Art. 20 Notification to the supervisor | RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches | AML

This article sets out the notification and approval process that follows from the identification of a parent undertaking in the Union within a group whose head office is located outside the Union — a determination made under Articles 17 and 18.

It establishes a structured chain of communication between the identified entity, its home supervisor, other supervisors across the Union, and the Authority, covering the initial notification, the supervisor's decision, and the ongoing obligation to report changes.

Failure to notify triggers measures under Directive (EU) 2024/1640.

Important points:

Notify your role as parent undertaking in the Union to your home supervisor and all other obliged entities in the group within 28 calendar days of determination, including detailed reasons covering your sufficient prominence, understanding of operations, and responsibility for group-wide requirements.
The home supervisor is required to decide on the identification of the parent undertaking within 2 months of receiving the complete notification, and may redirect the process to a different home supervisor if it determines a different entity should hold that role.
Any change to the information originally notified must be communicated to the home supervisor at least one month before that change is implemented.

1. The identified obliged entity shall notify its role as parent undertaking in the Union as referred to in Article 2(1) number (42)(b) of Regulation (EU) 2024/1624 to the home supervisor and all the other obliged entities in the Union of the group whose head office is located outside of the Union without undue delay and in any case no later than 28 calendar days after such determination, including the reasons thereof. If a parent undertaking fails to notify to the supervisor appropriate measures pursuant to Section 4 of Chapter IV of Directive (EU) 2024/1640 shall be taken.
1. The notification by the identified parent undertaking in the Union shall include all the following information:
  1. summary overview and explanations on the structure, roles, responsibilities and activities of the parent undertaking in the Union and all the other obliged entities of the group in the Union
  2. detailed reasons of the determination of sufficient prominence in the Union
  3. detailed reasons of the determination of sufficient understanding of operations in the Union
  4. detailed reasons of the responsibility to implement group-wide requirements
  5. any other information considered necessary by the supervisor for evaluating the adequacy of the identification of the obliged entity as parent undertaking in the Union.
2. Upon receipt of the notification, the home supervisor of the parent undertaking in the Union shall confirm receipt of the notification to the identified obliged entity in the Union and inform all the supervisors of the other obliged entities of the group in the Union and the Authority of such notification. In case the supervisor is a self-regulatory body, the self-regulatory body shall inform also the public authority overseeing it.
1. The home supervisor shall decide on the identification of the parent undertaking in the Union within 2 months from receipt of the complete notification from the identified parent undertaking in the Union. The supervisors of the obliged entities in the Union shall, without undue delay and in any case within 28 calendar days from receipt of the complete notification from the home supervisor, provide each other with any information which is essential or relevant for the assessment.
2. The home supervisor may determine that the identified parent undertaking in the Union shall be a different one and shall provide reasons for this assessment. It shall then transmit the notification mentioned in paragraphs 1 and 2 of this Article immediately, and in any case within one week from the date of receipt of the notification, to the appropriate home supervisor. The latter home supervisor shall apply the procedure provided in the first subparagraph of this paragraph accordingly.
3. In case of disagreements between two or more supervisors on the identification of the parent undertaking in the Union, supervisors may refer the matter to the Authority and request its assistance in accordance with Article 33 of Regulation (EU) 2024/1620 for the financial sector or in accordance with Article 38 of Regulation (EU) 2024/1620 for the non-financial sector.
4. Subparagraph 3 shall not apply in cases where the identified obliged entity is a selected obliged entity under direct supervision of the Authority.
1. The home supervisor shall notify the decision mentioned in paragraph 3 of this Article to the identified parent undertaking in the Union without undue delay. It shall also inform all the other supervisors of the other entities of the group in the Union, the Authority of such decision and, in case the supervisor is a self-regulatory body, the self-regulatory body shall inform also the public authority overseeing it.
1. The identified parent undertaking in the Union shall inform immediately all the other obliged entities of the group in the Union of the decision mentioned in paragraph 3 of this Article.
1. In the event of a change to any of the information communicated pursuant to paragraphs 1 and 2, the parent undertaking shall notify this change to the home supervisor that received the initial notification at least one month before implementing the change. This supervisor shall inform all the supervisors of the entities of the group in the Union and the Authority of such notification and review the notification in accordance with this Article. In case the supervisor is a self-regulatory body, the self-regulatory body shall inform also the public authority overseeing it.