Art. 7 Notification of the decision to selected obliged entities | ITS on cooperation for the purposes of direct supervision | AML

This article governs what happens immediately after the selection process concludes, specifically how the Authority communicates its decisions to selected obliged entities.

Building directly on the selection process established in Article 13 of Regulation (EU) 2024/1620, it sets out the Authority's notification obligations and the minimum content that every such notification must contain.

Beyond simply announcing the outcome, the article ensures that selected obliged entities are fully informed of their rights and the procedural avenues available to them, including the ability to challenge the decision.

Important points:

The Authority is required to notify each selected obliged entity in writing, without undue delay, after informing financial supervisors and simultaneously communicating the outcome to relevant non-AML/CFT authorities.
The written notification must cover a defined set of elements, including the entity's rights and obligations, how pending supervisory procedures will proceed, due process rights (such as the right to be heard, legal representation, and access to the case file), and the right to request judicial review.
The Authority is required to inform relevant financial supervisors, before the publication of the list of selected obliged entities, of any review of the outcome of the selection process.

1. Following the selection process referred to in Article 13 of Regulation (EU) 2024/1620, and after informing the financial supervisors, the Authority shall, without undue delay, notify each selected obliged entity of the decision resulting from the selection process in respect of that selected obliged entity.
2. The Authority shall concomitantly communicate this outcome to the relevant non-AML/CFT authorities pursuant to Article 13(5) of Regulation (EU) 2024/1620.
1. The notification referred to in paragraph 1 shall:
  1. be provided in writing;
  2. set out the rights and obligations of the selected obliged entity stemming from the decision;
  3. explain how any pending supervisory procedures or investigations involving the selected obliged entity are to be taken forward;
  4. indicate the contact point and time limit for submitting technical observations or proposed minor factual corrections with respect to the draft decision;
  5. indicate the contact point and time limit for requesting the substantive review, specifying the applicable due process rights of the selected obliged entity, including the form in which the right to be heard may be exercised, the right to legal representation, the choice of language and the right to access the case file; such due process rights may be specified by way of reference to the relevant AMLA framework decision;
  6. refer to the right to request a judicial review.
2. The Authority shall not be obliged to take into account technical observations of requests for substantive review received after the time limit set.
1. The Authority shall inform the relevant financial supervisors, without undue delay and before the publication of the list of selected obliged entities, of any review of the outcome of the selection process.