Preamble Recitals

Regulation (EU) 2024/1624 aims for harmonisation of the measures to be put in place to prevent money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, its predicate offences, terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and the non- implementation and evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU; at Union level, including when such measures are designed and implemented in a groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; or in a structuremeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. mentioned in Regulation (EU) 2024/1624. Consistent implementation of group-wide anti-money laundering, countering the financing of terrorism and of group-wide requirements to target the non-implementation or evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU; is key to the robust and effective management of risks, especially in a cross-border context.

Minimum requirements for group-wide policies, procedures and controls should be developed, implemented and applied at groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; level in an adequate and consistent manner, while avoiding any risks of compromising anti-money laundering, countering the financing of terrorism requirements as well as preventing the non-implementation or evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU;. Minimum requirements are also applicable to structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. other than groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; when such structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. fulfil the conditions set out in this Regulation. Group-wide policies, procedures and controls should be designed to ensure consistency in the implementation of the group-wide requirements mentioned in Regulation (EU) 2024/1624 such as to enhance governance arrangements, the standing and role of the compliance manager and compliance officer at groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; level, the relations between the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; and the subsidiaries in the Union and in third countriesmeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; as well as the business-wide risk assessments at groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; level.

Group-wide policies, procedures and controls should not result in a derogation for the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union from carrying out the entity level policies, procedures and controls, including its entity-level risk assessment.

Information sharing within groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; and other structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities., such as networksmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control., partnershipsmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control., franchisesmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control. and branches, is a key element to ensure appropriate understanding of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; risks as well as risks of non-implementation and the evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU;. Information sharing should mitigate these risks especially when they are associated with customers and transactions. Among others, the type of information to be shared within the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; and structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. should include information on customers, transactions, services and activities, risk assessments, control functionsmeans 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;, external audits, suspicious transactions or activity reporting, group-wide policies, procedures and controls, and interactions with supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; and competent authoritiesmeans:a Financial Intelligence Unit (FIU);a supervisory authority;a public authority that has the function of investigating or prosecuting money laundering, its predicate offences or terrorist financing, or that has the function of tracing, seizing or freezing and confiscating criminal assets;a public authority with designated responsibilities for combating money laundering or terrorist financing;. In any case information sharing should take into account the requirements set out in Regulation (EU) 2024/1624, Regulation (EU) 2023/1113 and any administrative act of the supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620;.

Obliged entities should use the information shared by other entities in the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; to make, among others, informed decisions on customers, transactions and risk assessments and potentially restrict or refuse to enter into a new relationship or terminate existing business relationshipsmeans a business, professional or commercial relationship connected with the professional activities of an obliged entity, which is set up between an obliged entity and a customer, including in the absence of a written contract and which is expected to have, at the time when the contact is established, or which subsequently acquires, an element of repetition or duration; or restrict or refuse to carry out the execution of occasional transactions in accordance with Regulation (EU) 2024/1624. Furthermore, the information shared within the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; and structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. should be used to prevent and mitigate money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; as well as the non-implementation and evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU; and to inform the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union on the group-wide level risk assessment.

Information sharing should include also ad hoc sharing of newly identified relevant information, such as negative or adverse media reports concerning customers or beneficial ownersmeans any natural person who ultimately owns or controls a legal entity or an express trust or similar legal arrangement; or trends related to the non-implementation or the evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU;.

Information sharing within groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; should not lead to an automatic group-wide acceptance or rejection of a customer or categories of customers and to pursue de-risking practices which might result in circumventing other legal obligations, in particular those laid down in Directive 2014/92/EU of the European Parliament and of the Council or Directive (EU) 2015/2366.

The Union AML/CFT framework applies to a wide variety of obliged entities. Some obliged entities perform transactions, other obliged entities such as real estate agents, lawyers and notaries provide services or activities connected to transactions. For these obliged entities, information sharing requirements should include the information related to the provision of the services or activities under the AML/CFT framework.

Certain aspects of the implementation of the AML/CTF framework involve the collection, analysis, storage and sharing of data, including personal data. The processing of personal data should be permitted only for the purposes of the prevention and management of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances;, terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and the non-implementation or evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU;. Information sharing should be subject to sufficient guarantees in terms of confidentiality, data protection and the use of information as well as fully respecting fundamental rights.

The sharing of information should be proportionate to the type of request for information sharing and be based on a need-to-know assessment. There are, though, regulatory limitations to information sharing within a groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; stemming from Regulation (EU) 2024/1624. First, cases in which information comes from partnerships for information sharingmeans a mechanism that enables the sharing and processing of information between obliged entities and, where applicable, competent authorities referred to in point 44(a), (b) and (c), for the purposes of preventing and combating money laundering, its predicate offences and terrorist financing, whether at national level or on a cross-border basis, and regardless of the form of that partnership.Prominent public functions as referred to in paragraph 1, point (34), shall not be understood as covering middle-ranking or more junior officials.Where justified by their administrative organisation and by risk, Member States may set lower thresholds for the designation of the following prominent public functions:members of governing bodies of political parties represented at regional or local level, as referred to in paragraph 1, point (34)(a)(iii);heads of regional and local authorities, as referred to in paragraph 1, point (34)(a)(viii).Member States shall notify those lower thresholds to the Commission.In relation to paragraph 1, point (34)(a)(vii) of this Article, where justified by their administrative organisation and by risk, Member States may set lower thresholds for the identification of enterprises controlled by regional or local authorities than those defined in Article 3(3), (4), (6) and (7) of Directive 2013/34/EU.Member States shall notify those lower thresholds to the Commission.Where justified by their social and cultural structures and by risk, Member States may apply a broader scope for the designation of siblings as family members of politically exposed persons, as referred to in paragraph 1, point (35)(d).Member States shall notify that broader scope to the Commission., which can only be shared under the conditions set out in Article 75(5) of Regulation (EU) 2024/1624. Second, information mentioned in Article 70(2) of Regulation (EU) 2024/1624 when covered by legal privilege shall not fall under the scope of this Regulation.

Obliged entities in the Union might share information with other entities of the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; or the structuremeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. outside the Union. In this case, this Regulation clarifies that in cases of restrictions or prohibitions to the sharing of information to third countriesmeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime;, the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union and the other obliged entities of the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; or structuremeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. in the Union need to assess the restrictions and prohibitions and communicate them to the supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; in the Union. Similarly, in cases where restrictions or prohibitions on the sharing of information exist from third countriesmeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; to the Union, including to supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; in the Union, obliged entities in the Union need to assess restrictions or prohibitions and communicate them to the supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; in the Union. In any case, obliged entities should take appropriate measures to address such restrictions or prohibitions to share information.

There are circumstances where a groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; operates branches or subsidiaries in a third countrymeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; whose law does not permit the implementation of group-wide anti-money laundering and countering the financing of terrorism policies, procedures and controls. This can be the case, for example, where the third country's data protection, banking secrecy or professional secrecy law limits the group's ability to access, process or exchange information related to customers of branches or subsidiaries in the third countrymeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime;.

In those circumstances, and in situations where the ability of supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; to effectively supervise the group's compliance with the requirements Regulation (EU) 2024/1624 is impeded because supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; do not have access to relevant information held at branches or subsidiaries in third countriesmeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime;, additional policies, procedures and controls are required to manage money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; risk effectively. These additional policies, procedures and controls may include obtaining consent from customers, which can serve to overcome certain legal obstacles to the implementation of group-wide anti-money laundering and countering the financing of terrorism policies, procedures and controls in third countriesmeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; where other options are limited.

The need to ensure a consistent Union level response to legal obstacles to the implementation of group-wide policies, procedures and controls justifies the imposition of specific minimum actions obliged entities should be required to take in those situations. However, the extent of such additional policies, procedures and controls should be proportionate and risk-based.

Obliged entities should be able to demonstrate to their supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; that the extent of additional measures they have taken is appropriate in view of the money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; risk. However, should the supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; consider that the additional measures an obliged entity has taken are insufficient to manage that risk, the supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should be able to direct the obliged entity to take specific measures to ensure the obliged entity's compliance with its anti-money laundering and countering the financing of terrorism obligations.

The additional supervisory actions described in this Regulation are specific to situations where, in the context of operations carried out in a third countrymeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime;, including through branches or subsidiaries forming part of the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU;, the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union or the obliged entity does not put in place adequate systems and controls to manage the money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; risks where the law of that third countrymeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; does not permit the application of group-wide AML/CFT systems and controls that comply with Union law. The assessment of whether such third-country legal or regulatory impediments prevent effective compliance should not depend on the internal allocation of functions within the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU;. Where operations are carried out in a third countrymeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; through a branch or subsidiary, such assessment should be made irrespective of whether specific AML/CFT functions are performed locally or at groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; level. Following a supervisory assessment, where the policies, procedures, systems and controls put in place do not ensure that the associated money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and terrorist financingmeans the conduct set out in Article 11 of Directive (EU) 2017/541 including aiding and abetting, inciting and attempting to commit that conduct, whether carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; risks are effectively managed, supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should apply the additional supervisory actions provided for in this Regulation. Those additional supervisory actions complement other supervisory actions and measures that supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; may apply under Union or national law, including enforcement measures available under those legal frameworks. The actions supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; take should be proportionate and risk-based, taking into account the specific circumstances of the case.

The provisions of this Regulation should also be without prejudice to the enhanced due diligence measures obliged entities are required to take when dealing with natural persons or legal entities established in countries identified by the Commission as having significant strategic deficiencies in their national AML/CFT regimes, weaknesses in their national AML/CFT regimes, and or, posing a specific and serious threat to the Union’s financial system pursuant to Articles 29, 30 and 31 of Regulation (EU) 2024/1624.

For groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; whose head office is located outside of the Union, where at least two subsidiaries are obliged entities established in the Union and they are not in a relationship of control with each other pursuant to Article 2(1) number (42)(b) of Regulation (EU) 2024/1624, a parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union, responsible for the implementation of the AML/CFT and the prevention to the non-implementation and evasion of financial sanctions framework, should be determined.

In the situation covered by Article 2(1) number (42)(b) of Regulation (EU) 2024/1624, before notifying the home supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620;, the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union should assess its role, taking into account certain criteria such as the prominence of activities, the understanding of operations and the responsibility of implementing group-wide requirements. These criteria should be based on elements such as the customer base, the amount of transactions when these are performed, the total annual turnover in the groupmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU;, the types of powers and influence of each obliged entity in the Union.

To ensure that supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; are aware of the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union for groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; whose head office is located outside of the Union and that have two or more obliged entities in the Union which are not a subsidiary of another undertaking that is an obliged entity established in the Union, a notification mechanism to supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should be included.

Supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should receive a notification by the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union pursuant to Article 2(1) number (42)(b) of Regulation (EU) 2024/1624 and be permitted to request, where necessary, specific clarifications or additional information regarding the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; assessment performed by the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union. The home supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; of the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; should be able to reach a decision on the identification of the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union within two months after the complete notification by the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation;.

All the relevant supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (´the Authority´) should be fully informed in any case on the notification procedure to identify the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union pursuant to Article 2(1) number (42)(b) of Regulation (EU) 2024/1624. This is to ensure that appropriate information sharing and good cooperation between supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; take place and that the home supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; adopts the decision on the identification of the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union in due course. In cases of disagreement between supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; on the assessment of the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; performed by the home supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620;, one or more supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; may ask the Authority to settle the disagreement between supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; in cross-border situations.

In addition to groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU;, structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. exist, such as networksmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control. or partnershipsmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control. or franchisees, in which obliged entities might share common ownership, management or compliance control, which should be subject to group-equivalent requirements. To ensure a level playing field across the sectors whilst avoiding overburdening those sectors, this Regulation identifies situations where group-wide policies, procedures and controls, including information sharing requirements, should apply to those structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities., taking into account the principle of proportionality.

Given the different types of structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. that could exist in different sectors and jurisdictions, especially in the non-financial sector, the conditions for the qualification of structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. that share common ownership, management or compliance control should be designed in a general and comprehensible manner to ensure harmonisation at Union level. Furthermore, such conditions should be designed broadly to allow a wide application of the group-wide equivalent requirements. For instance, common compliance control should not be limited to compliance under the AML/CFT framework, but include other types of compliance such as prudential, product or service compliance arrangements in place.

Networksmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control., as defined in this Regulation, are common arrangements, usually, but not only for auditors, external accountants, lawyers and other professionals where structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. are established for specific purposes and that can have common ownership, common management or common compliance control. Similarly, partnershipsmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control. are common arrangements for auditors, external accountants, lawyers and notaries, including inter- professional or multi-disciplinary networksmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control., with obliged entities belonging to different categories, where common ownership, common management, common compliance control can be established. Further, franchisesmeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control. are common arrangements for instance for professionals, real estate agents, real estate professionals and the gambling sector where arrangements are put in place under a common franchisemeans 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; andthe relationship is established in a structure under common ownership, common management or common compliance control. sharing certain elements of common management or common compliance control for the purposes of marketing specific types of goods and/or services. Under the conditions set out in this Regulation these structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. should be subject to group-wide equivalent requirements.

Given the close operational and organisational links between the legal entity and their branches, the application of group-wide policies, procedures and controls to such structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. is necessary to ensure a consistent and comprehensive approach to AML/CFT risk management throughout the Union. For instance, an obliged entity authorised in one Member State that operates in other Member States through one or more branches, even when it has no subsidiaries, should be subject to this Regulation. Similarly, when an entity in a third countrymeans any jurisdiction, independent state or autonomous territory that is not part of the Union and that has its own AML/CFT legislation or enforcement regime; operates only through branches in the Union, these branches should be subject to this Regulation. In these cases, such structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. have in place common ownership, common management or common compliance control.

Differently, there can be structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. other than groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; that do not share any elements of common ownership, common management or common compliance control, such as pure cooperation agreements or arrangements that establish or develop only common technical tools or sharing of knowledge, customer referrals or exchanges of best practices or only the same name or branding or outsourcing arrangements of compliance control to the same service provider. To ensure proportionality in the application of the requirements, these structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. do not fall in the scope of this Regulation.

The relationship between an agent and its principal and between a distributor and its principal does not fall within the scope of this Regulation when it is subject to specific provisions stated in Article 12 and 8(5) of Regulation (EU) 2024/1624.

For arrangements other than groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; that share common ownership, common management or common compliance control, the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union should be identified to determine the entity in charge of developing and implementing group-wide equivalent requirements taking into account the nature of the risk and the annual turnover of the obliged entities of the structuremeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities.. The criteria to determine the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union should consider the position of the entity identified as parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the structuremeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. in the Union, its powers of control and management, and its annual turnover.

A notification mechanism to the supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; of the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union of the structuresmeans 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; andhas the objective of establishing a common framework of business, professional or commercial relationships connecting two or more obliged entities. falling in the scope of this Regulation other than groupsmeans a group of undertakings which consists of a parent undertaking, its subsidiaries, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU; should be included to ensure clarity and effectiveness in the identification of the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union in such cases. Supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should receive a notification by the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union and be permitted to request, where necessary, specific clarifications or additional information regarding the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; assessment performed by the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union. The home supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; of the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; should be able to reach a decision on the identification of the parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation; in the Union within two months after the complete notification by the identified parent undertakingmeans: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; andis given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation;.

This Regulation is based on the draft regulatory technical standards submitted to the Commission by the Authority.

The Authority has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based and analysed the potential related costs and benefits.

Application of this Regulation is deferred to 10 July 2027 to align with the date of applicability of Regulation (EU) 2024/1624.