Powers and resources of national supervisors
1. Each Member State shall ensure that all obliged entities established in its territory, except for the circumstances covered in Article 38, are subject to adequate and effective supervision. To that end, each Member State shall appoint one or more supervisors to monitor effectively, and to take the measures necessary to ensure compliance by the obliged entities with Regulations (EU) 2024/1624 and (EU) 2023/1113.
Where, for reasons of overriding general interest, Member States have introduced specific authorisations requirements for obliged entities to operate in their territory under the freedom to provide services, they shall ensure that the activities carried out by the obliged entities under those specific authorisations are subject to supervision by their national supervisors, regardless of whether the authorised activities are carried out through an infrastructure in their territory or remotely. Member States shall also ensure that supervision under this subparagraph is notified to the supervisors of the Member State where the head office of the obliged entity is located.
This paragraph shall not apply when AMLA acts as a supervisor.
2. Member States shall ensure that supervisors have adequate financial, human and technical resources to perform their tasks as listed in paragraph 5. Member States shall ensure that staff of those authorities are of high integrity and appropriately skilled, and maintain high professional standards, including standards of confidentiality, data protection and standards addressing conflicts of interest.
3. In the case of the obliged entities referred to in Article 3, points (3)(a) and (b), of Regulation (EU) 2024/1624, Member States may allow the function referred to in paragraph 1 of this Article to be performed by self-regulatory bodies, provided that those self-regulatory bodies have the powers referred to in paragraph 6 of this Article and have adequate financial, human and technical resources to perform their functions. Member States shall ensure that staff of those bodies are of high integrity and appropriately skilled, and that they maintain high professional standards, including standards of confidentiality, data protection and standards addressing conflicts of interest.
4. Where a Member State has entrusted the supervision of a category of obliged entities to more than one supervisor, it shall ensure that those supervisors supervise obliged entities in a consistent and efficient manner across the sector. To that end, the Member State shall appoint a leading supervisor or establish a coordination mechanism among those supervisors.
Where a Member State has entrusted the supervision of all obliged entities to more than one supervisor, it shall establish a coordination mechanism among those supervisors to ensure that obliged entities are effectively supervised to the highest standards. Such a coordination mechanism shall include all supervisors, except where:
(a)
supervision is entrusted to a self-regulatory body, in which case the public authority referred to in Article 52 shall participate in the coordination mechanism;
(b)
supervision of a category of obliged entities is entrusted to several supervisors, in which case the lead supervisor shall participate in the coordination mechanism; where no lead supervisor has been appointed, supervisors shall designate a representative among them.
5. For the purposes of paragraph 1, Member States shall ensure that the national supervisors perform the following tasks:
(a)
to disseminate relevant information to obliged entities pursuant to Article 39;
(b)
to decide on those cases where the specific risks inherent in a sector are clear and understood and individual documented risk assessments pursuant to Article 10 of Regulation (EU) 2024/1624 are not required;
(c)
to verify the adequacy and implementation of the internal policies, procedures and controls of obliged entities pursuant to Chapter II of Regulation (EU) 2024/1624 and of the human resources allocated to the performance of the tasks required under that Regulation, as well as, for supervisors of collective investment undertakings, to decide on those cases where the collective investment undertaking may outsource the reporting of suspicious activities pursuant to Article 18(7) of Regulation (EU) 2024/1624 to a service provider;
(d)
to regularly assess and monitor the money laundering and terrorist financing risks as well as the risks of non-implementation and evasion of targeted financial sanctions the obliged entities are exposed to;
(e)
to monitor compliance by obliged entities with regard to their obligations in relation to targeted financial sanctions;
(f)
to conduct all the necessary off-site investigations, on-site inspections and thematic checks and any other inquiries, assessments and analyses necessary to verify that obliged entities comply with Regulation (EU) 2024/1624, and with any administrative measures taken pursuant to Article 56 of this Directive;
(g)
to take appropriate supervisory measures to address any breaches of applicable requirements by the obliged entities identified in the process of supervisory assessments and follow up on the implementation of such measures.
6. Member States shall ensure that supervisors have adequate powers to perform their tasks as provided for in paragraph 5, including the power to:
(a)
compel the production of any information from obliged entities which is relevant for monitoring and verifying compliance with Regulation (EU) 2024/1624 or Regulation (EU) 2023/1113 and to perform checks, including from service providers to whom the obliged entity has outsourced part of its tasks to meet the requirements of those Regulations;
(b)
apply appropriate and proportionate administrative measures to remedy the situation in the case of breaches, including through the imposition of pecuniary sanctions in accordance with Section 4 of this Chapter.
7. Member States shall ensure that financial supervisors and supervisors in charge of gambling service providers have powers additional to those referred to in paragraph 6, including the power to inspect the business premises of the obliged entity without prior announcement where the proper conduct and efficiency of an inspection so require, and that they have all the necessary means to carry out such inspection.
For the purposes of the first subparagraph, the supervisors shall at least be able to:
(a)
examine the books and records of the obliged entity and take copies or extracts from such books and records;
(b)
obtain access to any software, databases, IT tools or other electronic means of recording information used by the obliged entity;
(c)
obtain written or oral information from any person responsible for AML/CFT internal policies, procedures and controls or their representatives or staff, as well as any representative or staff of entities to which the obliged entity has outsourced tasks pursuant to Article 18 of Regulation (EU) 2024/1624, and interview any other person who consents to be interviewed for the purpose of collecting information relating to the subject matter of an investigation.
Supervision of forms of infrastructure of certain intermediaries operating under the freedom to provide services
1. Where the activities of the following obliged entities are carried out in their territory under the freedom to provide services through agents or distributors, or through other types of infrastructure, including when those activities are carried out under an authorisation obtained under Directive 2013/36/EU, Member States shall ensure that such activities are subject to supervision by their national supervisors:
(a)
electronic money issuers as defined in Article 2, point (3), of Directive 2009/110/EC of the European Parliament and of the Council ( 42 ) ;
(b)
payment service providers as defined in Article 4, point (11), of Directive (EU) 2015/2366; and
(c)
crypto-asset service providers.
For the purposes of the first subparagraph, the supervisors of the Member State where the activities are carried out shall monitor effectively and ensure compliance with the Regulations (EU) 2024/1624 and (EU) 2023/1113.
2. By way of derogation from paragraph 1, supervision of agents, distributors, or other types of infrastructure, referred to in that paragraph shall be carried out by the supervisor of the Member State where the head office of the obliged entity is located where:
(a)
the criteria set out in the regulatory technical standard referred to in Article 41(2) are not met; and
(b)
the supervisor of the Member State where those agents, distributors, or other types of infrastructure, are located notifies the supervisor of the Member State where the head office of the obliged entity is located that, considering the limited infrastructure of the entity in its territory, supervision of the activities referred to in paragraph 1 is to be carried out by the supervisor of the Member State where the head office of the obliged entity is located.
3. For the purposes of this Article, the supervisor of the Member State where the head office of the obliged entity is located and the supervisor of the Member State where the obliged entity operates under the freedom to provide services through agents or distributors, or through other types of infrastructure, shall provide each other any information necessary to assess whether the criteria referred to in paragraph 2, point (a), are met, including on any change in the circumstances of the obliged entity that may have an impact on the satisfaction of those criteria.
4. Member States shall ensure that the supervisor of the Member State where the head office of the obliged entity is located informs the obliged entity within 2 weeks of receiving the notification under paragraph 2, point (b), that it will supervise the activities of the agents, distributors, or other types of infrastructure, through which the obliged entities operates under the freedom to provide services in another Member State, and of any subsequent change to their supervision.
5. This Article shall not apply when AMLA acts as a supervisor.
Provision of information to obliged entities
1. Member States shall ensure that supervisors make information on money laundering and terrorist financing available to the obliged entities under their supervision.
2. The information referred to in paragraph 1 shall include the following:
(a)
the risk assessment at Union level conducted by the Commission pursuant to Article 7 and any relevant recommendation by the Commission on the basis of that Article;
(b)
national or sectoral risk assessments carried out pursuant to Article 8;
(c)
relevant guidelines, recommendations and opinions issued by AMLA in accordance with Articles 54 and 55 of Regulation (EU) 2024/1620;
(d)
information on third countries identified pursuant to Chapter III, Section 2, of Regulation (EU) 2024/1624;
(e)
any guidance and report produced by AMLA, other supervisors and, where relevant, the public authority overseeing self-regulatory bodies, the FIU or any other competent authority or international organisations and standard setters regarding money laundering and terrorist financing methods which might apply to a sector and indications which may facilitate the identification of transactions or activities at risk of being linked to money laundering and terrorist financing in that sector, as well as guidance on obliged entities’ obligations in relation to targeted financial sanctions.
3. Member States shall ensure that supervisors carry out outreach activities, as appropriate, to inform the obliged entities under their supervision of their obligations.
4. Member States shall ensure that supervisors make information on persons or entities designated in relation to targeted financial sanctions and UN financial sanctions available to the obliged entities under their supervision immediately.
Risk-based supervision
1. Member States shall ensure that supervisors apply a risk-based approach to supervision. To that end, Member States shall ensure that they:
(a)
have a clear understanding of the risks of money laundering and terrorist financing present in their Member State;
(b)
assess all relevant information on the specific domestic and international risks associated with customers, products and services of the obliged entities;
(c)
base the frequency and intensity of on-site, off-site and thematic supervision on the risk profile of obliged entities, and on the risks of money laundering and terrorist financing in that Member State.
For the purposes of point (c) of the first subparagraph of this paragraph, supervisors shall draw up annual supervisory programmes, which shall take into account the timing and resources needed to react promptly in the event of objective and significant indications of breaches of Regulations (EU) 2024/1624 and (EU) 2023/1113.
2. By 10 July 2026, AMLA shall develop draft regulatory technical standards and submit them to the Commission for adoption. Those draft regulatory technical standards shall set out the benchmarks and a methodology for assessing and classifying the inherent and residual risk profile of obliged entities, as well as the frequency at which such risk profile shall be reviewed. Such frequency shall take into account any major events or developments in the management and operations of the obliged entity, as well as the nature and size of the business.
Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 49 to 52 of Regulation (EU) 2024/1620.
3. By 10 July 2028, AMLA shall issue guidelines addressed to supervisors on:
(a)
the characteristics of a risk-based approach to supervision;
(b)
the measures to be put in place within supervisors to ensure adequate and effective supervision, including to train their staff;
(c)
the steps to be taken when conducting supervision on a risk-sensitive basis.
Where relevant, the guidelines referred to in the first subparagraph shall take into account the outcomes of the assessments carried out pursuant to Articles 30 and 35 of Regulation (EU) 2024/1620.
4. Member States shall ensure that supervisors take into account the degree of discretion allowed to the obliged entity, and appropriately review the risk assessments underlying this discretion, and the adequacy of its internal policies, procedures and controls.
5. Member States shall ensure that supervisors prepare a detailed annual activity report and that a summary of that report is made public. That summary shall not contain confidential information and shall include:
(a)
the categories of obliged entities under the supervision and the number of obliged entities per category;
(b)
a description of the powers with which the supervisors are entrusted and the tasks assigned to them and, where relevant, of mechanisms referred to in Article 37(4) in which they participate and, for the lead supervisor, a summary of the coordination activities carried out;
(c)
an overview of the supervisory activities carried out.
Central contact points
1. For the purposes of Article 37(1) and Article 38(1), Member States may require electronic money issuers, payment service providers and crypto-asset service providers operating establishments in their territory other than a subsidiary or a branch, or operating in their territory through agents or distributors, or through other types of infrastructure, under the freedom to provide services, to appoint a central contact point in their territory. That central contact point shall ensure, on behalf of the obliged entity, compliance with AML/CFT rules and shall facilitate supervision by supervisors, including by providing supervisors with documents and information on request.
2. By 10 July 2026, AMLA shall develop draft regulatory technical standards and submit them to the Commission for adoption. Those draft regulatory technical standards shall set out the criteria for determining the circumstances in which the appointment of a central contact point pursuant to paragraph 1 is appropriate, and the functions of the central contact points.
Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 49 to 52 of Regulation (EU) 2024/1620.
Disclosure to FIUs
1. Member States shall ensure that if, in the course of the checks carried out on the obliged entities, or in any other way, supervisors discover facts that could be related to money laundering, its predicate offences or terrorist financing, they shall promptly inform the FIU.
2. Member States shall ensure that supervisors empowered to oversee the stock, foreign exchange and financial derivatives markets, inform the FIU if they discover information that could be related to money laundering or terrorist financing.
3. Member States shall ensure that compliance with the requirements of this Article does not replace any obligation for supervisory authorities to report to the relevant competent authorities any criminal activity they uncover or become aware of in the context of their supervisory activities.
Provision of information to FIUs
Member States shall ensure that supervisors communicate to the FIU at least the following information:
(a)
the list of establishments operating in the respective Member State and the list of infrastructure under their supervision pursuant to Article 38(1), and of any changes to those lists;
(b)
any relevant findings indicating serious weaknesses of the reporting systems of obliged entities;
(c)
the results of the risk assessments performed pursuant to Article 40, in aggregated form.
General principles regarding supervisory cooperation
Member States shall ensure that supervisors cooperate with each other to the greatest extent possible, regardless of their respective nature or status. Such cooperation may include conducting, within the powers of the requested supervisor, inquiries on behalf of a requesting supervisor, and the subsequent exchange of the information obtained through such inquiries, or facilitating the conduct of such inquiries by the requesting supervisor.
Provision of information on cross-border activities
1. Member States shall ensure that the supervisors of the home Member State inform the supervisors of the host Member State as soon as possible, and in any case within 3 months of receiving a notification pursuant to Article 8(1) of Regulation (EU) 2024/1624 of the activities that the obliged entity intends to carry out in the host Member State.
Any subsequent change notified to the supervisors of the home Member State pursuant to Article 8(2) of Regulation (EU) 2024/1624 shall be notified to the supervisors of the host Member State as soon as possible and in any case within 1 month of receiving it.
2. Member States shall ensure that the supervisors of the home Member State share with the supervisors of the host Member State information on the activities effectively carried out by the obliged entity in the territory of the host Member State that they receive in the context of their supervisory activities, including information submitted by the obliged entities in response to supervisory questionnaires, and any relevant information connected to the activities carried out in the host Member State.
The information referred to in the first subparagraph shall be exchanged at least annually. Where that information is provided in an aggregated form, Member States shall ensure that the supervisors of the home Member State respond promptly to any request for additional information by the supervisors of the host Member State.
By way of derogation from the second subparagraph of this paragraph, Member States shall ensure that supervisors of the home Member State inform the supervisors of the host Member State immediately upon receiving notification by obliged entities pursuant to Article 8(1) of Regulation (EU) 2024/1624 that activities in the host Member State have commenced.
Provisions related to cooperation in the context of group supervision
1. In the case of credit institutions and financial institutions that are part of a group, Member States shall ensure that, for the purposes laid down in Article 37(1), financial supervisors of the home Member State and those of the host Member State cooperate with each other to the greatest extent possible, regardless of their respective nature or status. They shall also cooperate with AMLA when acting as a supervisor.
2. Except when AMLA acts as a supervisor, Member States shall ensure that the financial supervisors of the home Member State supervise the effective implementation of the group-wide policies, procedures and controls referred to in Chapter II, Section 2, of Regulation (EU) 2024/1624. Member States shall also ensure that financial supervisors of the host Member State supervise the compliance of the establishments located in the territory of their Member State with Regulations (EU) 2024/1624 and (EU) 2023/1113.
3. For the purposes of this Article, and except in cases where AML/CFT supervisory colleges are set up in accordance with Article 49, Member States shall ensure that financial supervisors provide one another with any information they require for the exercise of their supervisory tasks, whether on request or on their own initiative. In particular, financial supervisors shall exchange any information that could significantly influence the assessment of the inherent or residual risk exposure of a credit institution or financial institution in another Member State, including:
(a)
identification of the group’s legal, governance and organisational structure, covering all subsidiaries and branches;
(b)
relevant information on the beneficial owners and senior management, including outcomes of fit and proper checks, whether carried out under this Directive or under other Union legal acts;
(c)
policies, procedures and controls in place within the group;
(d)
customer due diligence information, including customer files and records of transactions;
(e)
adverse developments in relation to the parent undertaking, subsidiaries or branches, which could seriously affect other parts of the group;
(f)
pecuniary sanctions that financial supervisors intend to impose and administrative measures that financial supervisors intend to apply in accordance with Section 4 of this Chapter.
Member States shall also ensure that financial supervisors are able to conduct, within their powers, inquiries on behalf of a requesting supervisor, and to share the information obtained through such inquiries, or to facilitate the conduct of such inquiries by the requesting supervisor.
4. By 10 July 2026, AMLA shall develop draft regulatory technical standards and submit them to the Commission for adoption. Those draft regulatory technical standards shall detail the respective duties of the home and host supervisors, and the modalities of cooperation between them.
Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 49 to 52 of Regulation (EU) 2024/1620.
5. Financial supervisors may refer to AMLA any of the following situations:
(a)
where a financial supervisor has not communicated the information referred to in paragraph 3;
(b)
where a request for cooperation has been rejected or has not been acted upon within a reasonable time;
(c)
where there is a disagreement on the basis of objective reasons on breaches identified and on the pecuniary sanctions to be imposed or administrative measures to be applied on the entity or group to remedy those breaches.
AMLA may act in accordance with the powers conferred on it under Article 33 of Regulation (EU) 2024/1620. When doing so, AMLA shall provide its opinion on the subject-matter of the request within 1 month.
6. Member States shall ensure that this Article also applies to the supervision of:
(a)
groups of obliged entities in the non-financial sector;
(b)
obliged entities operating under the freedom to provide services without any infrastructure in another Member States than the Member State where they are established, where the supervision of activities in that other Member State is carried out by the supervisors of that other Member State pursuant to Article 37(1), second subparagraph.
Where the situations referred to in paragraph 5 arise in relation to non-financial supervisors, AMLA may act in accordance with the powers conferred on it under Article 38 of Regulation (EU) 2024/1620.
Member States shall also ensure that in cases where obliged entities in the non-financial sector are part of structures which share common ownership, management or compliance control, including networks or partnerships, non-financial supervisors cooperate and exchange information.
Supervisory cooperation regarding obliged entities carrying out cross-border activities
1. Where obliged entities that are not part of a group carry out cross-border activities as referred to in Article 54(1) and supervision is shared between the supervisors of the home and host Member States pursuant to Articles 37(1) and 38(1), Member States shall ensure that those supervisors cooperate with each other to the greatest extent possible and assist each other in the performance of supervision pursuant to Articles 37(1) and 38(1).
For the purposes of the first subparagraph, and except in cases where AML/CFT supervisory colleges are set up in accordance with Article 49, Member States shall ensure that supervisors:
(a)
provide one another with any information they require for the exercise of their supervisory tasks, whether on request or on their own initiative, including the information referred to in Article 46(3), first subparagraph, points (a), (b) and (d), where that information is necessary for the performance of supervisory tasks;
(b)
inform one another of any adverse development in relation to the obliged entity, its establishments or types of infrastructure, which could seriously affect the entity’s compliance with applicable requirements, and pecuniary sanctions they intend to impose, or administrative measures they intend to apply in accordance with Section 4 of this Chapter;
(c)
are able to conduct, within their powers, inquiries on behalf of a requesting supervisor, and to share the information obtained through such inquiries, or to facilitate the conduct of such inquiries by the requesting supervisor.
This paragraph shall also apply in the case of obliged entities that are established in a single Member State and operate under the freedom to provide services in another Member State without any infrastructure, where the supervision of activities in that other Member State is carried out by the supervisors of that Member State pursuant to Article 37(1), second subparagraph.
2. Where supervision of the obliged entity and any of its types of infrastructure in other Member States is entrusted to the supervisors of the home Member State pursuant to Article 38(2), Member States shall ensure that the supervisors of the home Member State inform regularly the supervisors of the host Member State of the measures in place within the obliged entity, and compliance of that entity with applicable requirements, including those in place in the host Member State. Where serious, repeated or systematic breaches are identified, the supervisors of the home Member State shall promptly inform the supervisors of the host Member State of those breaches and of any pecuniary sanctions they intend to impose and administrative measures they intend to apply to remedy them.
Member States shall ensure that supervisors of the host Member State provide assistance to the supervisors of the home Member State to ensure the verification of compliance by the obliged entity with legal requirements. In particular, Member States shall ensure that supervisors of the host Member State inform the supervisors of the home Member State of any serious doubts that they have regarding compliance of the obliged entity with applicable requirements, and that they share any information they hold in this regard with the supervisors of the home Member State.
This paragraph shall also apply in the case of obliged entities that are established in a single Member State and operate under the freedom to provide services in another Member State without any infrastructure, except for cases where the supervision of activities in that other Member State is carried out by the supervisors of that other Member State pursuant to Article 37(1), second subparagraph.
3. Supervisors shall be able to refer to AMLA any of the following situations:
(a)
where a supervisor has not communicated the information referred to in paragraph 1, second subparagraph, points (a) and (b) or paragraph 2, first and second subparagraph;
(b)
where a request for cooperation has been rejected or has not been acted upon within a reasonable time;
(c)
where there is a disagreement on the basis of objective reasons on breaches identified and on the pecuniary sanctions to be imposed on or administrative measures to be applied to the entity to remedy those breaches.
AMLA shall act in accordance with the powers conferred on it under Articles 33 and 38 of Regulation (EU) 2024/1620. AMLA shall provide its opinion on the subject-matter of the request within 1 month.
Exchange of information in relation to implementation of group-wide policies in third countries
Supervisors, including AMLA, shall inform each other of instances in which the law of a third country does not permit the implementation of the policies, procedures and controls required under Article 16 of Regulation (EU) 2024/1624. In such cases, coordinated actions may be taken by supervisors to pursue a solution. In assessing which third countries do not permit the implementation of the policies, procedures and controls required under Article 16 of Regulation (EU) 2024/1624, supervisors shall take into account any legal constraints that may hinder proper implementation of those policies, procedures and controls, including professional secrecy, an insufficient level of data protection and other constraints limiting the exchange of information that may be relevant for that purpose.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
