Art. 8 Decision on periodic penalty payments | RTS on pecuniary sanctions and administrative measures | AML

This article sets out the core requirements governing the content and basis of decisions to impose periodic penalty payments.

It builds directly on the procedural groundwork laid in Article 7, establishing that any such decision must respect the right to be heard, be adequately reasoned, and be calculated according to a defined set of factors.

In essence, it ensures that supervisors are both procedurally fair and transparent in how they arrive at and communicate penalty payment decisions.

Important points:

Supervisors are required to base periodic penalty payment decisions only on facts the concerned person has had the opportunity to respond to, and must include in the decision the legal basis, reasons, and calculation amount.
Supervisors must weigh five specific factors when determining the calculation amount, including the nature of the non-compliance, third-party losses, and the financial strength of the person concerned — but only where these were already established at the time the original administrative measure was imposed.
If you are subject to a periodic penalty payment, the decision must contain sufficient information to understand both why it was imposed and how the amount was reached.

1. The decision on the imposition of periodic penalty payments shall be based only on facts on which the natural person or legal person concerned has had an opportunity to exercise its right to be heard.
1. A decision on the imposition of a periodic penalty payment pursuant to Article 57 of Directive (EU) 2024/1640 shall at least indicate the legal basis, the reasons for the decision and the amount that will be used for the calculation of the final accrued amount of the periodic penalty payment.
1. When deciding on the amount that will be used for the calculation of the final accrued amount of the periodic penalty payment, the supervisor shall take into account all of the following factors:
  1. the type and the object of the applicable administrative measure that has not been complied with;
  2. reasons for the non-compliance with the applicable administrative measure;
  3. the losses to third parties caused by the non-compliance with the applicable administrative measure, provided they were determined when the applicable administrative measure was imposed;
  4. the benefit derived from the non-compliance with the applicable administrative measure, provided they were determined when the applicable administrative measure was imposed;
  5. the financial strength of the natural person or legal person concerned, provided this was determined when the applicable administrative measure was imposed.