Art. 31 Application of sanctions and measures by competent authorities | Transfer of funds regulation (TFR) | AML

This article governs how competent authorities must calibrate administrative sanctions and measures.

It is a short, cross-referential article that does not stand alone — it directly incorporates external standards from Directive (EU) 2015/849, specifically Articles 60(4) and 62, to guide both the determination of sanctions and the broader rules that apply to them.

In essence, it ensures that sanctioning decisions made under this Regulation are consistent with the wider AML/CFT framework already established by that Directive.

Important points:

Competent authorities are required to take into account all relevant circumstances, as listed in Article 60(4) of Directive (EU) 2015/849, when deciding the type and level of administrative sanctions.
Article 62 of Directive (EU) 2015/849 applies in full to any administrative sanctions and measures imposed under this Regulation.
The article applies to competent authorities, which include Financial Intelligence Units, supervisory authorities, and public bodies with AML/CFT responsibilities.

In order to improve compliance with this Regulation, and in accordance with the Commission Communication of 9 December 2010 entitled ‘Reinforcing sanctioning regimes in the financial services sector’, the power to adopt supervisory measures and the sanctioning powers of competent authorities should be enhanced. Administrative sanctions and measures should be provided for and, given the importance of the fight against money laundering and terrorist financing, Member States should lay down sanctions and measures that are effective, proportionate and dissuasive. Member States should notify the Commission and the permanent internal committee on anti-money-laundering and countering terrorist financing referred to in Article 9a(7) of Regulation (EU) No 1093/2010 thereof.

Article 31 Application of sanctions and measures by competent authorities

Relevant recitals