Source: OJ L, 2024/1620, 19.6.2024Current language: EN
- Anti-money laundering
Basic legislative acts
- Anti-money laundering authority regulation (AMLAR)
Article 102 Evaluation and review
Summary What does Article 102 of the Anti-money laundering authority regulation (AMLAR) say?
This article establishes a formal review mechanism whereby the Commission is required to periodically assess the overall performance of the Authority.
It is a comprehensive evaluation clause covering virtually every dimension of the Authority's operation — from its governance and supervisory effectiveness to its cooperation with other bodies and its cost efficiency.
Notably, every second report must include a deeper assessment of whether the Authority's continued existence remains justified in light of its mandate and achievements.
The reports are forwarded to the European Parliament and the Council, ensuring institutional oversight of the Authority at the highest level.
Important points:
- The Commission is required to produce a performance report on the Authority by 31 December 2030, and every five years thereafter, covering areas including supervisory effectiveness, governance, sanctioning powers, and cooperation with other bodies.
- Each report must also examine whether the Authority's resources are adequate and whether it should be granted additional supervisory or sanctioning powers, including over non-financial sector obliged entities.
- Every second report must include an assessment of whether the continuation of the Authority is still justified given its objectives, mandate, tasks and powers.
Springlex's summary of the article, a reading aid, not a substitute for the legal text.
By 31 December 2030, and every five years thereafter, the Commission shall draw up a report on the Authority’s performance in relation to its objectives, mandate, tasks and location, in accordance with the Commission’s guidelines. That report shall, in particular, address:
the possible need to amend the mandate of the Authority, and the financial implications of any such amendment;
the impact of all supervisory activities and tasks of the Authority on the interests of the Union as a whole, and specifically the effectiveness of:
supervisory tasks and activities related to direct supervision of selected obliged entities;
indirect supervision of non-selected obliged entities;
indirect oversight of other obliged entities;
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;
the impartiality, objectivity and autonomy of the Authority;
the appropriateness of governance arrangements, including the composition of, and voting arrangements in, the Executive Board and its relationship with the General Board;
the cost effectiveness of the Authority, if appropriate, separately in relation to its distinct sources of funding;
the effectiveness of the recourse mechanism against decisions of the Authority and the independence and accountability arrangements applicable to the Authority;
the effectiveness of cooperation and information sharing arrangements between the Authority and non-AML/CFT authorities;
the interaction between the Authority and the other Union supervisory authorities and bodies, including the EBA, Europol, Eurojust, OLAF and the EPPO;
the scope of direct supervision and the criteria and methodology for the assessment and selection of entities for direct supervision;
the effectiveness of the Authority’s supervisory and sanctioning powers;
the effectiveness of, and convergence in, supervisory practices reached by supervisory authorities and the role of the Authority therein.
The report referred to in paragraph 1 shall also examine whether:
the resources of the Authority are adequate to carry out its responsibilities;
it is appropriate to confer on the Authority additional supervisory tasks regarding obliged entities in the non-financial sector, specifying, as appropriate, the types of entities that should be subject to the additional supervisory tasks;
it is appropriate to confer on the Authority additional tasks in the area of support and coordination of the work of FIUs;
it is appropriate to confer on the Authority additional sanctioning powers.
In every second report, the Commission shall conduct a thorough review of the results achieved by the Authority having regard to its objectives, mandate, tasks and powers, including an assessment of whether the continuation of the Authority is still justified with regard to these objectives, mandate and tasks.
The report and any accompanying proposals, as appropriate, shall be forwarded to the European Parliament and to the Council.
Springlex and this text is meant purely as a documentation tool and has no legal effect. No liability is assumed for its content. The authentic version of this act is the one published in the Official Journal of the European Union.
Definition
crypto-asset services
Definition
supervisor
Definition
financial mixed activity holding company
Definition
non-selected obliged entity
Definition
crypto-asset service provider
Definition
credit institution
- a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013;
- a branch of a credit institution, as defined in Article 4(1), point (17), of Regulation (EU) No 575/2013, when located in the Union, whether its head office is located in a Member State or in a third country;
Definition
parent undertaking
- for groups whose head office is located in the Union, an obliged entity that is a parent undertaking as defined in Article 2, point (9), of Directive 2013/34/EU that is not itself a subsidiary of another undertaking in the Union, provided that at least one subsidiary undertaking is an obliged entity;
- for groups whose head office is located outside of the Union, where at least two subsidiary undertakings are obliged entities established in the Union, an undertaking within that group established in the Union that:
- is an obliged entity;
- is an undertaking that is not a subsidiary of another undertaking that is an obliged entity established in the Union;
- has a sufficient prominence within the group and a sufficient understanding of the operations of the group that are subject to the requirements of this Regulation; and
- is given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation;
Definition
selected obliged entity
Definition
crypto-asset
Definition
property
Definition
competent authority
- a Financial Intelligence Unit (FIU);
- a supervisory authority;
- a public authority that has the function of investigating or prosecuting money laundering, its predicate offences or terrorist financing, or that has the function of tracing, seizing or freezing and confiscating criminal assets;
- a public authority with designated responsibilities for combating money laundering or terrorist financing;
Definition
terrorist financing
Definition
group
Definition
money laundering
Definition
financial institution
- an undertaking other than a credit institution or an investment firm, which carries out one or more of the activities listed in points (2) to (12), (14) and (15) of Annex I to Directive 2013/36/EU of the European Parliament and of the Council(32), including the activities of currency exchange offices (bureaux de change), but excluding the activities referred to in point (8) of Annex I to Directive (EU) 2015/2366, or an undertaking the principal activity of which is to acquire holdings, including a financial holding company, a mixed financial holding company and a financial mixed activity holding company;
- an insurance undertaking as defined in Article 13, point (1), of Directive 2009/138/EC of the European Parliament and of the Council(33), insofar as it carries out life or other investment-related assurance activities covered by that Directive, including insurance holding companies and mixed-activity insurance holding companies as defined, respectively, in Article 212(1), points (f) and (g), of Directive 2009/138/EC;
- an insurance intermediary as defined in Article 2(1), point (3), of Directive (EU) 2016/97 where it acts with respect to life insurance and other investment-related insurance services, with the exception of an insurance intermediary that does not collect premiums or amounts intended for the customer and which acts under the responsibility of one or more insurance undertakings or intermediaries for the products which concern them respectively;
- an investment firm as defined in Article 4(1), point (1), of Directive 2014/65/EU of the European Parliament and of the Council(34);
- a collective investment undertaking, in particular:
- an undertaking for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC and its management company as defined in Article 2(1), point (b), of that Directive or an investment company authorised in accordance with that Directive and which has not designated a management company, that makes available for purchase units of UCITS in the Union;
- an alternative investment fund as defined in Article 4(1), point (a), of Directive 2011/61/EU and its alternative investment fund manager as defined in Article 4(1), point (b), of that Directive that fall within the scope set out in Article 2 of that Directive;
- a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 of the European Parliament and of the Council(35);
- a creditor as defined in Article 4, point (2), of Directive 2014/17/EU of the European Parliament and of the Council(36) and in Article 3, point (b), of Directive 2008/48/EC of the European Parliament and of the Council(37);
- a credit intermediary as defined in Article 4, point (5), of Directive 2014/17/EU and in Article 3, point (f), of Directive 2008/48/EC, when holding the funds as defined in Article 4, point (25), of Directive (EU) 2015/2366 in connection with the credit agreement, with the exception of the credit intermediary carrying out activities under the responsibility of one or more creditors or credit intermediaries;
- a crypto-asset service provider;
- a branch of a financial institution referred to in points (a) to (i), when located in the Union, whether its head office is located in a Member State or in a third country;
Definition
self-regulatory body
Definition
third country
Definition
non-AML/CFT authority
- a competent authority as defined in Article 4(1), point (40), of Regulation (EU) No 575/2013 of the European Parliament and of the Council(27);
- the European Central Bank (ECB), when it carries out the tasks conferred on it by Regulation (EU) No 1024/2013;
- a resolution authority designated in accordance with Article 3 of Directive 2014/59/EU;
- a designated authority as defined in Article 2(1), point (18), of Directive 2014/49/EU;
- a competent authority as defined in Article 3(1), point (35), of Regulation (EU) 2023/1114.
Definition
funds
Definition
supervisory authority