Changes from plenary report to adopted text

RemovedArticle 26 – paragraph 3: 3. In issuing and reviewing the guidelines referred to in paragraph 1, AMLA shall take into account evaluations, assessments or reports of Union institutions, bodies and agencies, and competent authorities, international organisations and standard setters with competence in the field of preventing money laundering and combating terrorist financing

RemovedArticle 27 – paragraph 1 – point a: (a) verify the identity of the customer and the beneficial owner after the establishment of the business relationship, provided that the specific lower risk identified, in the business-wide risk assessment and the customer risk assessment, justified such postponement but in any case no later than 60 days of the relationship being established.

RemovedArticle 27 – paragraph 1 – subparagraph 1: The measures referred to in the first subparagraph shall be proportionate to the nature, type of activity and size of the business and to the specific elements of lower risk identified. However, obliged entities shall carry out sufficient monitoring of the transactions and business relationship to enable the detection of unusual or suspicious transactions.

RemovedArticle 27 – paragraph 4: 4. Obliged entities shall verify on a regular basis that the conditions for the application of simplified due diligence continue to exist. The frequency of such verifications shall be commensurate to the nature, type of activity and size of the business and the risks posed by the specific relationship

RemovedArticle 27 – paragraph 5 – point d a (new): (da) the customer, or the beneficial owner is subjected to targeted financial sanctions or

RemovedArticle 27 – paragraph 5 – point d b (new): (db) the customer is a family members or a person known to be a their close associates of persons subject to targeted financial sanctions.

RemovedArticle 28 – paragraph 1: 1. In the cases referred to in Articles 23, 24, 25 and 30 to 36b as well as in other cases of higher risk that are identified by obliged entities pursuant to Article 16(2), second subparagraph (‘cases of higher risk’), obliged entities shall apply enhanced customer due diligence measures to manage and mitigate those risks appropriately.

RemovedArticle 28 – paragraph 2 – introductory part: 2. Obliged entities shall examine the origin and destination of funds involved in, and the purpose of, all transactions that are atypical and may fulfil at least one of the following conditions:

RemovedArticle 28 – paragraph 4 – introductory part: 4. With the exception of the cases covered by Section 2 of this Chapter, in cases of higher risk, obliged entities may shall apply at least one of the following enhanced customer due diligence measures, proportionate to the higher risks identified:

RemovedArticle 28 – paragraph 5 – subparagraph 1: Where the risks identified by the Member States pursuant to the first subparagraph are likely to affect the financial system of the Union, AMLA shall, upon a request from the Commission or on its own initiative, consider updating the guidelines adopted pursuant to Article 26 or, where appropriate, issue draft regulatory technical standards to impose enhanced due diligence requirements upon obliged entities uniformly within the Union and submit them to the Commission for adoption.

RemovedArticle 28 – paragraph 5 a (new): 5a. The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in paragraph 5 of this Article in accordance with Articles 38 to 41 of Regulation [please insert reference – proposal for establishment of an Anti-Money Laundering Authority - COM/2021/421 final].

RemovedArticle 28 – paragraph 6: deleted

RemovedArticle 29 – paragraph 1 – introductory part: For the purposes of Articles 23 and 25, the Commission shall choose from among the following countermeasures:

RemovedArticle 29 – paragraph 1 a (new): 1a. In addition to the countermeasures chosen under paragraph 1, Member States shall not grant residence status to nationals of countries referred to in Article 23, 24 and 25 on the basis of national schemes that grant citizenship or residence rights in exchange for any kind of investments, 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 30 a (new): Article 30a / Specific enhanced due diligence measures for correspondent cross-border relationships with non-Union entities providing crypto-asset services / 1. With respect to correspondent cross-border relationships involving the provision of crypto-asset services as defined in Article 3(16) of Regulation (EU) .../... [MiCA] with a respondent entity not established in the Union and providing similar services, including transfers of crypto-assets, crypto-asset service providers shall, in addition to the customer due diligence measures laid down in Article 16, be required when entering into a business relationship, to: / (a) determine that the respondent entity is registered or licenced under the law of a third country; / (b) gather sufficient information about the correspondent entity to understand fully the nature of the respondent institution’s business and to determine from publicly available information the reputational risk of the entity and the quality of supervision; / (c) assess the respondent entity’s AML/CFT controls; / (d) obtain approval from senior management before establishing the correspondent relationship; / (e) document the respective responsibilities of each party to the correspondent relationship; / (f) with respect to payable-through crypto-asset accounts, be satisfied that the respondent entity has verified the identity of, and performed ongoing due diligence on, the customers having direct access to accounts of the correspondent entity, and that it is …

RemovedArticle 30 b (new): Article 30b / Specific enhanced due diligence regarding crypto-assets transactions involving a self-hosted address / 1. In addition to the customer due diligence measures laid down in Article 16, and without prejudice to the measures required by Regulation (EU) .../... [please insert reference – proposal for a recast of Regulation (EU) 2015/847 - COM/2021/422 final], crypto-asset service providers shall have in place appropriate risk management systems, including risk-based procedures, to identify and assess the risk of money laundering and terrorist financing as well as the risk of non-implementation or evasion of targeted financial sanctions associated with crypto-assets transactions directed to or originating from a self-hosted address. / 2. With respect to the transactions referred to in paragraph 1, crypto-asset service providers shall apply mitigating measures commensurate with the risks identified. Those measures shall include: / (a) taking risk-based measures to verify through suitable technical means whether the self-hosted address is owned or controlled by their customers; / (b) taking risk-based measures to identify, and verify the identity of the person who owns or controls or benefits from a self-hosted address, to the extent possible outside the framework of a customer relationship, including through reliance on third party verification; / (c) requiring additional information on the origin and destination of the crypto- assets, in accordance with a risk based ap…

RemovedArticle 31 a (new): Article 31a / Prohibition of correspondent relationships with unregistered or unlicensed entities providing crypto asset services / Credit and financial institutions shall not enter into or continue a correspondent relationships with unregistered or unlicensed entities providing crypto-asset services. Credit and financial institutions shall take appropriate measures to ensure that they do not engage in or continue correspondent relationships with an entity that is known to allow its accounts or distributed ledger addresses to be used by an unregistered or unlicensed entity providing crypto-asset services.

RemovedArticle 31 b (new): Article 31b / Public register on shell banks and unregistered and unlicensed entities providing crypto-asset services / 1. Where competent authorities, supervisors or obliged entities become aware of shell banks and unregistered and unlicensed crypto-asset service providers operating within or outside the Union, they shall inform AMLA. / 2. AMLA shall establish and maintain an indicative and non-exhaustive public register of shell banks and unregistered and unlicensed entities providing crypto-asset services based on information which may be provided by competent authorities, supervisors, obliged entities and any additional information at its disposal. That register shall be publicly available in machine-readable format. / 3. AMLA shall update the register referred to in paragraph 2 on a regular basis, taking into account any changes in circumstances concerning the entities included in the list or any relevant information that has been brought to its attention.

RemovedArticle 31 c (new): Article 31c / Specific provisions regarding applicants for citizenship and residence by investment schemes / In addition to the customer due diligence measures laid down in Article 16, with respect to customers who are third-country nationals who apply for residence rights in a Member State in exchange for any kind of investment, including 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, obliged entities shall, as a minimum, carry out enhanced customer due diligence measures as set out in Article 28(4), points (a) (c ) (e) and (f).

RemovedArticle 32 – paragraph 2 – point b: (b) take adequate measures to establish the source of wealth and source of funds that are involved in business relationships or occasional transactions with politically exposed persons;

RemovedArticle 32 – paragraph 3 – introductory part: 3. By … [two years from the date of entry into force of this Regulation], AMLA shall issue guidelines on the following matters:

RemovedArticle 35 – paragraph 2: 2. Obliged entities shall apply one or more of the measures referred to in Article 28(4) to mitigate the risks posed by the business relationship. Obliged entities shall apply those measures in a manner proportionate to the risks identified until such time as that person is deemed to pose no further risk, but in any case for not less than 24 months following the time when the individual is no longer entrusted with a prominent public function.

RemovedArticle 36 a (new): Article 36a / Specific provisions regarding certain high-net-worth customers / 1. In addition to the customer due diligence measures laid down in Article 16, obliged entities shall have in place appropriate risk management systems, including risk-based procedures, to determine whether the customer or the beneficial owner of the customer is a high risk high-net-worth individual. / 2. A customer whose wealth derives from the extractive industry, or from reported links with politically exposed persons, or from the exploitation of monopolies in third countries identified by credible sources or acknowledged processes as having significant levels of corruption or other criminal activity shall be considered to be a high-risk high-net-worth individual where: / a) obliged entities other than those referred to in Article 3 (3) (b): / i) have a business relationship with that customer that exceeds EUR 1 000 0000, calculated on the basis of the customer’s financial or investable wealth or assets either under management by the obliged entity or relating to which the obliged entity offers material aid, assistance or advice, excluding the customer’s main private residence, regardless of whether that amount is reached at the time of establishment of the business relationship or after in the course of one year; or / ii) perform an occasional transaction, or offer material aid, assistance or advice relating to an occasional transaction for that customer that exceeds EUR 1 000 0000; b) obliged …

RemovedArticle 36 b (new): Article 36b / Specific provisions regarding offshore financial centres / 1. In addition to the customer due diligence measures laid down in Article 16 and without prejudice to any stricter measures applicable under Section 2, obliged entities shall have in place appropriate risk management systems, including risk-based procedures, to determine whether the customer or the beneficial owner of the customer is a legal entity established or having a substantial link with an a jurisdiction designated by AMLA as an offshore financial centre. / 2. With respect to transactions or business relationships with legal entities companies established or having a substantial link with an offshore financial centre, obliged entities shall apply the following measures, on a risk sensitive basis: / (a) gather sufficient information about the legal entity to understand fully the nature of the business of that entity; / (b) obtain senior management approval for establishing or continuing business relationships with that legal entity; / (c) take adequate measures to establish the source of funds that are involved in business relationships or transactions with the legal entity; / (d) conduct enhanced, ongoing monitoring of those business relationships. / 3. AMLA shall develop draft regulatory technical standards to specify what constitutes a substantial link as referred to in paragraph 1 and further specify the criteria for the identification of offshore financial centres as defined in Article 2, tak…

RemovedArticle 36 c (new): Article 36c / Persons subject to restrictive measures by international organisations / 1. Obliged entities shall report to the FIUs where they detect any business relationship or occasional transaction with persons subject to UN sanctions as referred in Annex III point (1) (d) in the temporary period between the moment the UN designation is made publicly available and the moment targeted financial sanctions adopted by the Union become applicable. / In the circumstances referred to in the first subparagraph, obliged entities shall refrain from carrying out any transaction related to a person subject to UN sanctions until they have notified the FIU and have complied with any further specific instruction from the FIU. / 2. When the FIU receives a notification as referred to in paragraph 1 of this Article, it may decide to suspend any transaction or account in accordance with Article 20 of Directive [insert reference to AMLD6] / 3. This Article is without prejudice to the possibility of Member States to apply temporary measures that ensure a higher level of protection of the financial system of the Union, such as temporary measures applying UN designations directly pending the adoption by the Union of targeted financial sanctions.

RemovedArticle 37 a (new): Article 37a / Monitoring of transactions with regard to risks posed by targeted financial sanctions / 1. Without prejudice to other measures required by Union law relating to targeted financial sanctions, credit and financial institutions shall screen the information accompanying a transfer of funds or crypto-assets pursuant to [please insert reference – Regulation on information accompanying transfers of funds and certain crypto-assets (Recast)] in order to assess whether the payee or the payer of a funds transfer, or the originator or the beneficiary of a transfer of crypto-assets, are subject to targeted financial sanctions. / By … [two years after the entry into force of this Regulation] AMLA shall develop draft regulatory technical standards and submit them to the Commission for adoption. / Those draft regulatory technical standards shall specify: / (a) which information shall be screened by the credit or financial institution of the payer as well as the relevant obligations of this institution; / (b) which information shall be screened by the credit or financial institution of the payee as well the relevant obligations of this institution; / The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in this Article in accordance with Articles 38 to 41 of Regulation [please insert reference – proposal for establishment of an Anti-Money Laundering Authority - COM/2021/421 final].

RemovedArticle 38 – paragraph 1 – introductory part: 1. Obliged entities may rely on other obliged entities, whether situated in a Member State or in a third country, to meet the customer due diligence requirements laid down in Article 16(1), points (a), (b), (c) and (d), and Article 21 (2) and (3), provided that:

RemovedArticle 38 – paragraph 4: 4. Obliged entities shall not rely on obliged entities established in third countries identified pursuant to Section 2 of this Chapter.

RemovedArticle 38 – paragraph 4 a (new): 4a. Reliance on other obliged entities may also include the re-use of relevant customer due diligence information and documentation obtained and processed by that entity.

RemovedArticle 40 – paragraph 1 – introductory part: 1. Obliged entities may outsource tasks deriving from requirements under this Regulation for the purpose of performing customer due diligence to an agent or external service provider. Such tasks can be outsourced to a natural or legal person, with the exception of natural or legal persons residing or established in third countries identified pursuant to Section 2 of this Chapter.

RemovedArticle 40 – paragraph 2 – point c: (c) approval of the obliged entity’s policies, controls and procedures to comply with the requirements of this Regulation;

RemovedArticle 40 – paragraph 2 – point d: (d) the decision to enter into a business relationship with a client based on the attribution of a risk profile;

RemovedArticle 40 – paragraph 2 – point e: (e) the approval of criteria for the detection of suspicious or unusual transactions and activities;

RemovedArticle 40 – paragraph 2 – point f: (f) the reporting of suspicious activities or threshold-based declarations to the FIU pursuant to Article 50, unless such activities are outsourced to a service provider belonging to the same group as the obliged entity and which is established in the same Member State as the obliged entity.

RemovedArticle 40 – paragraph 3: 3. Where an obliged entity outsources a task pursuant to paragraph 1, it shall ensure that the agent or external service provider applies the measures and procedures adopted by the obliged entity. The conditions for the performance of such tasks shall be clearly specified and laid down in a written agreement between the obliged entity and the outsourced entity. The obliged entity shall perform regular controls to ascertain the effective implementation of such measures and procedures by the outsourced entity. The frequency of such controls shall be determined on the basis of the critical nature of the tasks outsourced. The obligation to lay down in a written agreement the conditions for the performance of customer due diligence tasks by the outsourced entity shall be without prejudice to any obligation of the obliged entity under Regulation (EU) 2016/679. Any subsequent outsourcing of tasks by the outsourced entity to other third party service providers shall be foreseen in the written agreement with the obliged entity, provided that the outsourced entity maintains full responsibility for applying the measures and procedures agreed with the obliged entity.

RemovedArticle 40 – paragraph 3 a (new): 3a. Where an obliged entity outsources a task pursuant to paragraph 1 which requires the consultation of beneficial ownership registers referred to in Article 10 of Directive [insert reference to AMLD6] and in accordance with the rules laid down in Article 11 of Directive [insert reference to AMLD6], the obliged entity shall notify the respective supervisor of the outsourcing agreement.

RemovedArticle 41 – paragraph 1 – introductory part: By [3 years after the entry into force of this Regulation], AMLA, in cooperation with the ESAs, shall issue guidelines addressed to obliged entities on:

RemovedArticle 41 a (new): Article 41a / Unwarranted de-risking, non-discrimination and financial inclusion / 1. Credit and financial institutions shall have in place controls and procedures to ensure that and in the application of customer due diligence requirements provided under this Chapter does not result in the unwarranted refusal, or termination, of business relationships with entire categories of customers and that obliged entities comply with Article 15 and Article 16(2) of Directive 2014/92/EU. The internal policies, controls and procedures of credit and financial institutions shall include options for mitigating the risks of money laundering and terrorist financing that obliged entities will consider applying before deciding to reject a customer on the grounds of a risk of money laundering or terrorist financing. / The internal policies and procedures of credit and financial institutions shall include options and criteria to adjust the features of products or services offered to a given customer on an individual and risk-sensitive basis and, where applicable, in accordance with the level of services offered under Directive 2014/92/EU. / 2. Without prejudice to paragraph 1, credit and financial institutions shall have in place internal policies, controls and procedures to ensure that the application of customer due diligence requirements provided under this Chapter does not result in the undue exclusion of non-profit organisations and their representatives and associates from access to financ…

RemovedArticle 42 – paragraph 1 – introductory part: 1. In case of corporate and other legal entities regardless of form or structure, the beneficial owner(s) as defined in Article 2(22) shall be the natural person(s) who owns, or control(s), directly or indirectly, the corporate or other legal entity, either through an ownership interest or through control via other means.

RemovedArticle 42 – paragraph 1 – subparagraph 1: For the purpose of this Article an ownership interest’ shall mean an ownership of 15 % plus one of the shares or voting rights or other direct or indirect ownership interest in the corporate entity, including through bearer shareholdings, on every level of ownership. / In assessing whether there is an ownership interest in the corporate entity, shareholdings on every level of ownership shall be taken into account. Indirect ownership shall be calculated by multiplying the shares or voting rights or other ownership interests held by the intermediate entities in the chain and by adding together the results from the various chains. / For the purpose of this Article, ‘control of the corporate or legal entity’ means the possibility to exercise, directly or indirectly, significant influence and impose relevant decisions within the corporate or legal entity. The ‘indirect control of the corporate or legal entity’ means control of intermediate entities in the chain or in various chains of the structure, where the direct control is identified on each level of the structure, insofar the control over intermediate entities allows for a natural person to control the legal entity.

RemovedArticle 42 – paragraph 1 – subparagraph 2 – introductory part: For the purpose of this Article, ‘control of the corporate or legal entity’ including control via other means’ includes at least one of the following:

RemovedArticle 42 – paragraph 1 – subparagraph 2 – point b: (b) the exercise of dominant influence over the decisions taken by the corporate entity, including veto rights, decision rights and any decisions regarding profit distributions or leading to a shift in assets;

RemovedArticle 42 – paragraph 1 – subparagraph 2 – point d: (d) control through informal means, such as close personal connections with relatives or associates of managers or directors/those owning or controlling the corporate entity;

RemovedArticle 42 – paragraph 1 – subparagraph 2 – point e: (e) use of formal or informal nominee arrangements, including powers to manage or dispose of the corporate entity’s assets or income, in particular its bank or financial accounts;

RemovedArticle 42 – paragraph 1 – subparagraph 2 – point e a (new): (ea) control through debt instruments or other financing arrangements.

RemovedArticle 42 – paragraph 3: 3. Member States shall notify to the Commission by … [3 months from the date of application of this Regulation] a list of the types of corporate and other legal entities existing under their national laws with beneficial owner(s) identified in accordance with paragraph 1. The notification shall include the specific categories of entities, description of characteristics, names and, where applicable, legal basis under the national laws of the Member States. It shall also include an indication of whether, due to the specific form and structures of legal entities other than corporate entities, the mechanism under Article 45(3) applies, accompanied by a detailed justification of the reasons for that. In that notification, Member States shall also include other legal entities or vehicles to which, under national law, identification of beneficial ownership information is not deemed applicable, in particular if that is the case for investment vehicles such as special purpose vehicles or entities, protected cell companies or series limited liability companies.

RemovedArticle 42 – paragraph 4: 4. The Commission shall determine the specific rules and criteria to identify the beneficial owner(s) of legal entities other than corporate entities through the adoption of a delegated act by … [six months from the date of application of this Regulation].

RemovedArticle 42 – paragraph 5 – point a: (a) companies listed on a regulated market that is subject to disclosure requirements consistent with Union legislation or subject to equivalent international standards, except for undertakings active in the extractive industry as defined in Article 41 (1) of Directive 2013/34;

RemovedArticle 42 – paragraph 5 a (new): 5a. By way of derogation from paragraph 1 of this Article, an ownership interest shall mean an ownership of 5 % plus one share or voting right or other ownership interest in the corporate entity, for the following legal entities: / i) undertakings active in the extractive industry as defined in Article 41 (1) of Directive 2013/34; / ii) legal entities that are exposed to a higher risk of money laundering and terrorist financing as identified by the Commission in accordance with paragraph 5b.

RemovedArticle 42 – paragraph 5 b (new): 5b. By … [three months from the date of application of this Regulation], Member States shall provide the Commission with a list of all categories of corporate and other legal entities existing in their territory. / The Commission shall be empowered to identify, by means of delegated acts, the categories of legal entities or sectors that are associated with higher risk of money laundering and terrorist financing and its predicate offences for which a threshold of 5% shall be an ownership interest. / For the purpose of the first subparagraph, the Commission shall consult AMLA and take into account the national risk assessment carried out in accordance with Article 8 of Directive and any additional information provided by the Member States. [please insert reference – proposal for 6th Anti-Money Laundering Directive - COM/2021/423 final]. / In order to identify the categories of legal entities or sectors of higher risk in accordance with this paragraph, the Commission shall, where relevant, consult experts from the private sector, civil society and academia. The Commission shall review the delegated acts on a regular basis to ensure that the categories of corporate entities identified as associated with higher risks are correct, and that the lower thresholds imposed are proportionate and adequate to the risks identified.

RemovedArticle 43 – paragraph 1 – point a: (a) the economic and legal settlor(s);

RemovedArticle 43 – paragraph 2 – introductory part: 2. In the case of legal entities and legal arrangements similar to express trusts, the beneficial owners shall be the natural persons holding equivalent or similar positions to those referred to under paragraph 1. In the event that the parties of the express trust laid down in paragraph 1, point (a), (b), (c), or (d) are corporate or legal entities or arrangements themselves, the beneficial owner shall be the natural person who owns, directly or indirectly, those entities or arrangements, through an ownership of at least one share or voting right or other ownership interest in the corporate entity or the ultimate natural persons who exercise control through a chain of control or ownership of corporate or legal entities or arrangements or through control via other means.

RemovedArticle 44 – paragraph 1 – point a: (a) the first name and surname, full place and date of birth, residential address, country of residence and nationality or nationalities of the beneficial owner, national identification number and source of it, such as passport or national identity document,

RemovedArticle 44 – paragraph 2: 2. The entities referred to in Articles 42 and 43 shall obtain adequate, accurate, and current beneficial ownership information within 21 calendar days from their creation. It shall be updated promptly, and in any case no later than 21 calendar days following any change of the beneficial owner(s), and on an annual basis.

RemovedArticle 45 – paragraph 1 – subparagraph 2: The beneficial owner(s) of corporate or other legal entities shall provide those entities with all the information necessary for the corporate or other legal entity and shall inform obliged entities without undue delay about all changes relating to beneficial ownership.

RemovedArticle 45 – paragraph 2: 2. Where, after having exhausted all possible means of identification pursuant to Articles 42 and 43, no person is identified as beneficial owner, or where there is any doubt that the person(s) identified is the beneficial owner(s), the corporate or other legal entities shall keep records of the actions taken in order to identify their beneficial owner(s) and hold additional information available on a risk-sensitive basis, and promptly provide it to competent authorities where required, including resolutions of the board of directors and minutes of their meetings, partnership agreements, trust deeds, informal arrangements determining powers equivalent to powers of attorney or other contractual agreements and documentation.

RemovedArticle 45 – paragraph 3 – introductory part: 3. In the cases referred to in paragraph 2, when providing beneficial ownership information in accordance with Article 16 of this Regulation and Article 10 of Directive [please insert reference – proposal for 6th Anti-Money Laundering Directive - COM/2021/423 final], corporate or other legal entities shall provide the following information, which shall be clearly stated in the register referred to in Article 10 of Directive [please insert reference – proposal for 6th Anti-Money Laundering Directive - COM/2021/423 final]:

RemovedArticle 46 – title: Trustees obligations relating to the identification of beneficial owners of express trusts or similar legal arrangements

RemovedArticle 46 – paragraph 4 a (new): 4a. Where the trustee or person holding an equivalent position in a similar legal arrangement is not established or resides in the Union, beneficial ownership information shall be obtained and held in the conditions laid down in paragraph 1 by the settlor, provided that: / 1) the express trust or legal arrangement is governed under the law of one Member State; or / 2) either the settlor, the protector or the beneficiary are residents in one Member State.

RemovedArticle 47 – title: Measures to mitigate risks relating to nominee shareholders and nominee directors