Art. 48 General provisions relating to reliance on other obliged entities | Anti-money laundering regulation (AMLR) | AML

This article governs the practice of "reliance," where one obliged entity outsources the performance of certain customer due diligence steps to another obliged entity, rather than conducting them independently.

It sets out the conditions under which this is permissible, including requirements around the standards the relied-upon entity must meet and how it must be supervised.

The article also addresses the specific scenario of reliance within a group structure, where group-wide policies can satisfy the requirements, and draws a hard boundary around reliance on entities in high-risk third countries identified elsewhere in the regulation.

Critically, the article makes clear that delegating the task does not delegate the liability.

Important points:

Rely on another obliged entity for customer due diligence only where that entity applies equivalent standards and is subject to compatible AML/CFT supervision.
The ultimate responsibility for meeting customer due diligence requirements always remains with the obliged entity doing the relying, regardless of the arrangement.
Reliance on obliged entities in high-risk third countries identified under Section 2 of this Chapter is prohibited, except where the relied-upon entity is a branch or subsidiary within the same group and all group-level conditions are met.

1. Obliged entities may rely on other obliged entities, whether located in a Member State or in a third country, to meet the customer due diligence requirements laid down in Article 20(1), points (a), (b) and (c), provided that:
  1. the other obliged entities apply customer due diligence requirements and record-keeping requirements laid down in this Regulation, or equivalent when the other obliged entities reside or are established in a third country;
  2. compliance with AML/CFT requirements by the other obliged entities is supervised in a manner consistent with Chapter IV of Directive (EU) 2024/1640.
2. The ultimate responsibility for meeting the customer due diligence requirements shall remain with the obliged entity which relies on another obliged entity.
1. When deciding to rely on other obliged entities located in third countries, obliged entities shall take into consideration the geographical risk factors listed in Annexes II and III and any relevant information or guidance provided by the Commission, or by AMLA or other competent authorities.
1. In the case of obliged entities that are part of a group, compliance with the requirements of this Article and of Article 49 may be ensured through group-wide policies, procedures and controls provided that all the following conditions are met:
  1. the obliged entity relies on information provided solely by an obliged entity that is part of the same group;
  2. the group applies AML/CFT policies and procedures, customer due diligence measures and rules on record-keeping that are fully in compliance with this Regulation, or with equivalent rules in third countries;
  3. the effective implementation of the requirements referred to in point (b) of this paragraph is supervised at group level by the supervisory authority of the home Member State in accordance with Chapter IV of Directive (EU) 2024/1640 or of the third country in accordance with the rules of that third country.
1. Obliged entities shall not rely on obliged entities established in third countries identified pursuant to Section 2 of this Chapter. However, obliged entities established in the Union whose branches and subsidiaries are established in those third countries may rely on those branches and subsidiaries, where all the conditions laid down in paragraph 3, are met.