Source: AMLA final report draft
- Anti-money laundering
AMLR supplemental acts
- RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches
Article 11 Determination of sufficient understanding of operations within the group
This is a draft act
This text has been parsed from the AMLA final report draft as published on 30 September 2026. While we run a suite of validations, the automated parsing can result in errors. Also, before it is finally adopted by the Commission, its wording, numbering and references may change, and entire articles might be removed or added.
Earlier drafts: AMLA consultation paper draft (16 April 2026)
Obliged entities that belong to groups whose head office is located outside the Union and are not subsidiaries of another undertaking that is an obliged entity established in the Union shall determine sufficient understanding of operations as stipulated in Article 2(1), point (42)(b)(iii) of Regulation (EU) 2024/1624 by any of the following circumstances:
the obliged entity having the right or ability to decide on the strategy or to direct the activities of most obliged entities established or located in the Union;
the obliged entity having the right or ability to decide on important transactions, including the transfer of profits or losses of most obliged entities established or located in the Union;
the obliged entity having the right or ability to coordinate the management, or decide on the internal controls of, or impose remediation measures on most obliged entities established or located in the Union;
the obliged entity having material outsourcing, reliance on other obliged entities or other third-party arrangements in place for most obliged entities established or located in the Union.
Consideration shall be given to the nature of business, including risks and complexity, and size of the obliged entities established or located in the Union.
Where paragraph 1 does not determine sufficient understanding of operations, the obliged entities mentioned in paragraph 1 shall determine sufficient understanding of operations based on the number of full-time equivalent staff members of the compliance functions referred to in Article 16(2) of Regulation (EU) 2024/1624 in the Union.
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Definition
parent undertaking
- for groups whose head office is located in the Union, an obliged entity that is a parent undertaking as defined in Article 2, point (9), of Directive 2013/34/EU that is not itself a subsidiary of another undertaking in the Union, provided that at least one subsidiary undertaking is an obliged entity;
- for groups whose head office is located outside of the Union, where at least two subsidiary undertakings are obliged entities established in the Union, an undertaking within that group established in the Union that:
- is an obliged entity;
- is an undertaking that is not a subsidiary of another undertaking that is an obliged entity established in the Union;
- has a sufficient prominence within the group and a sufficient understanding of the operations of the group that are subject to the requirements of this Regulation; and
- is given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation;
Definition
group