Art. 5 Data quality | ITS on cooperation for the purposes of direct supervision | AML

This article directly follows Article 4, which establishes the data collection obligations, and sets out the data quality standards that must be met before financial supervisors submit their collected data points to the Authority.

The article governs the integrity of the data submission process, requiring financial supervisors to apply a three-tier checking process — validation rules, data quality checks, and plausibility checks — before any data reaches the Authority.

It also establishes clear consequences for non-compliant data, and sets out what happens when submitted data needs to be materially revised after the fact.

Important points:

Financial supervisors are required to apply validation rules, data quality checks, and plausibility checks to data before submission, with the Authority refusing any data that fails these standards.
The Authority is prohibited from altering information received from financial supervisors, preserving the integrity and ownership of the submitted data.
Where gaps or data quality issues exist, financial supervisors must acknowledge and explain them to the Authority rather than omitting the data entirely.

1. Before submitting the data points referred to in Article 4(1) to the Authority, financial supervisors shall apply:
  1. validation rules;
  2. data quality checks;
  3. plausibility checks.
2. The rules and checks shall be defined jointly by the Authority and the financial supervisors. The Authority shall share with the financial supervisors the plausibility checks referred to in point (c).
1. The Authority shall not alter the information received from financial supervisors. Information that does not meet the validation rules or data quality checks referred to in paragraph 1 shall not be accepted through the delivery channel. The Authority shall refuse the information referred to in Article 2(1) that have identified inconsistencies during plausibility checks.
1. The Authority shall provide the data exchange specifications for financial supervisors to verify the compliance of the data they intend to submit with the validation rules and data quality checks referred to in paragraph 1.
1. The data points referred to in Article 4(1) shall be complete. Any existing gaps shall be acknowledged and explained to the Authority. Where the data quality for a given information cannot be warranted, financial supervisors shall accompany that information with the corresponding explanations.
1. Where a significant revision is necessary, the financial supervisor shall resubmit the data points referred to in Article 4(1) in accordance with the procedure shared with the financial supervisors by the Authority.
2. For the purposes of the previous subparagraph, ‘significant revision’ means any revision of one or more data points which significantly impacts the periodic assessment made using these data points at obliged entity level.