Art. 23 Notification to the supervisor in case the parent undertaking is an obliged entity | RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches | AML

This article is the procedural counterpart to Article 22, which sets out the criteria for determining which entity within a non-group structure acts as the parent undertaking in the Union.

Article 23 deals specifically with the scenario where that identified parent undertaking is itself an obliged entity, and it lays out the full notification and supervisory decision-making process that must follow.

The article walks through the chain of communication — from the obliged entity notifying its home supervisor and fellow obliged entities, through the supervisor's review and formal decision, and finally back to the entity and wider structure — including provisions for disagreements between supervisors and the ongoing obligation to notify changes.

Important points:

Notify your role as parent undertaking to the home supervisor and all other obliged entities in the Union within 28 calendar days of determination, including the reasons; failure to do so triggers measures under Directive (EU) 2024/1640.
The home supervisor is required to issue a formal decision on the identification of the parent undertaking within 2 months of receiving the complete notification, and may determine that a different entity should hold that role.
Notify the home supervisor of any changes to the information originally communicated at least one month before implementing the change.

1. In case the identified parent undertaking in the Union is an obliged entity, this entity shall notify its role as parent undertaking in the Union to the home supervisor and all the obliged entities in 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 shall include all the following information:
  1. summary overview and explanations on the structure, roles, responsibilities and activities of the parent undertaking and all the other obliged entities of the structure in the Union
  2. any other information considered necessary by the supervisor for evaluating the adequacy of the identification of the obliged entity as parent undertaking.
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 structure in the Union and the Authority of such notification.
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, they 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 structure in the Union and 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 structure 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 obliged entity 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 structure in the Union 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.