Sittings · Document

OPINION (COM(2021)0421 – C90340/2021 – 2021/0240(COD)) 2022-05-18

On the proposal for a regulation of the European Parliament and of the Council establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) 1094/2010, (EU) 1095/2010

Committee on Budgetary Control · Rapporteur: José Manuel Fernandes

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SHORT JUSTIFICATION

As the Court of Auditors have recently found, EU-level action in the fight against ML/TF has significant weaknesses. There is institutional fragmentation and poor co-ordination at EU level when it comes to actions to prevent ML/TF and take action where risk is identified. The EU bodies that the Court audited have limited tools at present to ensure sufficient application of AML/CFT frameworks at national level. There is no single EU supervisor for ML/TF and the EU’s powers in relation to ML/TF is split between several bodies and co-ordination with Member States is carried out separately.

Furthermore, the European Banking Authority (EBA) has recently highlighted that competent authorities’ approaches to identifying and tackling ML/TF risks differed significantly across them, and varied beyond what would have been expected under a risk-based approach. According to the EBA, there is a risk that relevant risk exposures in Member States may have not been detected. Additionally, EBA also found that not all of the competent authorities took advantage of the existing cooperation channels to exchange information and improve the understanding of the risks to which their sector was exposed.

Work in the CONT Committee has always focused on the consideration of fraud and irregularities in the implementation of the budget of the Union, measures aimed at preventing and prosecuting such cases, the strict protection of the Union’s financial interests and the relevant actions by the European Public Prosecutor in this field, and relations with the European Anti-Fraud Office (OLAF). Recent work of this Committee on the assessment of the impact of organised crime on own resources of the EU and on the misuse of EU funds with a particular focus on shared management from an auditing and control perspective has resulted in the identification of money laundering as a risk element, as well as a facilitator of organised crime. There is strong evidence that the fight against money laundering is crucial to prevent the misuse of funds by criminal organisations. In this sense, the recently launched Operation Sentinel will target fraud against COVID-19 EU recovery funds being offered under the framework of the NextGenerationEU initiative, and will target fraud, as well as tax evasion, excise fraud, corruption, embezzlement, misappropriation and money laundering.

That is why the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism is welcomed, as it addresses some of the identified shortcomings. This opinion, based on the expertise of the CONT Committee in the area, focuses on several areas on which further options to deepen the effectiveness of the new Authority are possible.

In this sense, this draft opinion focuses on suggestions to improve the transparency and governance of the Authority, including an enhanced role of Europol, OLAF and EPPO. It also includes suggestions to reinforce the role of financial intelligence units, including on the overall training and assistance provided by the Authority. Finally, there are also suggestions related to the role of ECA, as well as on the discharge procedure.

AMENDMENTS

The Committee on Budgetary Control calls on the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs, as the committees responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2) Cross-border nature of crime and criminal proceeds endanger Union financial system efforts relating to prevention of money laundering and financing of terrorism. Those efforts have to be tackled at Union level through the creation of an Authority responsible for contributing to the implementation of harmonised rules. In addition, the Authority should pursue a harmonised approach to strengthen the Union’s existing AML/CFT preventive framework, and specifically AML supervision and cooperation between FIUs. That approach should reduce divergences in national legislation and supervisory practices and introduce structures that benefit the smooth functioning of the internal market in a determined manner and should, consequently, be based on Article 114 TFEU.

(2) Cross-border nature of crime, especially organised crime, and criminal proceeds endanger Union financial system efforts relating to prevention of money laundering and financing of terrorism and to countering organised crime. Those efforts have to be tackled at Union level through the creation of an Authority responsible for contributing to the implementation of harmonised rules. In addition, the Authority should pursue a harmonised approach to strengthen the Union’s existing AML/CFT preventive framework, and specifically AML supervision and cooperation between FIUs. That approach should reduce divergences in national legislation and supervisory practices and introduce structures that benefit the smooth functioning of the internal market in a determined manner and should, consequently, be based on Article 114 TFEU.

Amendment 2

Proposal for a regulation

Recital 4 a (new)

Text proposed by the Commission

Amendment

(4a) The Court of Auditors' Special Report No 13/2021 entitled 'EU efforts to fight money laundering in the banking sector are fragmented and implementation is insufficient' identified institutional fragmentation and poor co-ordination at Union level when it came to actions to prevent money laundering and highlighted that in practice AML/CFT supervision still takes place at national level with an insufficient Union oversight framework to ensure a level playing field. That Special Report also found evidence of lobbying of the European Banking Authority Board of Supervisors when that Board was part of a deliberative process.

Amendment 3

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6) Combining both direct and indirect supervisory competences over obliged entities, and also functioning as a support and cooperation mechanism for FIUs, is the most appropriate means of bringing about supervision and cooperation between FIUs at Union level. This should be achieved by creating an Authority which should combine independence and a high level of technical expertise and which should be established in line with the Joint Statement and Common Approach of the European Parliament, the Council of the European Union and the European Commission on decentralised agencies32 .

(6) Combining both direct and indirect supervisory competences over obliged entities, and also functioning as a support and cooperation mechanism for FIUs, is the most appropriate means of bringing about supervision and cooperation between FIUs at Union level. This should be achieved by creating an Authority which should combine independence and a high level of technical expertise and which should be established and governed in accordance with the principles set out in the Joint Statement and Common Approach of the European Parliament, the Council of the European Union and the European Commission on decentralised agencies32 .

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32 https://europa.eu/european-union/sites/default/files/docs/body/joint_statement_and_common_approach_2012_en.pdf.

Amendment 4

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) With the objective to strengthen AML/CFT rules at Union level and to enhance their clarity while ensuring consistency with international standards and other legislation, it is necessary to establish the coordinating role of the Authority at Union level in relation to all types of obliged entities to assist national supervisors and promote supervisory convergence, in order to increase the efficiency of the implementation of AML/CFT measures, also in the non-financial sector. Consequently, the Authority should be mandated to prepare regulatory technical standards, to adopt guidelines, recommendations and opinions with the aim that where supervision remains at national level, the same supervisory practices and standards apply in principle to all comparable entities. The Authority should be entrusted, due to its highly specialised expertise, with the development of a supervisory methodology, in line with a risk-based approach. Certain aspects of the methodology, which can incorporate harmonised quantitative benchmarks, such as approaches for classifying the inherent risk profile of obliged entities should be detailed in directly applicable binding regulatory measures – regulatory or implementing technical standards. Other aspects, which require wider supervisory discretion, such as approaches to assessing residual risk profile and internal controls in the obliged entities should be covered by non-binding guidelines, recommendations and opinions of the Authority. The harmonised supervisory methodology should take due account of, and where appropriate, leverage the existing supervisory methodologies relating to other aspects of supervision of the financial sector obliged entities, especially where there is interaction between AML/CFT supervision and prudential supervision. Specifically, the supervisory methodology to be developed by the Authority should be complementary to guidelines and other instruments developed by the European Banking Authority detailing approaches of prudential supervisory authorities with respect to factoring ML/TF risks in prudential supervision, in order to ensure effective interaction between prudential and AML/CFT supervision.

(9) With the objective to strengthen AML/CFT rules at Union level and to enhance their clarity while ensuring consistency with international standards and other legislation, it is necessary to establish the coordinating role of the Authority at Union level in relation to all types of obliged entities to assist national supervisors and promote supervisory convergence, in order to increase the efficiency of the implementation of AML/CFT measures, also in the non-financial sector. The Authority will ensure the cohesion and coordination between the Union institutions, bodies, offices and agencies that are part of the AML/CFT framework in order to enhance efficiency and avoid overlaps. Consequently, the Authority should be mandated to prepare regulatory technical standards, to adopt guidelines, recommendations and opinions with the aim that where supervision remains at national level, the same supervisory practices and standards apply in principle to all comparable entities. The Authority should be entrusted, due to its highly specialised expertise, with the development of a supervisory methodology, in line with a risk-based approach. Certain aspects of the methodology, which can incorporate harmonised quantitative benchmarks, such as approaches for classifying the inherent risk profile of obliged entities should be detailed in directly applicable binding regulatory measures – regulatory or implementing technical standards. Other aspects, which require wider supervisory discretion, such as approaches to assessing residual risk profile and internal controls in the obliged entities should be covered by non-binding guidelines, recommendations and opinions of the Authority. The harmonised supervisory methodology should take due account of, and where appropriate, leverage the existing supervisory methodologies relating to other aspects of supervision of the financial sector obliged entities, especially where there is interaction between AML/CFT supervision and prudential supervision. Specifically, the supervisory methodology to be developed by the Authority should be complementary to guidelines and other instruments developed by the European Banking Authority detailing approaches of prudential supervisory authorities with respect to factoring ML/TF risks in prudential supervision, in order to ensure effective interaction between prudential and AML/CFT supervision.

Amendment 5

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission

Amendment

(12a) It is necessary to develop cooperation mechanisms, for example between financial supervisory authorities, and establish a clear demarcation of competences between home and host state authorities in the case of cross border operators availing themselves of the freedom of establishment and the freedom to provide services.

Amendment 6

Proposal for a regulation

Recital 31 a (new)

Text proposed by the Commission

Amendment

(31a) The Authority should have an autonomous financial intelligence capability to decisively contribute to the fight against financial crime. National FIUs should cooperate extensively, sharing all relevant information for the purposes of preventing money laundering and its predicate offenses. A Union System of FIUs might be established as the Union FIU after one of the periodic evaluations and reviews carried out by the Commission of the Authority’s performance.

Amendment 7

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32) In order to analyse suspicious activity affecting multiple jurisdictions, the relevant FIUs that received linked reports should be able to efficiently conduct joint analyses of cases of common interest. To this end, the Authority should be able to propose, coordinate and support with all appropriate means the joint analyses of cross-border suspicious transactions or activities. The joint analyses should be triggered where there is a need to conduct just such joint analyses pursuant to the relevant provisions in Union law. Upon the explicit consent of the FIUs participating in the joint analyses, the staff of the Authority supporting the conduct of joint analyses should be able to receive and process all necessary data and information, including the data and information pertaining to the analysed cases.

(32) In order to analyse suspicious activity affecting multiple jurisdictions, the relevant FIUs that received linked reports should be able to efficiently conduct joint analyses of cases of common interest. To this end, the Authority should be able to organise, coordinate and support with all appropriate means the joint analyses of cross-border suspicious transactions or activities. The joint analyses should be triggered where there is a need to conduct just such joint analyses pursuant to the relevant provisions in Union law. The staff of the Authority coordinating the conduct of joint analyses should be able to receive and process all necessary data and information, including the data and information pertaining to the analysed cases.

Amendment 8

Proposal for a regulation

Recital 32 a (new)

Text proposed by the Commission

Amendment

(32a) A prudent approach is needed with regard to the FIU's operational powers to suspend transactions and bank and payment accounts; to this end, effective mechanisms should be put in place to uphold fundamental rights, including the right to property, and prevent any abuse of power.

Amendment 9

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34) In order to facilitate and improve cooperation between FIUs and the Authority, including for the purposes conducting joint analyses, the FIUs should be able to delegate one staff member per FIU to the Authority on a voluntary basis. The national FIU delegates should support the Authority’s staff in carrying out all the tasks relating to FIUs, including the conduct of joint analyses and the preparation of threat assessments and strategic analyses of money laundering and terrorist financing threats, risks and methods. Apart from the joint analyses, the Authority should encourage and facilitate various forms of mutual assistance between FIUs, including training and staff exchanges in order to improve capacity building and enable the exchange of knowledge and good practices amongst FIUs.

(34) In order to facilitate and improve cooperation between FIUs and the Authority, including for the purposes conducting joint analyses, the FIUs should delegate one staff member per FIU to the Authority. The national FIU delegates should support the Authority’s staff in carrying out all the tasks relating to FIUs, including the conduct of joint analyses and the preparation of threat assessments and strategic analyses of money laundering and terrorist financing threats, risks and methods. Apart from the joint analyses, the Authority should encourage and facilitate various forms of mutual assistance between FIUs, including training and staff exchanges in order to improve capacity building and enable the exchange of knowledge and good practices amongst FIUs.

Amendment 10

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) The Authority should manage, host, and maintain FIU.net, the dedicated IT system allowing FIUs to cooperate and exchange information amongst each other and, where appropriate, with their counterparts from third countries and third parties. The Authority should, in cooperation with Member States, keep the system up-to-date. To this end, the Authority should ensure that at all times the most advanced available state-of-the-art technology is used for the development of the FIU.net, subject to a cost-benefit analysis.

Amendment 11

Proposal for a regulation

Recital 42

Text proposed by the Commission

Amendment

(42) The governing body of the Authority should be the Executive Board composed of the Chair of the Authority and of five full time members, appointed by the General Board based on the shortlist by the Commission. With the aim of ensuring a speedy and efficient decision making process, the Executive Board should be in charge of planning and execution of all the tasks of the Authority except where specific decisions are explicitly allocated to the General Board. In order to ensure objectivity and appropriate rapidity of the decision-making process in the area of direct supervision of the selected obliged entities, the Executive Board should take all binding decisions addressed to selected obliged entities. In addition, together with a representative of the Commission the Executive Board should be collectively responsible for the administrative and budgetary decisions of the Authority. The consent of the Commission should be required when the Executive Board is taking decisions related to the budget administration, procurement, recruitment, and audit of the Authority, given that a portion of funding of the Authority will be provided from Union budget.

(42) The governing body of the Authority should be the Executive Board composed of the Chair of the Authority and of five full time members, appointed by the General Board based on a gender-balanced shortlist by the Commission, after having received the European Parliament 's approval. With the aim of ensuring a speedy and efficient decision making process, the Executive Board should be in charge of planning and execution of all the tasks of the Authority except where specific decisions are explicitly allocated to the General Board. In order to ensure that the decision-making process in the area of direct supervision of the selected obliged entities is objective and swift, the Executive Board should take all binding decisions addressed to selected obliged entities. In addition, together with a representative of the Commission the Executive Board should be collectively responsible for the administrative and budgetary decisions of the Authority.

Amendment 12

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) To ensure the independent functioning of the Authority the five Members of the Executive Board and the Chair of the Authority should act independently and in the interest of the Union as a whole. They should behave, both during and after their term of office, with integrity and discretion as regards the acceptance of certain appointments or benefits. To avoid giving any impression that a Member of the Executive Board might use its position as a Member of the Executive Board of the Authority to get a high-ranking appointment in the private sector after his term of office and to prevent any post-public employment conflicts of interests, a cooling-off period for the five Members of the Executive Board, including the Chair of the Authority, should be introduced.

(44) To ensure the independent functioning of the Authority the five Members of the Executive Board and the Chair of the Authority should act independently and in the interest of the Union as a whole. They should behave, both during and after their term of office, with integrity and discretion as regards the acceptance of certain appointments or benefits. In order to avoid Members of the Executive Board potentially using their position as Members of the Executive Board of the Authority to get high-ranking appointments in the private sector after their term of office and to prevent any post-public employment conflicts of interests, a cooling-off period for the five Members of the Executive Board, including the Chair of the Authority, should be introduced. During the cooling-off period the persons concerned should be prohibited from acquiring any role in an obliged entity that may give rise to conflicts of interest or to situations which may objectively be perceived as a conflict of interest.

Amendment 13

Proposal for a regulation

Recital 46 a (new)

Text proposed by the Commission

Amendment

(46a) All recruitments should be based on competency, while assuring gender balance and respecting the need for geographical balance of all Member States at all levels of staff.

Amendment 14

Proposal for a regulation

Recital 48

Text proposed by the Commission

Amendment

(48) To guarantee the proper functioning of the Authority, funding should be provided by a combination of fees levied on certain obliged entities and a contribution from the Union budget, depending on the tasks and functions. The budget of the Authority should be part of the Union budget, confirmed by the Budgetary Authority on the basis of a proposal from the Commission. The Authority should submit to the Commission a draft budget and an internal financial regulation for approval.

(48) To guarantee the proper functioning of the Authority and to allow it to carry out all the tasks assigned to it under this Regulation, the Authority should be provided with adequate staffing and adequate financial resources; funding should be provided by a combination of fees levied on certain obliged entities and a contribution from the Union budget, depending on the tasks and functions. The budget of the Authority should be part of the Union budget, confirmed by the Budgetary Authority on the basis of a proposal from the Commission. The Authority should submit to the Commission a draft budget and an internal financial regulation for approval.

Amendment 15

Proposal for a regulation

Recital 50

Text proposed by the Commission

Amendment

(50) The rules on establishment and implementation of the budget of the Authority, as well as the presentation of annual accounts of the Authority, should follow the provisions of Commission Delegated Regulation (EU) 2019/71536 as regards cooperation with the European Public Prosecutor’s Office and the effectiveness of the European Anti-Fraud Office investigations.

(50) The rules on establishment and implementation of the budget of the Authority, as well as the presentation of annual accounts of the Authority, should follow the provisions of Commission Delegated Regulation (EU) 2019/71536 including as regards cooperation with the European Public Prosecutor’s Office and the effectiveness of the European Anti-Fraud Office investigations.

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36 Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (OJ L 122, 10.5.2019, p. 1).

Justification

Cooperation with the EPPO and OLAF are two of many provisions in the Delegated Financial Regulation, which applies in full.

Amendment 16

Proposal for a regulation

Recital 58

Text proposed by the Commission

Amendment

(58) Without prejudice to the obligations of the Member States and their authorities, the processing of personal data on the basis of this Regulation for the purposes of the prevention of money laundering and terrorist financing should be considered necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the Authority under Article 5 of Regulation (EU) 2018/1725 of the European Parliament and of the Council41 and Article 6 of Regulation 2016/679of the European Parliament and of the Council42 . When developing any instruments or taking any decisions that may have a significant impact on the protection of personal data, the Authority should closely cooperate, where relevant, with the European Data Protection Board established by Regulation (EU) 2016/679 and with the European Data Protection Supervisor established by Regulation (EU) 2018/1725 to avoid duplication.

(58) Without prejudice to the obligations of the Member States and their authorities, the processing of personal data on the basis of this Regulation for the purposes of the prevention of money laundering and terrorist financing should be considered necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the Authority under Article 5 of Regulation (EU) 2018/1725 of the European Parliament and of the Council41 and Article 6 of Regulation 2016/679of the European Parliament and of the Council42 . When developing any instruments or taking any decisions that may have a significant impact on the protection of personal data, the Authority should consult with the European Data Protection Board established by Regulation (EU) 2016/679 and with the European Data Protection Supervisor established by Regulation (EU) 2018/1725 to avoid duplication.

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41 Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).

42 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

Amendment 17

Proposal for a regulation

Recital 59

Text proposed by the Commission

Amendment

(59) The Authority should establish cooperative relations with the relevant Union agencies and bodies, including Europol, Eurojust, the EPPO, and the European Supervisory Authorities, namely the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority. To improve cross-sectoral supervision and a better cooperation between prudential and AML/CFT supervisors the Authority should also establish cooperative relations with the authorities competent for prudential supervision of financial sector obliged entities, including the European Central Bank with regard to matters relating to the tasks conferred on it by Council Regulation (EU) No 1024/201343 , as well as with resolution authorities as defined in Article 3 of Directive (EU) 2014/59/EU of the European Parliament and the Council44 and designated Deposit Guarantee Schemes authorities as defined in Article 2 (1), point 18 of Directive 2014/49/EU of the European Parliament and the Council45 . To this end, the Authority should be able to conclude agreements or memoranda of understanding with such bodies, including with regard to any information exchange which is necessary for the fulfilment of the respective tasks of the Authority and these bodies. The Authority should make its best efforts to share information with such bodies on their request, within the limits posed by legal constraints, including data protection legislation. In addition, the Authority should enable effective information exchange between all financial supervisors in the AML/CFT supervisory system and the aforementioned authorities, such cooperation and information exchanges should take place in a structured and efficient way.

(59) The Authority should play a central role in strengthening the cooperation and facilitating information flows between the relevant Union agencies and bodies, including Europol, Eurojust, the EPPO, the EDPS, FRA and the European Supervisory Authorities, namely the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority. To improve cross-sectoral supervision and a better cooperation between prudential and AML/CFT supervisors the Authority should also establish cooperative relations with the authorities competent for prudential supervision of financial sector obliged entities, including the European Central Bank with regard to matters relating to the tasks conferred on it by Council Regulation (EU) No 1024/201343, as well as with resolution authorities as defined in Article 3 of Directive (EU) 2014/59/EU of the European Parliament and the Council44 and designated Deposit Guarantee Schemes authorities as defined in Article 2 (1), point 18 of Directive 2014/49/EU of the European Parliament and the Council45 so that prudential supervisors can use the information held by AML/CFT authorities in their supervisory processes and AML/CFT supervisors can use the information from prudential supervisors to inform their approach to the AML/CFT supervision of institutions To this end, the Authority should be able to conclude agreements or memoranda of understanding with such bodies, including with regard to any information exchange which is necessary for the fulfilment of the respective tasks of the Authority and these bodies. Such agreements should enable the streamlined, uninterrupted and digital flow of information and strengthen interoperability of systems and data. The Authority should make its best efforts to share information with such bodies on their request, within the limits posed by legal constraints, including data protection legislation. In addition, the Authority should enable effective information exchange between all financial supervisors in the AML/CFT supervisory system and the aforementioned authorities, such cooperation and information exchanges should take place in a structured and efficient way, in order to draw on the experience of other relevant Union institutions, bodies, offices and agencies. The Authority should further establish a contact point and a protocol for whistle-blowers, respecting the necessary confidentiality requirements.

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43 Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63).

44 Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012 of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).

45 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149).

Amendment 18

Proposal for a regulation

Recital 63

Text proposed by the Commission

Amendment

(63) Since the Authority will have a full range of powers and tasks related to direct and indirect supervision and oversight of all obliged entities, it is necessary that these powers remain consolidated within one Union body, and do not give rise to conflicting competences with other Union bodies. Therefore, the European Banking Authority should not retain its tasks and powers related to anti-money laundering and countering the financing of terrorism, and the respective articles in Regulation (EU) No 1093/2010 of the European Parliament and of the Council46 should be deleted. The resources allocated to the European Banking Authority for the fulfilment of those tasks should be transferred to the Authority. Considering that all three European Supervisory Authorities (EBA, ESMA and EIOPA) will be cooperating with the Authority, and may attend the meetings of the General Board in supervisory composition as observers, the same possibility should be afforded to the Authority in respect of meetings of the Board of Supervisors of the European Supervisory Authorities. In cases where the respective Boards of Supervisors discuss or decide on matters that are relevant for the execution of the Authority’s tasks and powers, the Authority should be able to participate in their meetings as an observer. The articles on the compositions of the Board of Supervisors in Regulation (EU) No 1093/2010, Regulation (EU) 1094/2010 of the European Parliament and the Council47 , and Regulation (EU) 1095/2010 of the European Parliament and the Council48 should therefore be amended accordingly.

(63) Since the Authority will have a full range of powers and tasks related to direct and indirect supervision and oversight of all obliged entities, it is necessary that these powers remain consolidated within one Union body, and do not give rise to conflicting competences with other Union bodies. Therefore, the European Banking Authority should not retain its tasks and powers related to anti-money laundering and countering the financing of terrorism, and the respective articles in Regulation (EU) No 1093/2010 of the European Parliament and of the Council46 should be deleted. The resources allocated to the European Banking Authority for the fulfilment of those tasks should be transferred to the Authority. Considering that all three European Supervisory Authorities (EBA, ESMA and EIOPA) will be cooperating with the Authority, and may attend the meetings of the General Board in supervisory composition as observers, the same possibility should be afforded to the Authority in respect of meetings of the Board of Supervisors of the European Supervisory Authorities, in order to ensure a smooth exchange of information and draw on relevant experiences. In cases where the respective Boards of Supervisors discuss or decide on matters that are relevant for the execution of the Authority’s tasks and powers, the Authority should be able to participate in their meetings as an observer. The articles on the compositions of the Board of Supervisors in Regulation (EU) No 1093/2010, Regulation (EU) 1094/2010 of the European Parliament and the Council47 , and Regulation (EU) 1095/2010 of the European Parliament and the Council48 should therefore be amended accordingly.

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46 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).

47 Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).

48 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

Amendment 19

Proposal for a regulation

Recital 64 a (new)

Text proposed by the Commission

Amendment

(64a) There is a need for an equitable distribution, in geographical and other terms, of financial supervisory tasks. The creation of the Authority may help reduce disparities between Member States regarding AML/CFT supervisory capacity, with obvious benefits when it comes to combating money laundering and terrorist funding more effectively at the Union level.

Amendment 20

Proposal for a regulation

Recital 64 a (new)

Text proposed by the Commission

Amendment

(64a) Five years after the Authority becomes fully operational, the Commission should conduct a review of the Authority's performance in relation to its mandate, objectives and tasks and its contribution to the non-quantifiable objective of tackling organised criminal groups by depriving them of their assets;

Amendment 21

Proposal for a regulation

Article 1 – paragraph 3 – point f a (new)

Text proposed by the Commission

Amendment

(fa) providing adequate training and assistance to selected obliged entities, financial and non-financial supervisors, and FIUs.

Justification

EBA has recently identified that competent authorities sometimes experience difficulties in understanding ultimate beneficiary owners' structures of institutions under their supervision, among other shortcomings. Adequate training and assistance provided by the Authority may be helpful.

Amendment 22

Proposal for a regulation

Article 2 – paragraph 1 – point 2 a (new)

Text proposed by the Commission

Amendment

2a. 'customer' means a natural or legal person who has a direct contractual business relationship with the obliged entity;

Amendment 23

Proposal for a regulation

Article 5 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

(ea) establish and keep up to date a Union interconnected register of assets, providing information on and allowing the identification of the beneficial owners of an extended and clearly defined spectrum of assets;

Amendment 24

Proposal for a regulation

Article 5 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) monitor and support the implementation of asset freezes under the Union restrictive measures across the internal market;

(f) monitor and support the implementation of asset freezes, including virtual assets and cryptocurrencies, under the Union restrictive measures across the internal market;

Amendment 25

Proposal for a regulation

Article 5 – paragraph 1 – point g a (new)

Text proposed by the Commission

Amendment

(ga) provide publications, training and other services to obliged entity or non-obliged entity in order to raise awareness and address money laundering, terrorist financing and targeted financial sanctions related risks.

Amendment 26

Proposal for a regulation

Article 5 – paragraph 2 – point d a (new)

Text proposed by the Commission

Amendment

(da) provide adequate training and assistance to selected obliged entities.

Amendment 27

Proposal for a regulation

Article 5 – paragraph 3 – point g a (new)

Text proposed by the Commission

Amendment

(ga) provide adequate training and assistance to financial supervisors.

Amendment 28

Proposal for a regulation

Article 5 – paragraph 4 – point f a (new)

Text proposed by the Commission

Amendment

(fa) provide adequate training and assistance to non-financial supervisors.

Amendment 29

Proposal for a regulation

Article 5 – paragraph 5 – point i a (new)

Text proposed by the Commission

Amendment

(ia) provide adequate training and assistance to FIUs.

Amendment 30

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. By the end of each year, the Chair of the Authority shall present to the General Board in supervisory composition as referred to in Article 46(2) a consolidated planning of the thematic reviews that supervisory authorities intend to undertake during the following year. The Chair may also issue an opinion on potential shortcomings or areas that are not sufficiently covered by the thematic reviews. The General Board in supervisory composition may issue recommendations of thematic reviews to the supervisory authorities for inclusion in future work programmes. In such cases, the supervisory authorities shall provide a written reply to the General Board in supervisory composition before 31 October of the following year.

Justification

The authority should be empowered to issue opinions on potential areas of interest that are not covered by the national authorities, as it may be able to more effectively aggregate data and awareness across the EU.

Amendment 31

Proposal for a regulation

Article 10 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. The Authority shall facilitate and encourage at least the following activities:

2. The Authority shall organise, facilitate and encourage at least the following activities:

Amendment 32

Proposal for a regulation

Article 10 – paragraph 3

Text proposed by the Commission

Amendment

3. Each supervisory authority may submit a request for mutual assistance related to its supervisory tasks to the Authority, specifying the type of assistance that can be provided by the staff of the Authority, the staff of one or more supervisory authorities, or a combination thereof. If the request concerns activities that relate to the supervision of specific obliged entities, the requesting supervisory authority shall ensure that access to any information and data necessary for the provision of assistance may be granted. The Authority shall keep and regularly update the information on specific areas of expertise and on the capacities of supervisory authorities to provide mutual assistance.

Amendment 33

Proposal for a regulation

Article 11 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. The Authority shall consult the European Data Protection Supervisor to establish storage limitation periods for each type of data processed.

Amendment 34

Proposal for a regulation

Article 11 – paragraph 2 –point i (new)

Text proposed by the Commission

Amendment

(i) information collected from competent authorities relating to weaknesses identified during ongoing supervision and authorisation procedures in the processes and procedures, governance arrangements, fitness and propriety, acquisition of qualifying holdings, business models and activities of financial sector operators in relation to preventing and countering money laundering and terrorist financing as well as measures taken by competent authorities, in response to the following material weaknesses affecting one or more requirements of the legislative acts referred to in Article 1(2) of this Regulation, Article 1(2) of Regulation (EU) No 1094/2010 and Article 1(2) of Regulation (EU) No1095/2010 and of any national laws transposing them, respectively, with regard to the prevention of and countering the use of the financial system for the purpose of money laundering or of terrorist financing:

(i) a breach or a potential breach by a financial sector operator of such requirements,

(ii) the inappropriate or ineffective application by a financial sector operator of such requirements, or

(iii) the inappropriate or ineffective application by a financial sector operator of its internal policies and procedures to comply with such requirements.

Amendment 35

Proposal for a regulation

Article 11 – paragraph 4

Text proposed by the Commission

Amendment

4. Any supervisory authority or any non-AML authority may address to the Authority a reasoned request for information collected pursuant to paragraph 2 that is relevant for its supervisory activities. The Authority shall assess those requests and provide the information requested by the supervisory authorities or non-AML authorities on a need-to-know basis and confidential basis and in a timely manner. The Authority shall inform the authority that has initially provided the requested information, of the identity of the requesting supervisory or other authority, the identity of an obliged entity concerned, the reason for the information request as well as whether the information has been provided to the requesting authority.

4. Any supervisory authority or any non-AML authority, including the EPPO, OLAF and Europol, may address to the Authority a reasoned request for information collected pursuant to paragraph 2 that is relevant for its supervisory activities. The Authority shall assess those requests and provide the information requested by the supervisory authorities or non-AML authorities on a need-to-know basis and confidential basis and in a timely manner. The Authority shall inform the authority that has initially provided the requested information, of the identity of the requesting supervisory or other authority, the identity of an obliged entity concerned, the reason for the information request as well as whether the information has been provided to the requesting authority.

Amendment 36

Proposal for a regulation

Article 12 – paragraph 3 – point i a (new)

Text proposed by the Commission

Amendment

(ia) companies that are engaged in the issuance, trade or distribution of crypto-assets or provide services related to crypto-assets in the Union;

Amendment 37

Proposal for a regulation

Article 12 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a) with respect to customer-related risk: the share of non-resident customers, the presence and share of customers identified as Politically Exposed persons (‘PEPs’);

(a) with respect to customer-related risk: the share of non-resident customers, the presence and share of customers identified as Politically Exposed persons (‘PEPs’), and the share of beneficiaries of Union funds, including final beneficiaries;

Amendment 38

Proposal for a regulation

Article 16 – paragraph 2

Text proposed by the Commission

Amendment

2. The persons referred to in paragraph 1 or their representatives and, in the case of legal persons or associations having no legal personality, the persons authorised to represent them by law or by their constitution, shall supply the information requested. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter shall remain fully responsible if the information supplied is incomplete, incorrect or misleading.

2. The persons referred to in paragraph 1 or their representatives and, in the case of legal persons or associations having no legal personality, the persons authorised to represent them by law or by their constitution, shall, without undue delay, cooperate with the Authority and supply the information requested. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter shall remain fully responsible if the information supplied is incomplete, incorrect or misleading.

Amendment 39

Proposal for a regulation

Article 17 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. In order to carry out the tasks conferred on it by this Regulation, the Authority may conduct all necessary investigations of any selected obliged entity or any natural or legal person employed by or belonging to a selected obliged entity and established or located in a Member State.

1. In order to carry out the tasks conferred on it by this Regulation, the Authority may conduct all necessary investigations of any selected obliged entity, other entities of the same group as the selected obliged entity, or any natural or legal person employed by or belonging to a selected obliged entity, and established or located in a Member State.

Amendment 40

Proposal for a regulation

Article 25 – paragraph 8

Text proposed by the Commission

Amendment

8. The Authority shall refer matters for criminal prosecution to the relevant national authorities where, in carrying out its duties under this Regulation, it finds that there are serious indications of the possible existence of facts liable to constitute criminal offences. In addition, the Authority shall refrain from imposing administrative pecuniary sanctions or periodic penalty payments where a prior acquittal or conviction arising from identical facts, or from facts which are substantially the same, has acquired the force of res judicata as the result of criminal proceedings under national law.

8. The Authority shall refer matters for criminal prosecution to the relevant national authorities or, when relevant, to the EPPO, where, in carrying out its duties under this Regulation, it finds that there are serious indications of the possible existence of facts liable to constitute criminal offences. In addition, the Authority shall refrain from imposing administrative pecuniary sanctions or periodic penalty payments where a prior acquittal or conviction arising from identical facts, or from facts which are substantially the same, has acquired the force of res judicata as the result of criminal proceedings under national law.

Amendment 41

Proposal for a regulation

Article 28 – paragraph 1

Text proposed by the Commission

Amendment

1. The Authority shall perform periodic assessments of some or all of the activities of one, several, or all financial supervisors, including the assessment of their tools and resources to ensure high level supervisory standards and practices. The assessments shall include a review of the application of the AML/CFT supervisory methodology developed pursuant to Article 8 and shall cover all financial supervisors in a single assessment cycle. The length of each assessment cycle shall be determined by the Authority and shall not exceed seven years.

1. The Authority shall perform periodic assessments of some or all of the activities of one, several, or all financial supervisors, including the assessment of their tools and resources to ensure high level supervisory standards and practices. The assessments shall include a review of the application of the AML/CFT supervisory methodology developed pursuant to Article 8 and shall cover all financial supervisors in a single assessment cycle. A financial supervisor may be covered more than once in a single assessment cycle. The length of each assessment cycle shall be determined by the Authority and shall not exceed seven years.

Justification

On specially risky financial supervisors, it may be necessary to carry out more evaluations on the same assessment cycle.

Amendment 42

Proposal for a regulation

Article 28 – paragraph 4

Text proposed by the Commission

Amendment

4. Financial supervisors shall make every effort to comply with the specific follow-up measures addressed to them as a result of the assessment.

4. Financial supervisors shall make every effort to comply with the specific follow-up measures addressed to them as a result of the assessment and shall report to the Authority on the implementation of the follow-up measures. The Authority shall provide a follow-up report two years after the date of publication of the assessment. The follow-up report shall include an assessment of the adequacy and effectiveness of the actions undertaken by the financial supervisors that were subject to the assessment. The Authority shall publish the findings of the follow-up report on its website.

Justification

The follow-up of the Authority of its measures is necessary to ensure an adequate supervision. Furthermore, enhanced transparency can contribute to ensure a coherent approach in the different Member States.

Amendment 43

Proposal for a regulation

Article 29 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) assist in the organisation of college meetings, where requested by the relevant financial supervisors;

(b) organise college meetings, where requested by the relevant financial supervisors;

Amendment 44

Proposal for a regulation

Article 29 – paragraph 1 – point c

Text proposed by the Commission

Amendment

Amendment 45

Proposal for a regulation

Article 29 – paragraph 2

Text proposed by the Commission

Amendment

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

Amendment 46

Proposal for a regulation

Article 31 – paragraph 5

Text proposed by the Commission

Amendment

5. The Authority shall publish the findings of the peer review on its website and submit an opinion to the Commission where, having regard to the outcome of the peer review or to any other information acquired by the Authority in carrying out its tasks, it considers that further harmonisation of Union rules applicable to obliged entities in the non-financial sector or to non-financial supervisors would be necessary from the Union’s perspective.

5. The Authority shall publish the findings of the peer review, as well as any guidelines and recommendations referred to in paragraph 4, on its website and submit an opinion to the Commission where, having regard to the outcome of the peer review or to any other information acquired by the Authority in carrying out its tasks, it considers that further harmonisation of Union rules applicable to obliged entities in the non-financial sector or to non-financial supervisors would be necessary from the Union’s perspective.

Amendment 47

Proposal for a regulation

Article 32 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

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

Amendment 48

Proposal for a regulation

Article 33 – paragraph 1

Text proposed by the Commission

Amendment

1. Where, pursuant to Article 25 of [OP please insert the next number to the AMLD, COM(2021)423], a FIU of a Member State identifies a potential need to conduct a joint analysis with one or several FIUs in other Member States, it shall notify the Authority thereof. The Authority shall inform the FIUs in all the relevant Member States and invite them to take part in the joint analysis within five days of the initial notification. To this end, the Authority shall use secured channels of communication. The FIUs in all the relevant Member States shall consider taking part in the joint analysis. The Authority shall ensure that the joint analysis is launched within 20 days of the initial notification.

Amendment 49

Proposal for a regulation

Article 33 – paragraph 3

Text proposed by the Commission

Amendment

3. Upon explicit consent of the FIUs participating in the joint analysis, the staff of the Authority supporting the joint analysis shall be granted access to all the data pertaining to the subject-matter of the joint analysis and shall be able to process those data.

3. The staff of the Authority organising the joint analysis shall be granted access to all the data pertaining to the subject-matter of the joint analysis and shall be able to process those data.

Amendment 50

Proposal for a regulation

Article 33 – paragraph 4

Text proposed by the Commission

Amendment

4. The Authority shall provide all the necessary tools and operational support required for the conduct of the particular joint analysis, in accordance with the developed methods and procedures. In particular, the Authority shall set up a dedicated, secured channel of communication for the performance of the joint analysis, and shall provide the appropriate technical coordination, including IT support, budgetary and logistical support.

Amendment 51

Proposal for a regulation

Article 34 – paragraph 3

Text proposed by the Commission

Amendment

3. On the basis of the feedback referred to in paragraph 2, or on its own initiative, the Authority may issue follow-up reports relating to the conduct of joint analyses, including specific suggestions on adjustments regarding the methods and procedures for the conduct of the joint analyses, and conclusions on the outcome of the joint analyses. The procedural and operational aspects of the follow-up report shall be shared with all FIUs, without disclosing confidential or restricted information on the case. The conclusions and recommendations relating to the conduct of the joint analyses shall be shared with the FIUs that participated in the relevant joint analyses, and with all the other FIUs insofar as these conclusions do not contain confidential or restricted information.

3. On the basis of the feedback referred to in paragraph 2, or on its own initiative, the Authority shall issue follow-up reports relating to the conduct of joint analyses, including specific suggestions on adjustments regarding the methods and procedures for the conduct of the joint analyses, and conclusions on the outcome of the joint analyses. The procedural and operational aspects of the follow-up report shall be shared with all FIUs, without disclosing confidential or restricted information on the case. The conclusions and recommendations relating to the conduct of the joint analyses shall be shared with the FIUs that participated in the relevant joint analyses, and with all the other FIUs insofar as these conclusions do not contain confidential or restricted information.

Amendment 52

Proposal for a regulation

Article 35 – paragraph 1

Text proposed by the Commission

Amendment

1. The FIU of each Member State may delegate one staff member to the Authority. The national FIU delegate shall have his or her regular place of work at the seat of the Authority.

1. The FIU of each Member State shall delegate one staff member to the Authority. The national FIU delegate shall have his or her regular place of work at the seat of the Authority.

Amendment 53

Proposal for a regulation

Article 36 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) personnel exchanges and secondment schemes, including secondment of FIU staff from a Member State to the Authority;

(b) personnel exchanges and secondment schemes, including secondment of FIU staff from a Member State to the Authority and staff from the Authority to the national FIUs;

Justification

Secondments of staff of the Authority to the Member States may contribute to the development of common understandings and expertise in all the Member States

Amendment 54

Proposal for a regulation

Article 36 – paragraph 2

Text proposed by the Commission

Amendment

2. Any FIU may submit to the Authority a request for assistance related to the tasks of the FIU, specifying the type of assistance that can be provided by the staff of the Authority, the staff of one or more than one FIU, or a combination thereof. The FIU requesting assistance shall ensure the access to any information and data necessary for the provision of such assistance. The Authority shall keep and regularly update information on specific areas of expertise and capacity of FIUs to provide mutual assistance.

Amendment 55

Proposal for a regulation

Article 37 – paragraph 2

Text proposed by the Commission

Amendment

2. The Authority shall ensure uninterrupted functioning of the FIU.net and keep it and up to date. Where necessary to support or strengthen the exchange of information and cooperation between the FIUs and based on the needs of FIUs, the Authority shall design and implement, or otherwise make available, upgraded or additional functionalities of FIU.net.

Amendment 56

Proposal for a regulation

Article 37 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) coordinate, manage and support any testing activities;

(b) organise, coordinate, manage and support any testing activities;

Amendment 57

Proposal for a regulation

Article 37 – paragraph 4

Text proposed by the Commission

Amendment

4. For the purposes of carrying out the tasks referred to in paragraphs 1, 2 and 3, the Authority shall be empowered to conclude or enter into legally binding contracts or agreements with third party service providers.

4. For the purposes of carrying out the tasks referred to in paragraphs 1, 2 and 3, the Authority shall have the dedicated staff necessary to ensure the functioning and security of FIU.net .

Amendment 58

Proposal for a regulation

Article 38 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

Before submitting them to the Commission, the Authority shall conduct open public consultations on draft regulatory technical standards and shall analyse the potential related costs and benefits, unless those consultations and analyses are highly disproportionate in relation to the scope and impact of the draft regulatory technical standards concerned or in relation to the particular urgency of the matter.

Before submitting them to the Commission, the Authority shall conduct open public consultations on draft regulatory technical standards and shall analyse the potential related costs and benefits.

Amendment 59

Proposal for a regulation

Article 38 – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

The Commission shall conduct open public consultations on draft regulatory technical standards and analyse the potential related costs and benefits, unless such consultations and analyses are disproportionate in relation to the scope and impact of the draft regulatory technical standards concerned or in relation to the particular urgency of the matter.

The Commission shall conduct open public consultations on draft regulatory technical standards and analyse the potential related costs and benefits.

Amendment 60

Proposal for a regulation

Article 41 – paragraph 2

Text proposed by the Commission

Amendment

2. Where appropriate, the European Parliament or the Council may invite the responsible Commissioner, together with the Chairperson of the Authority, within one month of the notice referred to in paragraph 1, for an ad hoc meeting of the competent committee of the European Parliament or the Council to present and explain their differences.

2. Where appropriate, the European Parliament or the Council may invite the responsible Commissioner, together with the Chairperson of the Authority, within three months of the notice referred to in paragraph 1, for an ad hoc meeting of the competent committee of the European Parliament or the Council to present and explain their differences.

Amendment 61

Proposal for a regulation

Article 42 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

Before submitting draft implementing technical standards to the Commission, the Authority shall conduct open public consultations and shall analyse the potential related costs and benefits, unless such consultations and analyses are highly disproportionate in relation to the scope and impact of the draft implementing technical standards concerned or in relation to the particular urgency of the matter.

Before submitting draft implementing technical standards to the Commission, the Authority shall conduct open public consultations and shall analyse the potential related costs and benefits.

Amendment 62

Proposal for a regulation

Article 43 – paragraph 1

Text proposed by the Commission

Amendment

1. The Authority shall, with a view to establishing consistent, efficient and effective supervisory and FIU-related practices, and to ensuring the common, uniform and consistent application of Union law, issue guidelines addressed to all supervisory authorities, FIUs, or all obliged entities and issue recommendations to one or more supervisory authorities or to one or more obliged entities. The Authority shall work closely with other Union institutions, bodies, offices and agencies that are part of the AML/CFT framework in order to enhance efficiency and avoid overlaps.

Amendment 63

Proposal for a regulation

Article 43 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

The Authority shall publish the fact that a supervisory authority does not comply or does not intend to comply with that guideline or recommendation. The Authority may also decide, on a case-by-case basis, to publish the reasons provided by the supervisory authority for not complying with that guideline or recommendation. The supervisory authority shall receive advanced notice of such publication.

The Authority shall publish the fact that a supervisory authority does not comply or does not intend to comply with that guideline or recommendation. The Authority shall publish the reasons provided by the supervisory authority for not complying with that guideline or recommendation. The supervisory authority shall receive advanced notice of such publication.

Amendment 64

Proposal for a regulation

Article 43 – paragraph 3 – subparagraph 3

Text proposed by the Commission

Amendment

If required by that guideline or recommendation, obliged entities shall report, in a clear and detailed way, whether they comply with that guideline or recommendation.

Obliged entities shall report, in a clear and detailed way, whether they comply with that guideline or recommendation.

Amendment 65

Proposal for a regulation

Article 43 – paragraph 3 – subparagraph 3 a (new)

Text proposed by the Commission

Amendment

In the report on the execution of its tasks, referred to in Article 72(2), the Authority shall inform the European Parliament, the Council and the Commission of the guidelines and recommendations that it has issued, stating which national authority has not complied with them and outlining how the Authority intends to ensure that its recommendations and guidelines are complied with in the future.

Amendment 66

Proposal for a regulation

Article 44 – paragraph 3

Text proposed by the Commission

Amendment

3. The Authority may, upon a request from the European Parliament, from the Council or from the Commission provide technical advice to the European Parliament, the Council and the Commission in the areas set out in the legislative acts referred to in Article 1(2).

3. The Authority shall, upon a request from the European Parliament, from the Council or from the Commission provide technical advice to the European Parliament, the Council and the Commission in the areas set out in the legislative acts referred to in Article 1(2).

Amendment 67

Proposal for a regulation

Article 46 – paragraph 4

Text proposed by the Commission

Amendment

4. The General Board may decide to admit observers. In particular, the General Board in FIU composition shall admit as an observer a representative of OLAF, Europol, Eurojust and the EPPO to meetings when matters fall under their respective mandates. The General Board in supervisory composition shall admit a representative nominated by the Supervisory Board of the European Central Bank and a representative of each of the European Supervisory Authorities, where matters within the scope of their respective mandates are discussed.

4. The General Board may decide to admit observers. In particular, the General Board in FIU composition shall admit as observers representatives of OLAF, Europol, Eurojust and the EPPO to its meetings if those bodies so request. The General Board in supervisory composition shall admit a representative nominated by the Supervisory Board of the European Central Bank and a representative of each of the European Supervisory Authorities, where matters within the scope of their respective mandates are discussed.

Amendment 68

Proposal for a regulation

Article 48 – paragraph 1

Text proposed by the Commission

Amendment

1. When carrying out the tasks conferred upon them by this Regulation, the members of the General Board in both compositions referred to in Article 46(2) points (a) and (b) and (3) points (a) and (b) shall act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions from Union institutions, bodies, offices nor agencies from any government or any other public or private body.

1. When carrying out the tasks conferred upon them by this Regulation, the members of the General Board in both compositions referred to in Article 46(2) points (a) and (b) and (3) points (a) and (b) shall act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions from Union institutions, bodies, national supervisors, offices nor agencies from any government or any other public or private body.

Amendment 69

Proposal for a regulation

Article 48 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States, Union institutions, agencies, offices or bodies, and any other public or private body, shall not seek to influence the members of the General Board in the performance of its tasks.

2. Member States, Union institutions, agencies, offices or bodies, national supervisors, and any other public or private body, shall not seek to influence the members of the General Board in the performance of its tasks.

Amendment 70

Proposal for a regulation

Article 48 – paragraph 3

Text proposed by the Commission

Amendment

3. The General Board shall lay down, in its Rules of Procedure, the practical arrangements for the prevention and the management of conflict of interest.

3. The General Board shall lay down, in its Rules of Procedure, the practical arrangements for the prevention and the management of conflict of interest so that the Authority's ability to carry out high quality supervision, launch investigations and impose administrative pecuniary sanctions throughout the Union, as specified in Article 21 and 22, is ensured.

Amendment 71

Proposal for a regulation

Article 52 – paragraph 3

Text proposed by the Commission

Amendment

3. The five members of the Executive Board referred to in paragraph 1, point (b), shall be selected following an open selection procedure which shall be published in the Official Journal of the European Union. They shall be appointed by the General Board based on the shortlist drawn by the Commission. The selection shall respect the principles of experience, qualification, and, to the extent possible, gender and geographical balance.

3. The five members of the Executive Board referred to in paragraph 1, point (b), shall be selected following an open selection procedure which shall be published in the Official Journal of the European Union. They shall be appointed by the General Board based on a gender-balanced shortlist drawn by the Commission at the end of a hearing and approval procedure carried out by the European Parliament. The selection shall respect the principles of experience, qualification, gender and geographical balance.

Amendment 72

Proposal for a regulation

Article 52 – paragraph 7 – introductory wording

Text proposed by the Commission

Amendment

7. During a period of one year after ceasing to hold office, the former members of the Executive Board, including the Chair of the Authority, are prohibited from engaging in a gainful occupational activity with

7. During a period of one year for the members of the Executive Board and two years for the Chair of the Authority after ceasing to hold office, the former members and Chair are prohibited from engaging in a gainful occupational activity with

Amendment 73

Proposal for a regulation

Article 56 – paragraph 1

Text proposed by the Commission

Amendment

1. The Chair of the Authority shall be selected on the basis of merit, skills, knowledge, recognised standing and experience in the area of anti-money laundering and countering the financing of terrorism and other relevant qualification, following an open selection procedure which shall be published in the Official Journal of the European Union. The Commission shall draw up a shortlist of two qualified candidates for the position of the Chair of the Authority. The Council, after approval by the European Parliament, shall adopt an implementing decision to appoint the Chair of the Authority.

1. The Chair of the Authority shall be selected on the basis of merit, skills, knowledge, recognised standing and experience in the area of anti-money laundering and countering the financing of terrorism and other relevant qualification, following an open selection procedure which shall respect the gender balance principle and be published in the Official Journal of the European Union. The Commission shall draw up a gender- balanced shortlist of two qualified candidates for the position of the Chair of the Authority. The Council, at the end of a hearing and approval procedure by the European Parliament, shall adopt an implementing decision to appoint the Chair of the Authority.

Amendment 74

Proposal for a regulation

Article 56 – paragraph 2

Text proposed by the Commission

Amendment

2. If the Chair of the Authority no longer fulfils the conditions required for the performance of his or her duties or has been guilty of serious misconduct, the Council may, following a proposal by the General Board in either composition, adopt an implementing decision to remove the Chair of the Authority from office. The Council shall act by qualified majority.

2. If the Chair of the Authority no longer fulfils the conditions required for the performance of his or her duties or has been guilty of serious misconduct, the Council may, following a proposal by the General Board in either composition, and after approval of the European Parliament, adopt an implementing decision to remove the Chair of the Authority from office. The Council shall act by qualified majority.

Amendment 75

Proposal for a regulation

Article 58 – paragraph 4

Text proposed by the Commission

Amendment

4. The Executive Director shall be selected on the grounds of merit and documented high-level administrative, budgetary and management skills, following an open selection procedure which shall be published in the Official Journal of the European Union, and, as appropriate, other press or internet sites. The Commission shall draw up a shortlist of two qualified candidates for the position of the Executive Director. The Executive Board shall appoint the Executive Director.

4. The Executive Director shall be selected on the grounds of merit and documented high-level administrative, budgetary and management skills, following an open selection procedure which respects the gender balance principle, shall be published in the Official Journal of the European Union, and, as appropriate, other press or internet sites. The Commission shall draw up a gender-balanced shortlist of two qualified candidates for the position of the Executive Director, submitted to the European Parliament for approval. The Executive Board shall appoint the Executive Director from the approved shortlist.

Amendment 76

Proposal for a regulation

Article 58 – paragraph 5 – subparagraph 1

Text proposed by the Commission

Amendment

The Executive Director may be removed from office by the Executive Board on proposal by the Commission.

The Executive Director may be removed from office by the Executive Board on proposal by the Commission or the European Parliament.

Amendment 77

Proposal for a regulation

Article 59 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. The Executive Director shall be in charge of the day-to-day management of the Authority and shall aim to ensure gender balance within the Authority. In particular, the Executive Director shall be responsible for:

1. The Executive Director shall be in charge of the day-to-day management of the Authority and shall aim to ensure gender balance within the Authority at all levels of staff. In particular, the Executive Director shall be responsible for:

Amendment 78

Proposal for a regulation

Article 68 – paragraph 7

Text proposed by the Commission

Amendment

7. The Executive Director shall submit to the European Parliament, at the latter's request, any information required for the smooth application of the discharge procedure for the financial year N, in accordance with Article 261(3) of Regulation (EU, Euratom) 2018/1046.

7. The Executive Director shall submit to the European Parliament, at the latter's request, any information required for the smooth application of the discharge procedure, in accordance with Article 261(3) of Regulation (EU, Euratom) 2018/1046.

Amendment 79

Proposal for a regulation

Article 68 – paragraph 8

Text proposed by the Commission

Amendment

8. On a recommendation from the Council acting by a qualified majority, the European Parliament shall, before 15 May of year N + 2, give a discharge to the Executive Director in respect of the implementation of the budget for year N.

8. On a recommendation from the Council acting by a qualified majority, the European Parliament shall, before 15 May of year N + 2, consider whether to give a discharge to the Executive Director in respect of the implementation of the budget for year N.

Amendment 80

Proposal for a regulation

Article 68 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

8 a. By 1 October each year the Executive Director shall submit to the European Parliament detailed follow-up information addressing the main recommendations made in the discharge decision taken earlier that year.

Amendment 81

Proposal for a regulation

Article 70 – paragraph 2

Text proposed by the Commission

Amendment

2. The Authority shall accede to the Interinstitutional Agreement concerning internal investigations by OLAF and shall immediately adopt appropriate provisions for all staff of the Authority.

2. By the end of 2024, the Authority shall have acceded to the Interinstitutional Agreement concerning internal investigations by OLAF and shall have immediately adopted appropriate provisions for all staff of the Authority.

Amendment 82

Proposal for a regulation

Article 72 – paragraph 2

Text proposed by the Commission

Amendment

2. The Authority shall submit on an annual basis to the European Parliament, to the Council, and to the Commission a report on the execution of the tasks conferred on it by this Regulation, including information on the planned evolution of the structure and amount of the supervisory fees referred to in Article 66. The Chair of the Authority shall present that report in public to the European Parliament.

2. The Authority shall submit on an annual basis to the European Parliament, to the Council, and to the Commission a report on the execution of the tasks conferred on it by this Regulation, including information on the planned evolution of the structure and amount of the supervisory fees referred to in Article 66, as well on guidelines and recommendations it has issued following the procedure set out in Article 43.The Chair of the Authority shall present that report in public to the European Parliament.

Amendment 83

Proposal for a regulation

Article 72 – paragraph 4

Text proposed by the Commission

Amendment

4. The Authority shall reply orally or in writing to questions put to it by the European Parliament.

4. The Authority shall reply orally or in writing to questions put to it by the European Parliament as soon as possible and in any case within five weeks of their notification to the Authority.

Amendment 84

Proposal for a regulation

Article 75 – paragraph 3

Text proposed by the Commission

Amendment

3. For the purpose of carrying out the tasks conferred on it by this Regulation, the Authority shall be authorised, within the limits and under the conditions set out in the acts referred to in Article 1(2), to exchange information with national or Union authorities and bodies in the cases where these acts allow financial supervisors to disclose information to those entities or where Member States may provide for such disclosure under the relevant Union law.

Amendment 85

Proposal for a regulation

Article 79 – paragraph 1

Text proposed by the Commission

Amendment

Where relevant for the fulfilment of the tasks referred to in Sections 3 and 6 of Chapter II, the Authority may participate in existing cooperation arrangements established in one or across several Member States by supervisory authorities or FIUs, where such arrangements involve, inter alia, cooperation and information exchange between the aforementioned authorities and selected obliged entities. Participation of the Authority shall be subject to consent of the relevant national authority that has established such arrangement.

Where relevant for the fulfilment of the tasks referred to in Sections 3 and 6 of Chapter II, the Authority shall participate in existing cooperation arrangements established in one or across several Member States by supervisory authorities or FIUs, where such arrangements involve, inter alia, cooperation and information exchange between the aforementioned authorities and selected obliged entities.

Amendment 86

Proposal for a regulation

Article 80 – paragraph 1

Text proposed by the Commission

Amendment

1. The Authority may conclude working arrangements with Union institutions, Union decentralised agencies and other Union bodies, acting in the field of law enforcement and judicial cooperation. Those working arrangements may be of a strategic or technical nature, and shall in particular aim to facilitate cooperation and the exchange of information between the parties thereto. The working arrangements shall neither form the basis for allowing the exchange of personal data nor shall bind the Union or its Member States.

Amendment 87

Proposal for a regulation

Article 80 – paragraph 2

Text proposed by the Commission

Amendment

2. The Authority shall establish and maintain a close relationship with OLAF, Europol, Eurojust, and the EPPO. To that end, the Authority shall conclude separate working arrangements with OLAF, Europol, Eurojust, and the EPPO setting out the details of their cooperation. The relationship shall aim in particular to ensure the exchange of strategic information and trends in relation to money laundering and terrorist financing threats facing the Union.

2. The Authority shall establish and maintain a close relationship with OLAF, Europol, Eurojust, and the EPPO. To that end, by the end of 2024, the Authority shall have concluded separate working arrangements with OLAF, Europol, Eurojust, and the EPPO setting out the details of their cooperation. The relationship shall aim in particular to ensure the exchange of strategic information and trends in relation to money laundering and terrorist financing threats facing the Union.

Amendment 88

Proposal for a regulation

Article 84 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

When drafting guidelines and recommendations in accordance with Article 43, having a significant impact on the protection of personal data, the Authority shall, after being authorized by the Commission, consult the European Data Protection Supervisor established by Regulation (EU) 2018/1725. The Authority may also invite national data protection authorities as observers in the process of drafting such guidelines and recommendations.

When drafting guidelines and recommendations in accordance with Article 43, having a significant impact on the protection of personal data, the Authority shall consult the European Data Protection Supervisor established by Regulation (EU) 2018/1725. The Authority may also invite national data protection authorities as observers in the process of drafting such guidelines and recommendations.

Amendment 89

Proposal for a regulation

Article 86 – paragraph 6

Text proposed by the Commission

Amendment

6. A delegated act adopted pursuant to Article 25 and Article 65 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

6. A delegated act adopted pursuant to Article 25 and Article 65 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

Amendment 90

Proposal for a regulation

Article 88 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. By 31 December 2029, and every five years thereafter, the Commission shall assess the Authority’s performance in relation to its objectives, mandate, tasks and location(s), in accordance with the Commission's guidelines. The evaluation shall, in particular, address:

1. By 31 December 2028, and every five years thereafter, the Commission shall assess the Authority’s performance in relation to its objectives, mandate, tasks and location(s), in accordance with the Commission's guidelines. The evaluation shall, in particular, address:

Amendment 91

Proposal for a regulation

Article 88 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) the impact of the activities related to support and coordination of FIUs, and in particular the coordination of the joint analyses of cross-border activities and transactions conducted by FIUs;

(c) the impact of the activities related to support and coordination of FIUs, and in particular the organisation and coordination of the joint analyses of cross-border activities and transactions conducted by FIUs;

Amendment 92

Proposal for a regulation

Article 88 – paragraph 1 – point j a (new)

Text proposed by the Commission

Amendment

(j a) the effectiveness of the Authority’s anti-fraud measures;

Amendment 93

Proposal for a regulation

Article 88 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) it is appropriate to confer additional tasks in the area of support and coordination of the work of FIUs, in particular whether it is appropriate for the EU FIUs’ Platform to become a Union-level FIU that will better integrate national FIUs and be competent for receiving reports of suspicious transactions directly from all obliged entities in the Union, in which case the opinion of the Authority shall be annexed to the evaluation; if the EU FIUs’ platform becomes a Union-level FIU, the Authority and Member States´ FIUs shall constitute a Union System of FIUs in order to prevent, detect and effectively combat money laundering and terrorist financing in the internal market, and the Union System of FIUs shall perform their tasks and carry out their activities in accordance with this Regulation and applicable Union law.

Amendment 94

Proposal for a regulation

Article 88 – paragraph 3

Text proposed by the Commission

Amendment

3. On the occasion of every second evaluation, there shall be an assessment of the results achieved by the Authority having regard to its objectives, mandate and tasks, including an assessment of whether the continuation of the Authority is still justified with regard to these objectives, mandate and tasks. That assessment shall consider that the work carried out by the Authority always involves national home affairs and judicial authorities, as well as several already existing Union agencies, and that its performance therefore depends on the effectiveness of the Union AML/CFT system as a whole;

Amendment 95

Proposal for a regulation

Article 88 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3a. The evaluation and review of this Regulation shall be coordinated with the evaluation and review of the other files in the comprehensive package aiming at strengthening the Union’s AML/CFT framework, including Directive [please insert reference – proposal for 6th Anti-Money Laundering Directive], Regulation [please insert reference – proposal for a recast of Regulation (EU) 2015/847] and Regulation [please insert reference – proposal for the Anti-Money Laundering Regulation].

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) 1094/2010, (EU) 1095/2010

References

COM(2021)0421 – C9-0340/2021 – 2021/0240(COD)

Committees responsible

Date announced in plenary

ECON

4.10.2021

LIBE

4.10.2021

Opinion by

Date announced in plenary

CONT

21.10.2021

Rule 58 – Joint committee procedure

Date announced in plenary

20.1.2022

Discussed in committee

31.3.2022

Date adopted

11.5.2022

Result of final vote

–:

Members present for the final vote

Matteo Adinolfi, Gilles Boyer, Olivier Chastel, Caterina Chinnici, Lefteris Christoforou, Corina Crețu, Ryszard Czarnecki, José Manuel Fernandes, Luke Ming Flanagan, Daniel Freund, Isabel García Muñoz, Monika Hohlmeier, Jean-François Jalkh, Mislav Kolakušić, Joachim Kuhs, Ryszard Antoni Legutko, Claudiu Manda, Alin Mituța, Jan Olbrycht, Younous Omarjee, Markus Pieper, Michèle Rivasi, Sándor Rónai, Petri Sarvamaa, Angelika Winzig, Lara Wolters, Tomáš Zdechovský

Substitutes present for the final vote

Katalin Cseh, Viola Von Cramon-Taubadel

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

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