Source: AMLA consultation paper draft
- Anti-money laundering
AMLR supplemental acts
- RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches
Article 2 Definitions
This is a draft act
This text has been parsed from the AMLA consultation paper draft as published on 16 April 2026. While we run a suite of validations, the automated parsing can result in errors. Also, before it is finally adopted by the Commission, its wording, numbering and references may change, and entire articles might be removed or added.
Summary What does Article 2 of the RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches say?
This is a definitions article that supplements, rather than replaces, the definitions already established in the three related legislative acts referenced — Regulation (EU) 2024/1624, Regulation (EU) 2024/1620, and Directive (EU) 2024/1640.
Its purpose is to establish a shared vocabulary specific to this Regulation, particularly around the different types of organisational arrangements between obliged entities that fall short of being a formal group.
The definitions introduced here — structure, network, partnership, and franchise — are foundational to understanding how the rest of this Regulation applies beyond traditional group structures, and they feed directly into later articles dealing with group-equivalent requirements.
Important points:
- Five definitions are introduced: control function, structure, network, partnership, and franchise — all of which are used throughout the rest of this Regulation.
- The definitions of network, partnership, and franchise all share a common thread: they require at least two obliged entities operating under common ownership, management, or compliance control.
- A "structure" is deliberately defined to exclude formal groups with a parent undertaking under Regulation (EU) 2024/1624, carving out a distinct category of cooperative arrangements between obliged entities.
Springlex's summary of the article, a reading aid, not a substitute for the legal text.
For the purpose of this Regulation, in addition to the definitions set out in Article 2(1) of Regulation (EU) 2024/1624, Article of 2(1) of Regulation (EU) 2024/1620 and Article 2 of Directive (EU) 2024/1640, the following definitions shall apply:
‘control function’ means a function that is independent from the commercial functions it controls and that is responsible to provide an objective assessment of the obliged entity’s risks, review or report on those, including, but not limited to, the risk management function, the compliance function and the internal audit function;
‘structure’ means any form of organisation, agreement or similar that:
includes at least two obliged entities;
is not a group with a parent undertaking within the meaning of Article 2(1), point (42) of Regulation (EU) 2024/1624; and
has the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities.
‘network’ means a structure established by two or more entities based on an agreement or a contract or similar where:
at least two obliged entities carry out their activities in a framework which aims at cooperation and common profit- or cost-sharing, or has in place a common business strategy, or shares common compliance policies, procedures or controls, or uses a common brand or marketing name; and
the relationship is established in a structure under common ownership, common management or common compliance control.
‘partnership’ means an agreement, a contract or similar where:
at least two obliged entities exercise an activity in common with a view to profit or cost-sharing or achieving a common purpose; and
the relationship is established in a structure under common ownership, common management or common compliance control.
‘franchise’ means an agreement, a contract, a framework or any other arrangement where:
at least two obliged entities establish a relationship between each other and/or with a third entity in exchange for direct or indirect financial benefits exploiting a brand, the know‑how, and/or business systems owned or managed by a franchisor for the purposes of marketing specific types of goods and/or services; and
the relationship is established in a structure under common ownership, common management or common compliance control.
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
franchise
- at least two obliged entities establish a relationship between each other and/or with a third entity in exchange for direct or indirect financial benefits exploiting a brand, the know‑how, and/or business systems owned or managed by a franchisor for the purposes of marketing specific types of goods and/or services; and
- the relationship is established in a structure under common ownership, common management or common compliance control.
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
partnership
- at least two obliged entities exercise an activity in common with a view to profit or cost-sharing or achieving a common purpose; and
- the relationship is established in a structure under common ownership, common management or common compliance control.
Definition
group
Definition
structure
- includes at least two obliged entities;
- is not a group with a parent undertaking within the meaning of Article 2(1), point (42) of Regulation (EU) 2024/1624; and
- has the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities.
Definition
network
- at least two obliged entities carry out their activities in a framework which aims at cooperation and common profit- or cost-sharing, or has in place a common business strategy, or shares common compliance policies, procedures or controls, or uses a common brand or marketing name; and
- the relationship is established in a structure under common ownership, common management or common compliance control.
Definition
control function