation of the customer account holder or the increased obfuscation of transactions. Anonymising instruments or services, should be treated by obliged entities as factors of higher risk. Given their potential misuse to obfuscate transactions for illicit purposes, the Commission should assess whether the provision of anonymising instruments and services, such as mixers and tumblers, by crypto-asset service providers for or on behalf of another person should also be subject to a prohibition. Those provisions should not apply to providers of hardware and software or providers of self-hosted wallets to the extent they do not possess access to or control over the crypto-assets of another person.

RemovedRecital 94: (94) The use of large cash payments is highly vulnerable to money laundering and terrorist financing; this has not been sufficiently mitigated by the requirement for traders in goods to be subject to anti-money laundering rules when making or receiving cash payments of EUR 10 000 or more. At the same time, differences in approaches among Member States have undermined the level playing field within the internal market to the detriment of businesses located in Member States with stricter controls. It is therefore necessary to introduce a Union-wide limit to large cash payments of EUR 7000. Member States should be able to adopt lower thresholds and further stricter provisions. The Union-wide limit should not be applicable to payments between natural persons who are not acting in a professional function, except for transactions related to land and real estate, precious metals and stones and other luxury goods, and to payments or deposits made at the premises of credit institutions. In the case of payments or deposits made at the premises of credit institutions, however, the credit institution should report the payment or deposit above the limit to the FIU. Such reporting should not replace reporting in case of suspicious activities and transactions. Unusually large transactions in cash even below the threshold, including the withdrawal, should be subject to enhanced customer due diligence measures in cases of higher risk and, if necessary, to reporting of suspicions.

RemovedRecital 94 a (new): (94a) Technological developments enable merchants to accept payments in crypto-assets for the provision of goods and services either in store or online. Where such payments are not carried out by means of a regulated service providers, the level of traceability to a verified identity might not be sufficient for the purpose of preventing their misuse for money laundering, terrorist financing or predicate offences. The use of such means of payment, in the context of increasing digitalisation, might create a loophole and undermine the effectiveness of the cash limit. While maintaining the possibility to make payments in crypto-assets for goods and services, it is therefore necessary to require merchants to rely on a crypto-asset service provider authorised under MiCA, when accepting payments in crypto-assets. Such limitation should apply to persons trading in goods or providing services and should not be interpreted as a restriction on private transactions by means of self-hosted wallets nor as a restriction to the use of self-hosted wallets in the context of commercial transactions, as long as a crypto-asset service provider is involved.

RemovedRecital 97: (97) In order to ensure consistent application of AML/CFT requirements, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to supplement this Regulation by adopting delegated acts identifying high-risk third countries, third countries with compliance weaknesses and defining harmonised and proportionate enhanced due diligence measures as well as, where relevant, mitigating measures as well as the regulatory technical standards setting out the minimum requirements of group-wide policies, controls and procedures and the conditions under which structures which share common ownership, management or compliance controls are required to apply group-wide policies, controls and procedures, the actions to be taken by groups when the laws of third countries do not permit the application of group-wide policies, controls and procedures and supervisory measures, the sectors and transactions subject to lower thresholds for the performance of customer due diligence and the information necessary for the performance of customer due diligence, as well as specific rules and criteria to identify the beneficial owner or owners of legal entities other than corporate entities. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in …

RemovedArticle 1 – paragraph 1 – point a a (new): (aa) the measures to be applied by obliged entities to mitigate and manage the risks of non-implementation and evasion of targeted financial sanctions;

RemovedArticle 1 – paragraph 1 – point a b (new): (ab) the measures to prevent money laundering and terrorist financing in Member States which allow for citizenship or residence rights in exchange for any kind of investment, including capital transfers, purchase or renting of property, investment in government bonds, investment in corporate entities, donation or endowment of an activity contributing to the public good and contributions to the state budget;

RemovedArticle 1 – paragraph 1 – point c: (c) measures to mitigate risks deriving from anonymous instruments and limit the misuse of bearer instruments.

RemovedArticle 2 – paragraph 1 – point 4: (4) ‘funds’ or ‘property’ means property as defined in Article 2(2) of Directive (EU) 2018/1673;

RemovedArticle 2 – paragraph 1 – point 6 – point a: (a) an undertaking other than a credit institution or an investment firm, which carries out one or more of the activities listed in points (2) to (12), (14) and (15) of Annex I to Directive 2013/36/EU of the European Parliament and of the Council43, including the activities of currency exchange offices (bureaux de change) and activities of creditors as defined in Article 4, point (2), of Directive 2014/17/EU of the European Parliament and of the Council, and in Article 3, point (b), of Directive 2008/48/EC of the European Parliament and of the Council, or an undertaking whose principal activity is to acquire holdings, including a financial holding company and a mixed financial holding company, but excluding the activities listed in point (8) of Annex I to Directive (EU) 2015/2366 of the European Parliament and of the Council;

RemovedArticle 2 – paragraph 1 – point 6 – point a a (new): (aa) a central securities depository as defined in Article 2 point (1) of Regulation (EU) No 909/2014 of the European Parliament and of the Council;

RemovedArticle 2 – paragraph 1 – point 6 – point f a (new): (fa) crypto-asset service providers;

RemovedArticle 2 – paragraph 1 – point 6 a (new): (6a) ‘crypto-asset service providers’ means a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/... [please insert reference – proposal for a Regulation on Markets in Crypto-assets, and amending Directive (EU) 2019/1937 - COM/2020/593 final] where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation, with the exception of providing advice on crypto-assets as referred to in Article 3(1), point (16) (h) of that Regulation;

RemovedArticle 2 – paragraph 1 – point 6 b (new): (6b) 'bearer share’ means a negotiable instrument that accords ownership in a legal person to the person who possesses the bearer share certificate, or any other similar instrument which does not allow the identification or traceability of the ownership of the share; however, it does not refer to dematerialised or registered forms of share certificates whose owners are traceable and identifiable;

Removed<

RemovedArticle 2 – paragraph 1 – point 6 c (new): (6c) ‘bearer share warrant’ means a negotiable instrument that accords entitlement to ownership in a legal person who possesses the bearer share warrant, or any other similar warrant or instrument which does not allow the identification or traceability of the ownership of the share; however, it does not refer to dematerialised or registered warrants or other instruments whose owners are traceable and identifiable, or to any other instrument that only confers a right to subscribe for ownership in a legal person at specified conditions, but not ownership or entitlement to ownership, unless and until the instruments are exercised;

RemovedArticle 2 – paragraph 1 – point 7 – point b: (b) acting as, or arranging for another person to act as, a director or secretary of a company, namely as a nominee, a partner of a partnership, a president of a management board or a similar position in relation to other legal persons;

RemovedArticle 2 – paragraph 1 – point 7 a (new): (7a) ‘wealth or asset manager’ means a natural or legal person that, by way of that person’s business, provides services and offers products designed to grow, protect, utilise and disseminate the wealth of third parties;

RemovedArticle 2 – paragraph 1 – point 8: (8) ‘gambling services’ means a service which involves wagering a stake with monetary value, inter alia in the form of chargeable communications, in games of chance, including those with an element of skill such as lotteries, casino games, poker games and betting transactions that are provided at a physical location, or by any means at a distance, by electronic means or any other technology for facilitating communication, and at the individual request of a recipient of services;

RemovedArticle 2 – paragraph 1 – point 14: deleted

RemovedArticle 2 – paragraph 1 – point 14 a (new): (14a) ‘high-level professional football club’ means a legal entity established in a Member State which owns or manages a professional football club of which at least one team plays in the championship or championships of the two highest level of competition in that Member State and has an annual turnover of at least EUR 7 000 000;

RemovedArticle 2 – paragraph 1 – point 14 b (new): (14b) ‘sports agent in the football sector’ means a natural person who provides private job placements in the football sector for prospective paid football players or for employers with a view to signing employment contracts for paid football players;

RemovedArticle 2 – paragraph 1 – point 15 a (new): (15a) 'precious metals' means gold, silver, platinium, iridium, osmium, palladium, rhodium and rhutenium;

RemovedArticle 2 – paragraph 1 – point 15 b (new): (15b) ‘precious stones’ means diamonds, rubies, sapphires and emeralds;

RemovedArticle 2 – paragraph 1 – point 16: (16) business relationship’ means a business, professional or commercial relationship which is directly connected with the professional activities of an obliged entity and which is expected, at the time when the contact is established, to have an element of duration, including a relationship where an obliged entity is asked to form a company or set up a trust for its customer, whether or not the formation of the company or setting up of the trust is the only transaction carried out for that customer; or in the case of real estate transactions, a relationship where an obliged entity other than a credit or financial institution is provided with services which involve the sale or brokerage of more than one property over a period of time;

RemovedArticle 2 – paragraph 1 – point 16 a (new): (16a) ‘occasional transaction’ means a transaction that is not carried out as part of a business relationship;

RemovedArticle 2 – paragraph 1 – point 16 b (new): (16b) 'atypical transaction or fact' means a transaction or a fact which does not appear to be consistent with the customer's characteristics and with the purpose and intended nature of the business relationship or the proposed transaction;

RemovedArticle 2 – paragraph 1 – point 19 – point b: (b) the relationships between and among credit institutions and financial institutions including where similar services are provided by a correspondent institution to a respondent institution, and including relationships established for securities transactions or funds transfers or relationships established for transactions in crypto-assets or transfers of crypto-asset;

RemovedArticle 2 – paragraph 1 – point 20 a (new): (20a) 'unregistered or unlicenced entity providing crypto-asset services’ means an entity which provides crypto-asset services and that is not established in any jurisdiction within the Union or does not have a central contact point or substantive management presence in any jurisdiction within the Union;

RemovedArticle 2 – paragraph 1 – point 22: (22) ‘beneficial owner’ means any natural person who ultimately owns or controls a legal entity or an express trust or similar legal arrangement, or an organisation that has legal capacity under national law, as well as any natural person on whose behalf or for the benefit of whom a transaction or activity or business relationship is being conducted;

RemovedArticle 2 – paragraph 1 – point 24: (24) ‘formal nominee arrangement’ means a contract or a formal equivalent arrangement with an equivalent legal value to a contract, between the nominee and the nominator, where the nominator is a legal entity or natural person that issues instructions to a nominee to act on their behalf in a certain capacity, including as a director or shareholder, and the nominee is a legal entity or natural person instructed by the nominator to act on their behalf;

RemovedArticle 2 – paragraph 1 – point 25 – introductory part: (25) ‘politically exposed person’ means a natural person who is or has been entrusted with prominent public functions including:

RemovedArticle 2 – paragraph 1 – point 25 – point a – point vii a (new): (viia) heads of regional and local authorities including groupings of municipalities and metropolitan regions of at least 30.000 inhabitants;

RemovedArticle 2 – paragraph 1 – point 25 – point d – point i a (new): (ia) other prominent public functions as defined by Member States;

RemovedArticle 2 – paragraph 1 – point 26 – point c: (c) the parents and the siblings

RemovedArticle 2 – paragraph 1 – point 27 – point a (new): (a) ‘high-net-worth customer’ means a customer who is a natural person or the beneficial owner of a legal entity that holds in total a minimum of EUR 1 000 000 in financial or investable wealth or assets, excluding that person’s main private residence, in accordance with this Regulation;

RemovedArticle 2 – paragraph 1 – point 29 – point a (new): a) a parent undertaking of a group, other than that mentioned in point a), which is subject to prudential supervision on a consolidated basis, at the highest level of prudential consolidation in the Union, including a 'financial holding company' as defined in Article 4(1), point (20), of Regulation (EU) No 575/2013 and an ‘insurance holding company’ as defined in Article 212(1), point (f), of Directive 2009/138/EC;

RemovedArticle 2 – paragraph 1 – point 29 a (new): (29a) ‘parent undertaking’ means : / (a) a parent undertaking of a financial conglomerate, including a 'mixed financial holding company' as defined in Article 2, point (15), of Directive 2002/87/CE of the European Parliament and of the Council; / (b) a parent undertaking of a group which is subject to prudential supervision on a consolidated basis, at the highest level of prudential consolidation in the Union, including a 'financial holding company' as defined in Article 4(1), point (20), of Regulation (EU) No 575/2013 and an ‘insurance holding company’ as defined in Article 212(1), point (f), of Directive 2009/138/EC; / (c) a parent undertaking of a group which includes at least two obliged entities as defined in Article 3 of this Regulation, and which is not itself a subsidiary of another undertaking in the Union; / however where several parent undertakings are identified within the same group, in accordance with points (a), (b) and (c), the parent undertaking is the entity within the group which is not a subsidiary of another undertaking in the Union.

RemovedArticle 2 – paragraph 1 – point 31 – point d: (d) a public authority with designated responsibilities for preventing and combating money laundering or terrorist financing;

RemovedArticle 3 – paragraph 1 – point 3 – point a: (a) auditors, external accountants, and tax advisors, and any other natural or legal person that undertakes to provide, directly or by means of other persons to which that other person is related, material aid, assistance or advice on tax, investment or personal finance matters as principal business or professional activity;

RemovedArticle 3 – paragraph 1 – point 3 – point a a (new): (aa) certified debt collectors, wealth or asset managers;