TR

AN

SP

OS

ITIO

N N

OT

E

Dir

ecti

ve 2

015/8

49/E

U o

f th

e E

uro

pea

n P

arl

iam

ent

and o

f th

e C

ounci

l of

20 M

ay

2015 o

n t

he

pre

venti

on o

f th

e use

of

the

financi

al

syst

em f

or

the

purp

ose

s of

money

la

under

ing o

r te

rrori

st f

inanci

ng(1

); a

nd A

rtic

les

17 t

o 2

2 o

f R

egula

tion 2

015/8

47/E

U o

f th

e E

uro

pea

n P

arl

iam

ent

and o

f

the

Counci

l of

20 M

ay

2015 o

n i

nfo

rmati

on a

ccom

panyi

ng t

ransf

ers

of

funds(

2).

This

Tra

nsp

osi

tion N

ote

has

bee

n p

repar

ed b

y H

M T

reas

ury

. T

he

table

s bel

ow

set

out

the

mai

n e

lem

ents

of

the

UK

’s i

mple

men

tati

on o

f th

e

Dir

ecti

ve,

and o

f A

rtic

les

17 t

o 2

2 o

f th

e R

egula

tion,

in t

he

Money L

aund

erin

g,

Ter

rori

st F

inan

cin

g a

nd T

ransf

er o

f F

unds

(Info

rmat

ion o

n t

he

Pay

er)

Reg

ula

tions

2017 (

the

“2017 R

egula

tions”

). A

ll r

efer

ence

s to

reg

ula

tions

in t

he

table

s ar

e to

reg

ula

tions

in t

he

2017 R

egula

tions.

Ab

bre

via

tion

s

AT

CS

A

th

e A

nti

-Ter

rori

sm, C

rim

e an

d S

ecuri

ty A

ct 2

001

CC

A

the

Cri

me

and C

ourt

s A

ct 2

013

PO

CA

the

Pro

ceed

s o

f C

rim

e A

ct 2

002

TA

CT

the

Ter

rori

sm A

ct 2

000

TA

FA

the

Ter

rori

st A

sset

-Fre

ezin

g e

tc A

ct 2

010

AQ

Reg

ula

tions

the

ISIL

(D

a’es

h)

and A

l-Q

aida

(Ass

et-F

reez

ing)

Reg

ula

tions

2011

Dir

ecti

ve

2015/8

49/E

U o

f th

e E

uro

pea

n P

arl

iam

ent

an

d o

f th

e C

ou

nci

l of

20 M

ay 2

015 o

n t

he

pre

ven

tion

of

the

use

of

the

fin

an

cial

syst

em

for

the

pu

rpose

s of

mon

ey l

au

nd

erin

g o

r te

rro

rist

fin

an

cin

g

Art

icle

D

irec

tiv

e T

ext

Tra

nsp

osi

tion

C

HA

PT

ER

I

(1)

17

OJ

No L

14

1, 05

.06

.15, p

73

. (2

) O

J L

14

1, 05

.06.2

01

5, p

.1.

G

EN

ER

AL

PR

OV

ISIO

NS

S

EC

TIO

N 1

S

ubje

ct-m

att

er, sc

ope

an

d d

efin

itio

ns

1

Art

icle

1

1.1

T

his

Dir

ecti

ve

aim

s to

pre

ven

t th

e use

of

the

Un

ion's

fin

anci

al s

yst

em f

or

the

purp

ose

s o

f

money

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng.

1.2

M

ember

Sta

tes

shal

l en

sure

that

money l

aunder

ing a

nd t

erro

rist

fin

anci

ng a

re p

rohib

ited

. P

rim

ary l

egis

lati

on

1.3

F

or

the

purp

ose

s o

f th

is D

irec

tive,

the

foll

ow

ing c

onduct

, when

com

mit

ted inte

nti

onal

ly, s

hal

l

be

regar

ded

as

money l

aunder

ing:

PO

CA

Par

t 7

(a

)the

conver

sion o

r tr

ansf

er o

f pro

per

ty, know

ing that

such

pro

per

ty is

der

ived

fro

m c

rim

inal

acti

vit

y o

r fr

om

an

act

of

par

tici

pat

ion i

n s

uch

act

ivit

y,

for

the

pu

rpose

of

conce

alin

g o

r

dis

guis

ing the

illi

cit ori

gin

of

the

pro

per

ty o

r o

f as

sist

ing a

ny p

erso

n w

ho is

involv

ed in the

com

mis

sion o

f su

ch a

n a

ctiv

ity t

o e

vad

e th

e le

gal

conse

quen

ces

of

that

per

son's

act

ion;

(b

)the

conce

alm

ent

or

dis

guis

e of

the

tru

e nat

ure

, so

urc

e, l

oca

tion,

dis

posi

tion,

movem

ent,

rights

wit

h r

espec

t to

, or

ow

ner

ship

of,

pro

per

ty,

know

ing t

hat

su

ch p

rop

erty

is

der

ived

from

cri

min

al a

ctiv

ity o

r fr

om

an a

ct o

f par

tici

pat

ion i

n s

uch

an a

ctiv

ity;

(c

)the

acquis

itio

n,

poss

essi

on o

r use

of

pro

per

ty,

know

ing,

at t

he

tim

e of

rece

ipt,

that

such

pro

per

ty w

as d

eriv

ed f

rom

cri

min

al a

ctiv

ity o

r fr

om

an a

ct o

f par

tici

pat

ion i

n s

uch

an

acti

vit

y;

(d

)par

tici

pat

ion

in,

asso

ciat

ion

to

com

mit

, at

tem

pts

to

co

mm

it

and

aid

ing,

abet

ting,

faci

lita

ting a

nd c

ounse

llin

g t

he

com

mis

sion o

f an

y o

f th

e ac

tions

refe

rred

to i

n p

oin

ts (

a),

(b)

and (

c).

1.4

M

oney

lau

nder

ing s

hal

l be

regar

ded

as

such

even

wher

e th

e ac

tivit

ies

whic

h g

ener

ated

the

pro

per

ty t

o b

e la

under

ed w

ere

carr

ied o

ut

in t

he

terr

itory

of

anoth

er M

ember

Sta

te o

r in

that

of

a th

ird c

ountr

y.

PO

CA

Par

t 7

1.5

F

or

the

purp

ose

s of

this

Dir

ecti

ve,

‘te

rrori

st f

inan

cing’

mea

ns

the

pro

vis

ion o

r co

llec

tion o

f

funds,

by a

ny m

eans,

dir

ectl

y o

r in

dir

ectl

y,

wit

h t

he

inte

nti

on t

hat

they

be

use

d o

r in

th

e

know

ledge

that

they

are

to b

e use

d, in

full

or

in p

art,

in o

rder

to c

arry

out

any o

f th

e off

ence

s

wit

hin

the

mea

nin

g o

f A

rtic

les

1 t

o 4

of

Counci

l F

ram

ework

Dec

isio

n 2

002

/475/J

HA

(20).

Par

t II

I T

AC

T;

Sch

3 A

TC

SA

; C

hap

2 T

AF

A;

Al

Qai

da

Reg

ula

tions

1.6

K

now

led

ge,

inte

nt or

purp

ose

req

uir

ed a

s an

ele

men

t of

the

acti

vit

ies

refe

rred

to in p

arag

raphs

3 a

nd 5

may b

e in

ferr

ed f

rom

obje

ctiv

e fa

ctual

cir

cum

stan

ces.

PO

CA

Par

t 7

Par

t II

I T

AC

T;

Sch

3 A

TC

SA

; C

hap

2 T

AF

A;

Al

Qai

da

Reg

ula

tions

A

rtic

le 2

2.1

T

his

Dir

ecti

ve

shal

l ap

ply

to t

he

foll

ow

ing o

bli

ged

enti

ties

: R

egula

tion 8

(1

) cr

edit

inst

ituti

ons;

Reg

ula

tion

8(2

)(a)

; D

efin

ed

in

regula

tion 1

0(1

)

(2

) fi

nan

cial

inst

ituti

ons;

Reg

ula

tion

8(2

)(b);

D

efin

ed

in

regula

tion 1

0(2

)

(3

) th

e fo

llow

ing n

atura

l or

legal

per

sons

acti

ng in the

exer

cise

of

thei

r pro

fess

ional

act

ivit

ies:

(a

) au

dit

ors

, ex

tern

al a

ccoun

tants

and t

ax a

dvis

ors

;

Reg

ula

tion

8(2

)(c)

; def

ined

in

regula

tion 1

1

(b

) nota

ries

and o

ther

ind

epen

den

t le

gal

pro

fess

ional

s, w

her

e th

ey p

arti

cipat

e, w

het

her

by a

ctin

g o

n b

ehal

f of

and f

or

thei

r cl

ient

in a

ny f

inan

cial

or

real

est

ate

tran

sact

ion, or

by a

ssis

ting i

n t

he

pla

nnin

g o

r ca

rryin

g o

ut

of

tran

sact

ions

for

thei

r cl

ient

conce

rnin

g

the:

Reg

ula

tion

8(2

)(d

);

def

ined

in

regula

tion 1

2(1

)

(i

) bu

yin

g a

nd s

elli

ng o

f re

al p

rop

erty

or

busi

nes

s en

titi

es;

Reg

ula

tion 1

2(1

)(a)

(i

i) m

anag

ing o

f cl

ient

money

, se

curi

ties

or

oth

er a

sset

s;

Reg

ula

tion 1

2(1

)(b)

(i

ii)

open

ing o

r m

anag

emen

t of

ban

k, sa

vin

gs

or

secu

riti

es a

ccounts

;

Reg

ula

tion 1

2(1

)(c)

(i

v)

org

anis

atio

n of

con

trib

uti

ons

nec

essa

ry fo

r th

e cr

eati

on,

oper

atio

n or

man

agem

ent

of

com

pan

ies;

Reg

ula

tion 1

2(1

)(d)

(v

) cr

eati

on,

oper

atio

n o

r m

anag

emen

t of

trust

s, c

om

pan

ies,

found

atio

ns,

or

sim

ilar

str

uct

ure

s;

Reg

ula

tion 1

2(1

)(e)

(c

) tr

ust

or

com

pan

y s

erv

ice

pro

vid

ers

not

alre

ady c

over

ed u

nd

er p

oin

t (a

) o

r (b

);

Reg

ula

tion

8(2

)(e)

; def

ined

in

regula

tion 1

2(2

)

(d

) es

tate

agen

ts;

Reg

ula

tion

8(2

)(f)

; def

ined

in

regula

tion 1

3

(e

) oth

er p

erso

ns

trad

ing i

n g

oods

to t

he

exte

nt

that

pay

men

ts a

re m

ade

or

rece

ived

in

cash

in a

n a

mount

of

EU

R 1

0 0

00 o

r m

ore

, w

het

her

the

tran

sact

ion i

s ca

rrie

d o

ut

in a

single

oper

atio

n o

r in

sev

eral

oper

atio

ns

whic

h a

ppea

r to

be

linked

;

Reg

ula

tion

8(2

)(g);

def

ined

in

regula

tion 1

4(a

)

(f

) pro

vid

ers

of

gam

bli

ng s

ervic

es.

Reg

ula

tion

8(2

)(h

);

def

ined

in

regula

tion 1

4(b

)

2.2

W

ith t

he

exce

pti

on o

f ca

sinos,

and f

oll

ow

ing a

n a

ppro

pri

ate

risk

ass

essm

ent,

Mem

ber

Sta

tes

may

dec

ide

to e

xem

pt,

in f

ull

or

in p

art,

pro

vid

ers

of

cert

ain g

ambli

ng s

ervic

es f

rom

nat

ional

pro

vis

ions

tran

sposi

ng t

his

Dir

ecti

ve

on t

he

bas

is o

f th

e p

roven

low

ris

k p

ose

d b

y t

he

nat

ure

and, w

her

e ap

pro

pri

ate,

the

scal

e o

f oper

atio

ns

of

such

ser

vic

es.

See

reg

ula

tion 8

(2)(

h);

16(3

)(c)

A

mong the

fact

ors

consi

der

ed in thei

r ri

sk a

sses

smen

ts, M

ember

Sta

tes

shal

l as

sess

the

deg

ree

of

vuln

erab

ilit

y o

f th

e ap

pli

cable

tra

nsa

ctio

ns,

incl

udin

g w

ith r

espec

t to

the

pay

men

t m

ethods

use

d.

In

thei

r ri

sk a

sses

smen

ts, M

ember

Sta

tes

shal

l in

dic

ate

how

they h

ave

tak

en i

nto

acc

ount

any

rele

van

t fi

ndin

gs

in t

he

report

s is

sued

by t

he

Com

mis

sion p

urs

uan

t to

Art

icle

6.

A

ny d

ecis

ion t

aken

by a

Mem

ber

Sta

te p

urs

uan

t to

the

firs

t su

bp

arag

raph s

hal

l be

noti

fied

to

the

Com

mis

sion,

toget

her

wit

h a

just

ific

atio

n b

ased

on

the

spec

ific

ris

k a

sses

smen

t. T

he

Com

mis

sion s

hal

l co

mm

unic

ate

that

dec

isio

n t

o t

he

oth

er M

ember

Sta

tes.

2.3

M

ember

Sta

tes

may

dec

ide

that

per

sons

that

engag

e in

a f

inan

cial

act

ivit

y o

n a

n o

ccas

ional

or

ver

y l

imit

ed b

asis

wh

ere

ther

e is

lit

tle

risk

of

money

lau

nd

erin

g o

r te

rrori

st f

inan

cin

g d

o

not

fall

wit

hin

the

scope

of

this

Dir

ecti

ve,

pro

vid

ed t

hat

all

of

the

foll

ow

ing c

rite

ria

are

met

:

Reg

ula

tion 1

5(2

)

(a

) th

e fi

nan

cial

act

ivit

y i

s li

mit

ed i

n a

bso

lute

ter

ms;

Reg

ula

tion 1

5(3

)(a)

(b

) th

e fi

nan

cial

act

ivit

y i

s li

mit

ed o

n a

tra

nsa

ctio

n b

asis

;

Reg

ula

tion 1

5(3

)(b)

(c

) th

e fi

nan

cial

act

ivit

y i

s n

ot

the

mai

n a

ctiv

ity o

f su

ch p

erso

ns;

Reg

ula

tion 1

5(3

)(c)

(d

) the

finan

cial

act

ivit

y i

s an

cill

ary a

nd d

irec

tly r

elat

ed t

o t

he

mai

n a

ctiv

ity o

f su

ch p

erso

ns;

Reg

ula

tion 1

5(3

)(d)

(e

)the

mai

n a

ctiv

ity o

f su

ch p

erso

ns

is n

ot

an a

ctiv

ity r

efer

red t

o i

n p

oin

ts (

a) t

o (

d)

or

poin

t

(f)

of

par

agra

ph 1

(3);

Reg

ula

tion 1

5(1

)(f)

and (

3)(

f)

(f

) th

e fi

nan

cial

act

ivit

y i

s pro

vid

ed o

nly

to the

cust

om

ers

of

the

mai

n a

ctiv

ity o

f su

ch p

erso

ns

and i

s not

gen

eral

ly o

ffer

ed t

o t

he

publi

c.

Reg

ula

tion 1

5(3

)(g)

T

he

firs

t su

bp

arag

raph s

hal

l not ap

ply

to p

erso

ns

engag

ed in the

acti

vit

y o

f m

oney

rem

itta

nce

as d

efin

ed i

n p

oin

t (1

3)

of

Art

icle

4 o

f D

irec

tive

2007/6

4/E

C o

f th

e E

uro

pea

n P

arli

amen

t an

d

of

the

Counci

l.

Reg

ula

tion 1

5(3

)(e)

2.4

F

or

the

purp

ose

s of

poin

t (a

) of

par

agra

ph 3

, M

ember

Sta

tes

shal

l re

quir

e th

at t

he

tota

l

turn

over

of

the

finan

cial

act

ivit

y d

oes

not

exce

ed a

thre

shold

whic

h m

ust

be

suff

icie

ntl

y l

ow

.

That

thre

shold

shal

l be

esta

bli

shed

at

nat

ional

lev

el,

dep

endin

g o

n t

he

type

of

finan

cial

acti

vit

y.

Reg

ula

tion 1

5(3

)(a)

2.5

F

or

the

purp

ose

s of

poin

t (b

) of

par

agra

ph 3

, M

ember

Sta

tes

shal

l ap

ply

a m

axim

um

thre

shold

per

cust

om

er a

nd p

er s

ingle

tra

nsa

ctio

n,

whet

her

the

tran

sact

ion i

s ca

rrie

d o

ut

in a

sin

gle

oper

atio

n o

r in

sev

eral

oper

atio

ns

whic

h a

ppea

r to

be

linked

. T

hat

max

imum

thre

shold

shal

l

be

esta

bli

shed

at

nat

ion

al l

evel

, d

epen

din

g o

n t

he

type

of

finan

cial

ac

tivit

y.

It s

hal

l be

suff

icie

ntl

y l

ow

in o

rder

to e

nsu

re t

hat

the

types

of

tran

sact

ions

in q

ues

tion a

re a

n i

mpra

ctic

al

and inef

fici

ent m

ethod f

or

money lau

nder

ing o

r te

rrori

st f

inan

cin

g, an

d s

hal

l not ex

ceed

EU

R

1 0

00.

See

reg

ula

tion 1

5(3

)(b)

2.6

F

or

the

purp

ose

s of

poin

t (c

) of

par

agra

ph 3

, M

ember

Sta

tes

shal

l re

quir

e th

at t

he

turn

over

of

the

finan

cial

act

ivit

y d

oes

not

exce

ed 5

% o

f th

e to

tal

turn

over

of

the

nat

ura

l or

legal

per

son

conce

rned

.

See

reg

ula

tion 1

5(3

)(c)

.

2.7

In

ass

essi

ng the

risk

of

money

lau

nder

ing o

r te

rrori

st f

inan

cin

g f

or

the

purp

ose

s of

this

Art

icle

,

Mem

ber

Sta

tes

shal

l pay p

arti

cula

r at

tenti

on t

o a

ny f

inan

cial

act

ivit

y w

hic

h i

s co

nsi

der

ed t

o

be

par

ticu

larl

y lik

ely, b

y its

nat

ure

, to

be

use

d o

r ab

use

d f

or

the

purp

ose

s of

money

lau

nder

ing

or

terr

ori

st f

inan

cin

g.

Reg

ula

tion 1

6(1

) an

d (

3)(

b)

and (

c).

2.8

D

ecis

ions

taken

by M

ember

Sta

tes

purs

uan

t to

par

agra

ph 3

shal

l st

ate

the

reas

ons

on w

hic

h

they

are

bas

ed.

Mem

ber

Sta

tes

may

dec

ide

to w

ithdra

w s

uch

dec

isio

ns

wher

e ci

rcum

stan

ces

chan

ge.

T

hey

shal

l noti

fy

such

dec

isio

ns

to

the

Com

mis

sion.

The

Com

mis

sion

shal

l

com

munic

ate

such

dec

isio

ns

to t

he

oth

er M

ember

Sta

tes.

No t

ransp

osi

tion r

equir

ed

2.9

M

ember

S

tate

s sh

all

esta

bli

sh

risk

-bas

ed

monit

ori

ng

acti

vit

ies

or

take

oth

er

adeq

uat

e

mea

sure

s to

ensu

re t

hat

the

exem

pti

on g

rante

d b

y d

ecis

ions

purs

uan

t to

this

Art

icle

is

not

abuse

d.

Reg

ula

tion 1

6(3

)(b)

and (

c).

A

rtic

le 3

3

For

the

purp

ose

s of

this

Dir

ecti

ve,

the

foll

ow

ing d

efin

itio

ns

apply

:

(1

)‘cr

edit

inst

ituti

on’

mea

ns

a cr

edit

inst

ituti

on a

s def

ined

in p

oin

t (1

) of

Art

icle

4(1

) of

Reg

ula

tion

(EU

) N

o 5

75/2

013

of

the

Euro

pea

n

Par

liam

ent

and

of

the

Counci

l (2

2),

incl

udin

g b

ranch

es t

her

eof,

as

def

ined

in p

oin

t (1

7)

of

Art

icle

4(1

) of

that

Reg

ula

tion,

loca

ted i

n t

he

Unio

n,

whet

her

its

hea

d o

ffic

e is

sit

uat

ed w

ithin

the

Unio

n o

r in

a t

hir

d

countr

y;

See

reg

ula

tion 1

0(1

)

(2

) ‘f

inan

cial

inst

ituti

on’

mea

ns:

S

ee r

egula

tion 1

0(2

)

(a

)an u

nder

takin

g o

ther

than

a c

redit

inst

ituti

on,

whic

h c

arri

es o

ut

one

or

more

of

the

acti

vit

ies

list

ed

in

poin

ts (

2)

to

(12

),

(14

) an

d

(15)

of

Annex

I

to

Dir

ecti

ve

2013/3

6/E

U o

f th

e E

uro

pea

n P

arli

amen

t an

d o

f th

e C

ounci

l (2

3),

incl

ud

ing t

he

acti

vit

ies

of

curr

ency e

xch

ange

off

ices

(bure

aux

de

chan

ge)

;

Reg

ula

tion 1

0(2

)(a)

(b

)an

insu

ran

ce

under

takin

g

as

def

ined

in

poin

t (1

) of

Art

icle

13

of

Dir

ecti

ve

2009/1

38/E

C o

f th

e E

uro

pea

n P

arli

amen

t an

d o

f th

e C

ounci

l (2

4),

inso

far

as i

t

carr

ies

out

life

ass

ura

nce

act

ivit

ies

cover

ed b

y t

hat

Dir

ecti

ve;

Reg

ula

tion 1

0(2

)(b)

(c

)an i

nves

tmen

t fi

rm a

s def

ined

in p

oin

t (1

) of

Art

icle

4(1

) of

Dir

ecti

ve

2004/3

9/E

C

of

the

Euro

pea

n P

arli

amen

t an

d o

f th

e C

ounci

l (2

5);

Reg

ula

tion 1

0(2

)(c)

(d

) a

coll

ecti

ve

inves

tmen

t u

nder

takin

g m

ark

etin

g i

ts u

nit

s or

shar

es;

Reg

ula

tion 1

0(2

)(e)

(e

)an

insu

ran

ce

inte

rmed

iary

as

d

efin

ed

in

poin

t (5

) of

Art

icle

2

of

Dir

ecti

ve

2002/9

2/E

C o

f th

e E

uro

pea

n P

arli

amen

t an

d o

f th

e C

ounci

l (2

6)

wher

e it

act

s w

ith

resp

ect

to l

ife

insu

ran

ce a

nd o

ther

inv

estm

ent-

rela

ted s

ervic

es,

wit

h t

he

exce

pti

on

of

a ti

ed i

nsu

rance

inte

rmed

iary

as

def

ined

in p

oin

t (7

) of

that

Art

icle

;

Reg

ula

tion 1

0(2

)(f)

(f)b

ranch

es,

when

loca

ted i

n t

he

Unio

n,

of

finan

cial

inst

ituti

ons

as r

efer

red

to i

n

poin

ts (

a) t

o (

e),

whet

her

thei

r hea

d o

ffic

e is

sit

uat

ed i

n a

Mem

ber

Sta

te o

r in

a th

ird c

ountr

y;

Reg

ula

tion 1

0(2

)(g)

(3

)‘pro

per

ty’

mea

ns

asse

ts

of

any

kin

d,

whet

her

co

rpore

al

or

inco

rpore

al,

movab

le

or

imm

ovab

le,

tangib

le o

r in

tangib

le,

and le

gal

d

ocu

men

ts or

inst

rum

ents

in

an

y fo

rm

incl

udin

g e

lect

ronic

or

dig

ital

, ev

iden

cin

g t

itle

to o

r an

inte

rest

in s

uch

ass

ets;

Reg

ula

tion

3(2

)(c)

, an

d

UK

la

w

gen

eral

ly

(4

) ‘c

rim

inal

act

ivit

y’

mea

ns

any k

ind o

f cr

imin

al i

nvolv

emen

t in

the

com

mis

sion o

f th

e

foll

ow

ing s

erio

us

crim

es:

See

Sch

edule

3 t

o t

he

Reg

ula

tions;

PO

CA

Par

t 7;

Par

t II

I T

AC

T;

Sch

3

AT

CS

A;

Chap

2 T

AF

A;

Al

Qai

da

Reg

ula

tions

(a

) ac

ts s

et o

ut

in A

rtic

les

1 t

o 4

of

Fra

mew

ork

Dec

isio

n 2

002/4

75/J

HA

;

(b

) an

y

of

the

off

ence

s re

ferr

ed

in

Art

icle

3(1

)(a)

of

the

1988

Unit

ed

Nat

ions

Conven

tion a

gai

nst

Ill

icit

Tra

ffic

in N

arco

tic

Dru

gs

and P

sych

otr

opic

Subst

ance

s;

(c

) th

e ac

tivit

ies

of

crim

inal

org

anis

atio

ns

as d

efin

ed i

n A

rtic

le 1

of

Cou

nci

l Jo

int

Act

ion 9

8/7

33/J

HA

(27);

(d

) fr

aud a

ffec

ting the

Un

ion's

fin

anci

al inte

rest

s, w

her

e it

is

at lea

st s

erio

us,

as

def

ined

in A

rtic

le 1

(1)

and A

rtic

le 2

(1)

of

the

Conv

enti

on o

n t

he

pro

tect

ion o

f th

e E

uro

pea

n

Com

munit

ies'

fin

anci

al i

nte

rest

s (2

8);

(e

) co

rrupti

on;

(f

) al

l off

ence

s, i

ncl

udin

g t

ax c

rim

es r

elat

ing t

o d

irec

t ta

xes

and i

ndir

ect

taxes

and a

s

def

ined

in the

nat

ional

law

of

the

Mem

ber

Sta

tes,

whic

h a

re p

unis

hab

le b

y d

epri

vat

ion

of

liber

ty o

r a

det

enti

on o

rder

for

a m

axim

um

of

more

than

on

e yea

r or,

as

regar

ds

Mem

ber

Sta

tes

that

hav

e a

min

imum

thre

shold

for

off

ence

s in

thei

r le

gal

syst

em,

all

off

ence

s punis

hab

le b

y d

epri

vat

ion o

f li

ber

ty o

r a

det

enti

on o

rder

for

a m

inim

um

of

more

than

six

month

s;

(5

)‘se

lf-r

egula

tory

bod

y’

mea

ns

a bod

y t

hat

rep

rese

nts

mem

ber

s of

a pro

fess

ion a

nd h

as a

role

in r

egula

ting t

hem

, in

per

form

ing c

erta

in s

uper

vis

ory

or

monit

ori

ng t

ype

fun

ctio

ns

and i

n e

nsu

rin

g t

he

enfo

rcem

ent

of

the

rule

s re

lati

ng t

o t

hem

;

Reg

ula

tion 3

(1),

and S

ched

ule

1 t

o

the

Reg

ula

tions.

(6

) ‘b

enef

icia

l ow

ner

’ m

eans

any n

atura

l p

erso

n(s

) w

ho u

ltim

atel

y o

wns

or

contr

ols

th

e

cust

om

er a

nd/o

r th

e n

atura

l per

son(s

) on w

hose

beh

alf

a tr

ansa

ctio

n o

r ac

tivit

y i

s bei

ng

conduct

ed a

nd i

ncl

udes

at

leas

t:

(a

) in

the

case

of

corp

ora

te e

nti

ties

:

(i

) th

e nat

ura

l per

son(s

) w

ho u

ltim

atel

y o

wns

or

contr

ols

a leg

al e

nti

ty thro

ugh

dir

ect

or

indir

ect

ow

ner

ship

of

a su

ffic

ient

per

cen

tage

of

the

shar

es o

r voti

ng

rights

or

ow

ner

ship

in

tere

st

in

that

en

tity

, in

cludin

g

thro

ugh

bea

rer

shar

ehold

ings,

or

thro

ugh

contr

ol via

oth

er m

eans,

oth

er than

a c

om

pan

y lis

ted

on a

reg

ula

ted

mar

ket

that

is

subje

ct to d

iscl

osu

re r

equir

emen

ts c

onsi

sten

t w

ith

Unio

n

law

or

subje

ct

to

equiv

alen

t in

tern

atio

nal

st

andar

ds

whic

h

ensu

re

adeq

uat

e tr

ansp

aren

cy o

f ow

ner

ship

info

rmat

ion.

Reg

ula

tion 5

(1)

and(2

)

A

shar

ehold

ing o

f 25 %

plu

s one

shar

e or

an o

wn

ersh

ip i

nte

rest

of

more

than

25 %

in t

he

cust

om

er h

eld b

y a

nat

ura

l per

son s

hal

l be

an i

ndic

atio

n o

f dir

ect

ow

ner

ship

. A

shar

ehold

ing o

f 25 %

plu

s one

shar

e or

an o

wner

ship

inte

rest

of

more

than

25

% i

n t

he

cust

om

er h

eld b

y a

corp

ora

te e

nti

ty, w

hic

h i

s under

the

Reg

ula

tion 5

(1)(

c) a

nd (

2)

contr

ol

of

a n

atura

l per

son(s

), o

r b

y m

ult

iple

co

rpora

te e

nti

ties

, w

hic

h a

re

under

the

contr

ol

of

the

sam

e n

atura

l p

erso

n(s

), s

hal

l be

an i

ndic

atio

n o

f

indir

ect

ow

ner

ship

. T

his

appli

es w

ithout

pre

judic

e to

th

e ri

ght

of

Mem

ber

Sta

tes

to d

ecid

e th

at a

low

er p

erce

nta

ge

may b

e an

indic

atio

n o

f ow

ner

ship

or

contr

ol.

C

ontr

ol

thro

ugh

oth

er

mea

ns

may

be

det

erm

ined

, in

ter

alia

, in

acco

rdan

ce w

ith t

he

crit

eria

in A

rtic

le 2

2(1

) to

(5)

of

Dir

ecti

ve

2013/3

4/E

U o

f

the

Euro

pea

n P

arli

amen

t an

d o

f th

e C

ounci

l (2

9);

(i

i) i

f, a

fter

hav

ing e

xhau

sted

all

poss

ible

mea

ns

and p

rovid

ed t

her

e ar

e no

gro

unds

for

susp

icio

n, no p

erso

n u

nder

poin

t (i

) is

iden

tifi

ed, or

if t

her

e is

an

y

doubt

that

the

per

son(s

) id

enti

fied

are

the

ben

efic

ial

ow

ner

(s),

the

nat

ura

l

per

son(s

) w

ho

hold

the

posi

tion o

f se

nio

r m

anag

ing o

ffic

ial(

s),

the

obli

ged

enti

ties

sh

all

kee

p

reco

rds

of

the

acti

ons

taken

in

ord

er

to

iden

tify

th

e

ben

efic

ial

ow

ner

ship

und

er p

oin

t (i

) an

d t

his

poin

t;

Reg

ula

tion 2

8(6

), (

7)

and

(8)

(b

) in

the

case

of

trust

s:

Reg

ula

tion 6

(i

) th

e se

ttlo

r;

Reg

ula

tion 6

(1)(

a)

(i

i) t

he

trust

ee(s

);

Reg

ula

tion 6

(1)(

b)

(i

ii)

the

pro

tect

or,

if

any;

Reg

ula

tion 6

(1)(

d),

6(2

)

(i

v)

the

ben

efic

iari

es,

or

wher

e th

e in

div

idual

s ben

efit

ing fr

om

th

e le

gal

arra

ngem

ent

or

enti

ty h

ave

yet

to b

e det

erm

ined

, th

e cl

ass

of

per

sons

in w

hose

mai

n i

nte

rest

the

legal

arr

angem

ent

or

enti

ty i

s se

t up o

r oper

ates

;

Reg

ula

tion 6

(1)(

c),

(d)

(v

) an

y o

ther

nat

ura

l per

son e

xer

cisi

ng u

ltim

ate

contr

ol over

the

trust

by m

eans

of

dir

ect

or

indir

ect

ow

ner

ship

or

by o

ther

mea

ns;

Reg

ula

tion 6

(1)(

d),

6(2

)

(c

) in

th

e ca

se o

f le

gal

en

titi

es s

uch

as

found

atio

ns,

and l

egal

arr

angem

ents

sim

ilar

to

trust

s, t

he

nat

ura

l per

son(s

) hold

ing e

quiv

alen

t or

sim

ilar

posi

tions

to t

hose

ref

erre

d

to i

n p

oin

t (b

);

Reg

ula

tion 6

(3)

(7

) ‘t

rust

or

com

pan

y s

ervic

e p

rovid

er’

mea

ns

any p

erso

n t

hat

, b

y w

ay o

f it

s busi

nes

s,

pro

vid

es a

ny o

f th

e fo

llow

ing s

ervic

es t

o t

hir

d p

arti

es:

Reg

ula

tion 3

(1)

and 1

2(2

)

(a

) th

e fo

rmat

ion o

f co

mpan

ies

or

oth

er l

egal

per

sons;

R

egula

tion 1

2(2

)(a)

(b

) ac

ting a

s, o

r ar

ran

gin

g f

or

anoth

er p

erso

n t

o a

ct a

s, a

dir

ecto

r or

secr

etar

y o

f a

com

pan

y,

a par

tner

of

a par

tner

ship

, or

a si

mil

ar p

osi

tion i

n r

elat

ion t

o o

ther

leg

al

per

sons;

Reg

ula

tion 1

2(2

)(b)

(c

) pro

vid

ing a

reg

iste

red o

ffic

e, b

usi

nes

s ad

dre

ss,

corr

esponden

ce o

r ad

min

istr

ativ

e

addre

ss a

nd

oth

er r

elat

ed s

ervic

es f

or

a co

mpan

y,

a par

tner

ship

or

any o

ther

leg

al

per

son o

r ar

ran

gem

ent;

Reg

ula

tion 1

2(2

)(c)

(d

) ac

ting a

s, o

r ar

ran

gin

g f

or

anoth

er p

erso

n t

o a

ct a

s, a

tru

stee

of

an e

xpre

ss t

rust

or

a si

mil

ar l

egal

arr

angem

ent;

Reg

ula

tion 1

2(2

)(d)(

i)

(e

) ac

tin

g a

s, o

r ar

ran

gin

g f

or

anoth

er p

erso

n t

o a

ct a

s, a

nom

inee

shar

ehold

er f

or

anoth

er p

erso

n o

ther

than

a c

om

pan

y l

iste

d o

n a

reg

ula

ted m

ark

et t

hat

is

subje

ct t

o

dis

closu

re

requir

emen

ts

in

acco

rdan

ce

wit

h

Unio

n

law

or

subje

ct

to

equiv

alen

t

inte

rnat

ional

sta

ndar

ds;

Reg

ula

tion 1

2(2

)(d)(

ii)

(8

) ‘c

orr

espond

ent

rela

tio

nsh

ip’

mea

ns:

R

egula

tion 3

(1)

and 3

4(4

)

(a

) th

e pro

vis

ion o

f b

ankin

g s

ervic

es b

y o

ne

ban

k a

s th

e co

rres

pond

ent to

an

oth

er b

ank

as t

he

resp

onden

t, i

ncl

ud

ing p

rovid

ing a

curr

ent

or

oth

er l

iabil

ity a

ccount

and r

elat

ed

serv

ices

, su

ch a

s ca

sh m

anag

emen

t, i

nte

rnat

ional

funds

tran

sfer

s, c

heq

ue

clea

rin

g,

pay

able

-thro

ugh a

ccounts

and f

ore

ign e

xch

ange

serv

ices

;

Reg

ula

tion 3

4(4

)(a)

(i)

(b

) th

e re

lati

onsh

ips

bet

wee

n a

nd a

mon

g c

redit

inst

ituti

ons

and f

inan

cial

inst

ituti

ons

incl

udin

g w

her

e si

mil

ar s

ervic

es a

re p

rovid

ed b

y a

corr

esponden

t in

stit

uti

on t

o a

resp

onden

t in

stit

uti

on,

and

incl

udin

g

rela

tionsh

ips

esta

bli

shed

fo

r se

curi

ties

tran

sact

ions

or

funds

tran

sfer

s;

Reg

ula

tion 3

4(4

)(a)

(ii)

(9

) ‘p

oli

tica

lly e

xpose

d p

erso

n’

mea

ns

a nat

ura

l per

son w

ho is

or

who h

as b

een e

ntr

ust

ed w

ith

pro

min

ent

publi

c fu

nct

ions

and i

ncl

udes

the

foll

ow

ing:

Reg

ula

tion 3

(1);

35

(12)(

a)

(a

) hea

ds

of

Sta

te, hea

ds

of

gov

ernm

ent,

min

iste

rs a

nd d

eputy

or

assi

stan

t m

inis

ters

; R

egula

tion 3

5(1

4)(

a)

(b

) m

ember

s o

f par

liam

ent

or

of

sim

ilar

leg

isla

tiv

e bodie

s;

Reg

ula

tion 3

5(1

4)(

b)

(c

) m

ember

s of

the

gover

nin

g b

odie

s of

poli

tica

l p

arti

es;

Reg

ula

tion 3

5(1

4)(

c)

(d

) m

ember

s o

f su

pre

me

court

s, o

f co

nst

ituti

onal

court

s or

of

oth

er h

igh-l

evel

judic

ial

bodie

s, t

he

dec

isio

ns

of

whic

h a

re n

ot

subje

ct t

o f

urt

her

app

eal,

ex

cept

in e

xce

pti

onal

circ

um

stan

ces;

Reg

ula

tion 3

5(1

4)(

d)

(e

) m

ember

s of

cou

rts

of

audit

ors

or

of

the

boar

ds

of

centr

al b

anks;

R

egula

tion 3

5(1

4)(

e)

(f

) am

bas

sadors

, ch

argés

d'a

ffai

res

and h

igh-r

ankin

g o

ffic

ers

in t

he

arm

ed f

orc

es;

Reg

ula

tion 3

5(1

4)(

f)

(g

) m

ember

s o

f th

e ad

min

istr

ativ

e, m

anag

emen

t or

super

vis

ory

bodie

s of

Sta

te-o

wned

ente

rpri

ses;

Reg

ula

tion 3

5(1

4)(

g)

(h

) dir

ecto

rs,

dep

uty

dir

ecto

rs a

nd m

ember

s of

the

boar

d o

r eq

uiv

alen

t fu

nct

ion o

f an

inte

rnat

ional

org

anis

atio

n.

Reg

ula

tion 3

5(1

4)(

h)

N

o p

ubli

c fu

nct

ion r

efer

red t

o i

n p

oin

ts (

a) t

o (

h)

shal

l be

under

stood a

s co

ver

ing m

iddle

-

rankin

g o

r m

ore

junio

r off

icia

ls;

Reg

ula

tion 3

5(1

2)(

a)

(1

0)

‘fam

ily m

ember

s’ i

ncl

udes

the

foll

ow

ing:

Reg

ula

tion 3

5(1

2)(

b)

(a

) th

e sp

ouse

, or

a p

erso

n c

onsi

der

ed t

o b

e eq

uiv

alen

t to

a s

pouse

, of

a poli

tica

lly

expose

d p

erso

n;

Reg

ula

tion 3

5(1

2)(

b)(

i)

(b

) th

e ch

ildre

n a

nd t

hei

r sp

ouse

s, o

r p

erso

ns

consi

der

ed t

o b

e eq

uiv

alen

t to

a s

pouse

,

of

a poli

tica

lly e

xpose

d p

erso

n;

Reg

ula

tion 3

5(1

2)(

b)(

ii)

(c

) th

e p

aren

ts o

f a

poli

tica

lly e

xpose

d p

erso

n;

Reg

ula

tion 3

5(1

2)(

b)(

iii)

(1

1)

‘per

sons

know

n t

o b

e cl

ose

ass

oci

ates

’ m

eans:

R

egula

tion 3

5(1

2)(

c)

(a

) nat

ura

l per

sons

who a

re k

now

n t

o h

ave

join

t ben

efic

ial

ow

ner

ship

of

legal

enti

ties

or

legal

arr

angem

ents

, or

any o

ther

clo

se b

usi

nes

s re

lati

ons,

wit

h a

poli

tica

lly e

xpose

d

per

son;

Reg

ula

tion 3

5(1

2)(

c)(i

)

(b

) nat

ura

l per

sons

who

hav

e so

le b

enef

icia

l o

wner

ship

of

a le

gal

enti

ty o

r le

gal

arra

ngem

ent w

hic

h is

kno

wn to h

ave

bee

n s

et u

p f

or

the

de

fact

o b

enef

it o

f a

poli

tica

lly

expose

d p

erso

n.

Reg

ula

tion 3

5(1

2)(

c)(i

i)

(1

2)‘

senio

r m

anag

emen

t’ m

eans

an o

ffic

er o

r em

plo

yee

wit

h s

uff

icie

nt

know

ledge

of

the

inst

ituti

on's

m

oney

la

un

der

ing

and

terr

ori

st

finan

cin

g

risk

ex

posu

re

and

suff

icie

nt

Reg

ula

tion 3

(1)

senio

rity

to t

ake

dec

isio

ns

affe

ctin

g i

ts r

isk e

xposu

re,

and n

eed

not,

in a

ll c

ases

, b

e a

mem

ber

of

the

bo

ard o

f d

irec

tors

;

(1

3)‘

busi

nes

s re

lati

onsh

ip’

mea

ns

a busi

nes

s, p

rofe

ssio

nal

or

com

mer

cial

rel

atio

nsh

ip w

hic

h

is c

onnec

ted w

ith t

he

pro

fess

ional

act

ivit

ies

of

an o

bli

ged

enti

ty a

nd w

hic

h i

s ex

pec

ted,

at t

he

tim

e w

hen

the

conta

ct i

s es

tabli

shed

, to

hav

e an

ele

men

t of

du

rati

on;

Reg

ula

tion 3

(1);

4

(1

4)‘

gam

bli

ng s

ervic

es’

mea

ns

a se

rvic

e w

hic

h i

nvolv

es w

ager

ing a

sta

ke

wit

h m

onet

ary

val

ue

in g

ames

of

chan

ce, in

cludin

g those

wit

h a

n e

lem

ent of

skil

l su

ch a

s lo

tter

ies,

cas

ino

gam

es,

poker

gam

es a

nd b

etti

ng t

ransa

ctio

ns

that

are

pro

vid

ed a

t a

ph

ysi

cal

loca

tion,

or

by a

ny m

eans

at a

dis

tan

ce,

by e

lect

ronic

mea

ns

or

any o

ther

tec

hnolo

gy f

or

faci

lita

ting

com

munic

atio

n, an

d a

t th

e in

div

idual

req

ues

t of

a re

cipie

nt

of

serv

ices

;

Reg

ula

tion 1

6(4

) (s

ee a

lso r

egula

tion

3(1

) an

d 1

4(b

), f

or

the

def

init

ion o

f

“cas

ino”)

(1

5)‘

gro

up’

mea

ns

a gro

up of

under

takin

gs

whic

h co

nsi

sts

of

a par

ent

un

der

takin

g,

its

subsi

dia

ries

, an

d t

he

enti

ties

in w

hic

h t

he

par

ent

under

takin

g o

r it

s su

bsi

dia

ries

hold

a

par

tici

pat

ion,

as w

ell

as u

nder

takin

gs

linked

to e

ach o

ther

by a

rel

atio

nsh

ip w

ithin

the

mea

nin

g o

f A

rtic

le 2

2 o

f D

irec

tive

2013/3

4/E

U;

Reg

ula

tion 3

(1)

(1

6)‘

elec

tronic

m

oney’

mea

ns

elec

tronic

m

oney as

def

ined

in

poin

t (2

) o

f A

rtic

le 2

of

Dir

ecti

ve

2009/1

10/E

C;

Reg

ula

tion 3

(1)

(1

7)‘

shel

l ban

k’

mea

ns

a cr

edit

inst

ituti

on o

r fi

nan

cial

inst

ituti

on, or

an inst

ituti

on that

car

ries

out

acti

vit

ies

equiv

alen

t to

th

ose

ca

rrie

d

out

by

cred

it

inst

ituti

ons

and

finan

cial

inst

ituti

ons,

inco

rpora

ted i

n a

juri

sdic

tion i

n w

hic

h i

t has

no p

hysi

cal

pre

sen

ce, in

volv

ing

mea

nin

gfu

l m

ind a

nd m

anag

emen

t, a

nd

whic

h i

s unaf

fili

ated

wit

h a

reg

ula

ted f

inan

cial

gro

up.

Reg

ula

tion 3

4(4

)(b)

A

rtic

le 4

N

o t

ransp

osi

tion r

equir

ed

4.1

M

ember

Sta

tes

shal

l, in a

ccord

ance

wit

h the

risk

-bas

ed a

ppro

ach, en

sure

that

the

scope

of

this

Dir

ecti

ve

is e

xte

nded

in w

hole

or

in p

art

to p

rofe

ssio

ns

and t

o c

ateg

ori

es o

f under

takin

gs,

oth

er t

han

the

obli

ged

enti

ties

ref

erre

d t

o i

n A

rtic

le 2

(1),

whic

h e

ngag

e in

act

ivit

ies

whic

h a

re

par

ticu

larl

y l

ikel

y t

o b

e u

sed f

or

the

purp

ose

s of

money

lau

nder

ing o

r te

rrori

st f

inan

cing.

4.2

W

her

e a

Mem

ber

Sta

te e

xte

nds

the

scope

of

this

Dir

ecti

ve

to p

rofe

ssio

ns

or

to c

ateg

ori

es o

f

under

takin

g o

ther

than

those

ref

erre

d t

o i

n A

rtic

le 2

(1),

it

shal

l in

form

the

Com

mis

sion

ther

eof.

A

rtic

le 5

N

o t

ransp

osi

tion r

equir

ed

5

Mem

ber

Sta

tes

may a

do

pt

or

reta

in i

n f

orc

e st

rict

er p

rovis

ions

in t

he

fiel

d c

over

ed b

y t

his

Dir

ecti

ve

to p

reven

t m

oney

lau

nder

ing a

nd ter

rori

st f

inan

cing, w

ithin

the

lim

its

of

Unio

n law

.

S

EC

TIO

N 2

R

isk a

sses

smen

t

A

rtic

le 6

N

o t

ransp

osi

tion r

equir

ed

6.1

T

he

Com

mis

sion s

hal

l co

nduct

an

ass

essm

ent

of

the

risk

s of

money l

aund

erin

g a

nd

ter

rori

st

finan

cin

g a

ffec

tin

g t

he

inte

rnal

mar

ket

and r

elat

ing t

o c

ross

-bord

er a

ctiv

itie

s.

T

o t

hat

end,

the

Com

mis

sion s

hal

l, b

y 2

6 J

une

2017,

dra

w u

p a

rep

ort

iden

tify

ing,

anal

ysi

ng

and e

val

uat

ing t

hose

ris

ks

at U

nio

n l

evel

. T

her

eaft

er,

the

Com

mis

sion s

hal

l updat

e it

s re

port

ever

y t

wo y

ears

, or

mo

re f

requen

tly i

f ap

pro

pri

ate.

6.2

T

he

report

ref

erre

d t

o i

n p

arag

raph 1

shal

l co

ver

at

leas

t th

e fo

llow

ing:

(a

) th

e ar

eas

of

the

inte

rnal

mar

ket

that

are

at

gre

ates

t ri

sk;

(b

) th

e ri

sks

asso

ciat

ed w

ith e

ach r

elev

ant

sect

or;

(c

) th

e m

ost

wid

espre

ad m

eans

use

d b

y c

rim

inal

s by w

hic

h t

o l

aund

er i

llic

it p

roce

eds.

6.3

T

he

Com

mis

sion s

hal

l m

ake

the

report

ref

erre

d t

o i

n p

arag

raph 1

avai

lab

le t

o t

he

Mem

ber

Sta

tes

and o

bli

ged

enti

ties

in o

rder

to a

ssis

t th

em to

iden

tify

, under

stan

d, m

anag

e an

d m

itig

ate

the

risk

of

money

la

un

der

ing

and

terr

ori

st

finan

cin

g,

and

to

allo

w

oth

er

stak

ehold

ers,

incl

udin

g n

atio

nal

leg

isla

tors

, th

e E

uro

pea

n P

arli

amen

t, t

he

ES

As,

and r

epre

senta

tives

fro

m

FIU

s to

bet

ter

under

stan

d t

he

risk

s.

6.4

T

he

Com

mis

sion s

hal

l m

ake

reco

mm

endat

ions

to M

ember

Sta

tes

on t

he

mea

sure

s su

itab

le

for

add

ress

ing t

he

iden

tifi

ed r

isks.

In t

he

even

t th

at M

ember

Sta

tes

dec

ide

not

to a

pply

an

y o

f

the

reco

mm

endat

ions

in t

hei

r nat

ional

AM

L/C

FT

reg

imes

, th

ey s

hal

l noti

fy t

he

Com

mis

sion

ther

eof

and p

rovid

e a

just

ific

atio

n f

or

such

a d

ecis

ion.

6.5

B

y 2

6 D

ecem

ber

2016, th

e E

SA

s, t

hro

ugh t

he

Join

t C

om

mit

tee,

shal

l is

sue

an o

pin

ion o

n t

he

risk

s of

money l

aunder

ing a

nd t

erro

rist

fin

anci

ng a

ffec

ting t

he

Unio

n's

fin

anci

al s

ecto

r (t

he

‘join

t opin

ion’)

. T

her

eaft

er,

the

ES

As,

thro

ugh t

he

Join

t C

om

mit

tee,

shal

l is

sue

an o

pin

ion

ever

y t

wo y

ears

.

6.6

In

condu

ctin

g t

he

asse

ssm

ent

refe

rred

to i

n p

arag

raph 1

, th

e C

om

mis

sion s

hal

l org

anis

e th

e

work

at

Unio

n l

evel

, sh

all

take

into

acc

ount

the

join

t opin

ions

refe

rred

to i

n p

arag

raph 5

and

shal

l in

volv

e th

e M

ember

Sta

tes'

ex

per

ts i

n t

he

area

of

AM

L/C

FT

, re

pre

senta

tives

fro

m F

IUs

and oth

er U

nio

n le

vel

bodie

s w

her

e ap

pro

pri

ate.

T

he

Com

mis

sion sh

all

mak

e th

e jo

int

opin

ions

avai

lable

to the

Mem

ber

Sta

tes

and

obli

ged

enti

ties

in o

rder

to a

ssis

t th

em to iden

tify

,

man

age

and m

itig

ate

the

risk

of

money l

aunder

ing a

nd t

erro

rist

fin

anci

ng.

6.7

E

ver

y t

wo y

ears

, or

more

fre

quen

tly i

f ap

pro

pri

ate,

the

Com

mis

sion s

hal

l su

bm

it a

rep

ort

to

the

Euro

pea

n P

arli

amen

t an

d t

o t

he

Coun

cil

on t

he

findin

gs

resu

ltin

g f

rom

the

regula

r ri

sk

asse

ssm

ents

and t

he

acti

on t

aken

bas

ed o

n t

hose

fin

din

gs.

A

rtic

le 7

7.1

E

ach M

ember

Sta

te s

hal

l ta

ke

appro

pri

ate

step

s to

iden

tify

, as

sess

, under

stan

d a

nd m

itig

ate

the

risk

s of

money

la

under

ing an

d te

rrori

st fi

nan

cin

g af

fect

ing it

, as

w

ell

as an

y dat

a

pro

tect

ion c

once

rns

in t

hat

reg

ard.

It s

hal

l kee

p t

hat

ris

k a

sses

smen

t up t

o d

ate.

Reg

ula

tion 1

6(1

) an

d (

9);

17(1

) an

d

(3)

7.2

E

ach M

ember

Sta

te s

hal

l des

ignat

e an

auth

ori

ty or

esta

bli

sh a

mec

han

ism

by w

hic

h t

o

coord

inat

e th

e nat

ional

res

ponse

to t

he

risk

s re

ferr

ed t

o i

n p

arag

raph 1

. T

he

iden

tity

of

that

auth

ori

ty o

r th

e des

crip

tion o

f th

e m

echan

ism

shal

l be

noti

fied

to t

he

Com

mis

sion, th

e E

SA

s,

and o

ther

Mem

ber

Sta

tes.

No t

ransp

osi

tion r

equir

ed

7.3

In

car

ryin

g o

ut

the

risk

ass

essm

ents

ref

erre

d t

o i

n p

arag

raph 1

of

this

Art

icle

, M

ember

Sta

tes

shal

l m

ake

use

of

the

findin

gs

of

the

report

ref

erre

d t

o i

n A

rtic

le 6

(1).

Reg

ula

tion 1

6(5

); 1

7(2

)(a)

7.4

A

s re

gar

ds

the

risk

ass

essm

ent

refe

rred

to i

n p

arag

raph 1

, ea

ch M

ember

Sta

te s

hal

l:

(a

)use

it to

im

pro

ve

its

AM

L/C

FT

reg

ime,

in p

arti

cula

r b

y iden

tify

ing a

ny a

reas

wher

e obli

ged

enti

ties

are

to a

pply

enh

ance

d m

easu

res

and,

wher

e ap

pro

pri

ate,

spec

ifyin

g t

he

mea

sure

s

to b

e ta

ken

;

Reg

ula

tion 1

6(2

)(a)

(b

)iden

tify

, w

her

e ap

pro

pri

ate,

sec

tors

or

area

s of

low

er o

r gre

ater

ris

k o

f m

oney

lau

nder

ing

and t

erro

rist

fin

anci

ng;

Reg

ula

tion 1

6(2

)(b)

(c

)use

it

to

as

sist

it

in

th

e al

loca

tion an

d pri

ori

tisa

tion of

reso

urc

es to

co

mbat

m

oney

launder

ing a

nd t

erro

rist

fin

anci

ng;

Reg

ula

tion 1

6(3

)(a)

(d

)use

it

to e

nsu

re t

hat

appro

pri

ate

rule

s ar

e dra

wn u

p f

or

each

sec

tor

or

area

, in

acc

ord

ance

wit

h t

he

risk

s of

money

lau

nder

ing a

nd t

erro

rist

fin

anci

ng;

Reg

ula

tion 1

6(2

)(c)

(e

) m

ake

app

ropri

ate

info

rmat

ion av

aila

ble

pro

mptl

y to

obli

ged

en

titi

es to

fa

cili

tate

th

e

carr

yin

g o

ut

of

thei

r ow

n m

oney

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng r

isk a

sses

smen

ts

Reg

ula

tion 1

6(6

), (

8)

7.5

M

ember

Sta

tes

shal

l m

ake

the

resu

lts

of

thei

r ri

sk a

sses

smen

ts a

vai

lable

to t

he

Com

mis

sion,

the

ES

As

and t

he

oth

er M

ember

Sta

tes.

Reg

ula

tion 1

6(7

)

A

rtic

le 8

8.1

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

tak

e ap

pro

pri

ate

step

s to

iden

tify

and a

sses

s

the

risk

s of

money la

under

ing an

d te

rro

rist

fi

nan

cin

g,

takin

g in

to

acco

unt

risk

fa

ctors

incl

udin

g t

hose

rel

atin

g t

o t

hei

r cu

stom

ers,

countr

ies

or

geo

gra

phic

are

as, p

roduct

s, s

ervic

es,

tran

sact

ions

or

del

iver

y c

han

nel

s. T

hose

ste

ps

shal

l be

pro

port

ionat

e to

th

e nat

ure

and

siz

e of

the

obli

ged

enti

ties

.

Reg

ula

tion 1

8(1

), (

2),

(3

)

8.2

T

he

risk

ass

essm

ents

ref

erre

d t

o i

n p

arag

raph 1

shal

l be

docu

men

ted,

kep

t up-t

o-d

ate

and

mad

e av

aila

ble

to t

he

rele

van

t co

mpet

ent

auth

ori

ties

and s

elf-

regula

tory

bodie

s co

nce

rned

.

Com

pet

ent

auth

ori

ties

m

ay d

ecid

e th

at in

div

idual

docu

men

ted ri

sk as

sess

men

ts ar

e not

requir

ed w

her

e th

e sp

ecif

ic r

isks

inher

ent

in t

he

sect

or

are

clea

r an

d u

nd

erst

ood.

Reg

ula

tion 1

8(4

), (

5)

and

(6)

8.3

M

ember

S

tate

s sh

all

ensu

re

that

obli

ged

en

titi

es

hav

e in

pla

ce

poli

cies

, co

ntr

ols

an

d

pro

cedure

s to

mit

igat

e an

d m

anag

e ef

fect

ivel

y t

he

risk

s of

money l

aunder

ing a

nd t

erro

rist

finan

cin

g i

den

tifi

ed a

t th

e le

vel

of

the

Unio

n, th

e M

ember

Sta

te a

nd t

he

ob

liged

enti

ty. T

hose

poli

cies

, co

ntr

ols

and

pro

cedure

s sh

all

be

pro

port

ionat

e to

the

nat

ure

and s

ize

of

the

obli

ged

enti

ties

.

Reg

ula

tion 1

9(1

)

Reg

ula

tion 1

9(2

)(a)

8.4

4. T

he

poli

cies

, co

ntr

ols

and p

roce

du

res

refe

rred

to i

n p

arag

raph 3

sh

all

incl

ude:

(a

)the

dev

elopm

ent

of

inte

rnal

poli

cies

, co

ntr

ols

an

d

pro

cedu

res,

in

cludin

g

model

ri

sk

man

agem

ent pra

ctic

es, cu

stom

er d

ue

dil

igen

ce, re

port

ing, r

ecord

-kee

pin

g, i

nte

rnal

contr

ol,

com

pli

ance

man

agem

ent

incl

udin

g,

wh

ere

app

rop

riat

e w

ith r

egar

d t

o t

he

size

and n

ature

of

the

busi

nes

s, th

e ap

poin

tmen

t of

a co

mpli

ance

off

icer

at

m

anag

emen

t le

vel

, an

d

emplo

yee

scr

eenin

g;

Reg

ula

tion 1

9(3

); 2

1(1

)(a)

,(b)

(b

) w

her

e ap

pro

pri

ate

wit

h r

egar

d t

o t

he

size

and n

ature

of

the

busi

nes

s, a

n i

ndep

enden

t au

dit

funct

ion t

o t

est

the

inte

rnal

poli

cies

, co

ntr

ols

and p

roce

dure

s re

ferr

ed t

o i

n p

oin

t (a

).

Reg

ula

tion 2

1(1

)(c)

5. M

ember

S

tate

s sh

all

requir

e obli

ged

en

titi

es

to

obta

in

appro

val

fr

om

th

eir

senio

r

man

agem

ent

for

the

poli

cies

, co

ntr

ols

and p

roce

dure

s th

at t

hey p

ut

in p

lace

and t

o m

onit

or

and e

nhan

ce t

he

mea

sure

s ta

ken

, w

her

e ap

pro

pri

ate.

Reg

ula

tion 1

9(2

)(b)

S

EC

TIO

N 3

T

hir

d-c

ou

ntr

y poli

cy

A

rtic

le 9

N

o T

ransp

osi

tion r

equir

ed

9.1

T

hir

d-c

ountr

y j

uri

sdic

tio

ns

whic

h h

ave

stra

tegic

def

icie

nci

es i

n t

hei

r n

atio

nal

AM

L/C

FT

regim

es t

hat

pose

sig

nif

ican

t th

reat

s to

the

finan

cial

syst

em o

f th

e U

nio

n (

‘hig

h-r

isk t

hir

d

countr

ies’

) sh

all be

iden

tifi

ed in o

rder

to

pro

tect

the

pro

per

fun

ctio

nin

g o

f th

e in

tern

al m

arket

.

9.2

T

he

Com

mis

sion s

hal

l be

empow

ered

to a

dopt

del

egat

ed a

cts

in a

cco

rdan

ce w

ith A

rtic

le 6

4

in o

rder

to i

den

tify

hig

h-r

isk t

hir

d c

ountr

ies,

tak

ing i

nto

acc

ount

stra

tegic

def

icie

nci

es,

in

par

ticu

lar

in r

elat

ion t

o:

(a

) the

legal

and i

nst

ituti

onal

AM

L/C

FT

fra

mew

ork

of

the

thir

d c

ountr

y, in

par

ticu

lar:

(i)

crim

inal

isat

ion o

f m

oney

lau

nder

ing a

nd t

erro

rist

fin

anci

ng;

(ii)

m

easu

res

rela

tin

g t

o c

ust

om

er d

ue

dil

igen

ce;

(iii

) re

quir

emen

ts r

elat

ing t

o r

ecord

-kee

pin

g;

and

(iv)

requir

emen

ts t

o r

eport

su

spic

ious

tran

sact

ions;

(b

)the

pow

ers

and

pro

cedure

s of

the

thir

d c

ountr

y's

com

pet

ent

auth

ori

ties

fo

r th

e purp

ose

s of

com

bat

ing m

oney l

aunder

ing a

nd t

erro

rist

fin

anci

ng;

(c

)the

effe

ctiv

enes

s of

the

AM

L/C

FT

syst

em i

n a

ddre

ssin

g m

oney l

aunder

ing o

r te

rrori

st

finan

cin

g r

isks

of

the

thir

d c

ountr

y.

9.3

T

he

del

egat

ed a

cts

refe

rred

to i

n p

arag

raph 2

shal

l be

adopte

d w

ithin

one

month

aft

er t

he

iden

tifi

cati

on o

f th

e st

rate

gic

def

icie

nci

es r

efer

red

to i

n t

hat

par

agra

ph.

9.4

T

he

Com

mis

sion s

hal

l ta

ke

into

acc

ount,

as

app

ropri

ate,

when

dra

win

g u

p t

he

del

egat

ed a

cts

refe

rred

to

in

par

agra

ph

2,

rele

van

t ev

aluat

ions,

as

sess

men

ts

or

repo

rts

dra

wn

up

by

inte

rnat

ional

org

anis

atio

ns

and s

tandar

d s

ette

rs w

ith c

om

pet

ence

in t

he

fiel

d o

f pre

ven

ting

money

la

und

erin

g

and

com

bat

ing

terr

ori

st

finan

cing,

in

rela

tion

to

the

risk

s pose

d

by

indiv

idual

thir

d c

ountr

ies.

C

HA

PT

ER

II

C

US

TO

ME

R D

UE

DIL

IGE

NC

E

S

EC

TIO

N 1

G

ener

al

pro

visi

on

s

A

rtic

le 1

0

10.1

M

ember

Sta

tes

shal

l pro

hib

it t

hei

r cr

edit

inst

ituti

ons

and f

inan

cial

inst

ituti

ons

from

kee

pin

g

anon

ym

ous

acco

unts

or

anon

ym

ous

pas

sbooks.

R

egula

tion 2

9(6

)

M

ember

Sta

tes

shal

l, i

n a

ny e

ven

t, r

equir

e th

at t

he

ow

ner

s an

d b

enef

icia

ries

of

exis

ting

anon

ym

ous

acco

unts

or

anon

ym

ous

pas

sbooks

be

subje

ct to c

ust

om

er d

ue

dil

igen

ce m

easu

res

as s

oon a

s poss

ible

and i

n a

ny e

ven

t bef

ore

su

ch a

ccounts

or

pas

sbooks

are

use

d i

n a

ny w

ay.

Reg

ula

tion 2

9(7

)

10.2

M

ember

Sta

tes

shal

l ta

ke

mea

sure

s to

pre

ven

t m

isuse

of

bea

rer

shar

es a

nd b

eare

r sh

are

war

rants

.

Sec

tion 8

4 t

o 8

6 a

nd S

ched

ule

4, P

art

1,

of

the

Sm

all

Busi

nes

s, E

nte

rpri

se

and

Em

plo

ym

ent

Act

2015

and

regula

tion 2

9(8

)

A

rtic

le 1

1

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

apply

cust

om

er d

ue

dil

igen

ce m

easu

res

in

the

foll

ow

ing c

ircu

mst

ance

s:

Reg

ula

tion 2

7

(a

) w

hen

est

abli

shin

g a

busi

nes

s re

lati

onsh

ip;

Reg

ula

tion 2

7(1

)(a)

(b

) w

hen

car

ryin

g o

ut

an o

ccas

ional

tra

nsa

ctio

n t

hat

:

(i

) am

ounts

to E

UR

15 0

00 o

r m

ore

, w

het

her

that

tra

nsa

ctio

n i

s ca

rrie

d o

ut

in

a si

ngle

op

erat

ion o

r in

sev

eral

op

erat

ions

whic

h a

ppea

r to

be

linked

; or

Reg

ula

tion 2

7(2

)

(i

i) c

onst

itute

s a

tran

sfer

of

funds,

as

def

ined

in p

oin

t (9

) o

f A

rtic

le 3

of

Reg

ula

tion (

EU

) 20

15/8

47 o

f th

e E

uro

pea

n P

arli

amen

t an

d o

f th

e C

ounci

l (3

0),

exce

edin

g E

UR

1 0

00;

Reg

ula

tion 2

7(1

)(b)

(c

)in t

he

case

of

per

sons

trad

ing i

n g

oods,

wh

en c

arry

ing o

ut

occ

asio

nal

tra

nsa

ctio

ns

in c

ash a

mounti

ng t

o E

UR

10 0

00 o

r m

ore

, w

het

her

the

tran

sact

ion i

s ca

rrie

d o

ut

in a

sin

gle

oper

atio

n o

r in

sev

eral

op

erat

ions

whic

h a

ppea

r to

be

linked

;

Reg

ula

tion 2

7(3

), (

4)

(d

)for

pro

vid

ers

of

gam

bli

ng s

ervic

es,

upon t

he

coll

ecti

on o

f w

innin

gs,

the

wag

erin

g

of

a st

ake,

or

both

, w

hen

car

ryin

g o

ut

tran

sact

ions

amounti

ng t

o E

UR

2 0

00 o

r

more

, w

het

her

the

tran

sact

ion i

s ca

rrie

d o

ut

in a

sin

gle

oper

atio

n o

r in

sev

eral

oper

atio

ns

whic

h a

pp

ear

to b

e li

nked

;

Reg

ula

tion 2

7(5

)

(e

)when

ther

e is

a s

usp

icio

n o

f m

oney

lau

nd

erin

g o

r te

rrori

st f

inan

cin

g,

regar

dle

ss o

f an

y

der

ogat

ion, ex

empti

on o

r th

resh

old

;

Reg

ula

tion 2

7(1

)(c)

(f

)when

ther

e ar

e doubts

about

the

ver

acit

y o

r ad

equac

y o

f pre

vio

usl

y o

bta

ined

cust

om

er

iden

tifi

cati

on d

ata.

Reg

ula

tion 2

7(1

)(d)

A

rtic

le 1

2

12.1

B

y w

ay o

f der

ogat

ion f

rom

poin

ts (

a),

(b)

and (

c) o

f th

e fi

rst

subpar

agra

ph o

f A

rtic

le 1

3(1

)

and A

rtic

le 1

4, an

d b

ased

on a

n a

ppro

pri

ate

risk

ass

essm

ent

whic

h d

emonst

rate

s a

low

ris

k, a

Mem

ber

S

tate

m

ay

allo

w obli

ged

en

titi

es not

to ap

ply

ce

rtai

n cu

stom

er due

dil

igen

ce

mea

sure

s w

ith

resp

ect

to

elec

tronic

m

oney,

wh

ere

all

of

the

foll

ow

ing

risk

-mit

igat

ing

condit

ions

are

met

:

Reg

ula

tion 3

8

(a

)the

pay

men

t in

stru

men

t is

not re

load

able

, or

has

a m

axim

um

month

ly p

aym

ent tr

ansa

ctio

ns

lim

it o

f E

UR

250 w

hic

h c

an b

e use

d o

nly

in t

hat

Mem

ber

Sta

te;

Reg

ula

tion 3

8(1

)(b)

(b

) th

e m

axim

um

am

ount

store

d e

lect

ronic

ally

does

not

exce

ed E

UR

250;

Reg

ula

tion 3

8(1

)(a)

(c

) th

e paym

ent

inst

rum

ent

is u

sed e

xcl

usi

vel

y t

o p

urc

has

e goods

or

serv

ices

;

Reg

ula

tion 3

8(1

)(c)

(d

) th

e paym

ent

inst

rum

ent

cannot

be

funded

wit

h a

non

ym

ous

elec

tronic

money

;

Reg

ula

tion 3

8(1

)(d)

(e

)the

issu

er c

arri

es o

ut

suff

icie

nt

monit

ori

ng o

f th

e tr

ansa

ctio

ns

or

busi

nes

s re

lati

onsh

ip t

o

enab

le t

he

det

ecti

on o

f u

nusu

al o

r su

spic

ious

tran

sact

ions.

Reg

ula

tion 3

8(3

)

F

or

the

purp

ose

s o

f poin

t (b

) of

the

firs

t su

bpar

agra

ph,

a M

ember

Sta

te m

ay i

ncr

ease

the

max

imum

am

ount to

EU

R 5

00 f

or

paym

ent in

stru

men

ts that

can

be

use

d o

nly

in that

Mem

ber

Sta

te.

12.2

M

ember

Sta

tes

shal

l en

sure

that

the

der

ogat

ion p

rovid

ed f

or

in p

arag

raph

1 i

s not

appli

cable

in t

he

case

of

redem

pti

on i

n c

ash o

r ca

sh w

ithdra

wal

of

the

monet

ary v

alu

e of

the

elec

tronic

money

wh

ere

the

amount

redee

med

ex

ceed

s E

UR

100.

Reg

ula

tion 3

8(2

)

A

rtic

le 1

3

13.1

C

ust

om

er d

ue

dil

igen

ce m

easu

res

shal

l co

mpri

se:

(a

)iden

tify

ing t

he

cust

om

er a

nd v

erif

yin

g t

he

cust

om

er's

iden

tity

on t

he

bas

is o

f docu

men

ts,

dat

a or

info

rmat

ion o

bta

ined

fro

m a

rel

iable

and i

ndep

enden

t so

urc

e;

Reg

ula

tion 2

8(2

)(a)

, (b

) an

d (

18)

(b

)iden

tify

ing t

he

ben

efic

ial

ow

ner

and t

akin

g r

easo

nab

le m

easu

res

to v

erif

y t

hat

per

son's

iden

tity

so t

hat

the

obli

ged

enti

ty i

s sa

tisf

ied t

hat

it

know

s w

ho t

he

ben

efic

ial

ow

ner

is,

incl

udin

g,

as re

gar

ds

legal

per

sons,

tr

ust

s, co

mpan

ies,

fo

undat

ions

and si

mil

ar le

gal

arra

ngem

ents

, ta

kin

g

reas

onab

le

mea

sure

s to

u

nder

stan

d

the

ow

ner

ship

an

d

contr

ol

stru

cture

of

the

cust

om

er;

Reg

ula

tion 2

8(4

) an

d (

18

)

(c

)ass

essi

ng a

nd, as

appro

pri

ate,

obta

inin

g i

nfo

rmat

ion o

n t

he

purp

ose

and i

nte

nded

nat

ure

of

the

busi

nes

s re

lati

onsh

ip;

Reg

ula

tion 2

8(2

)(c)

(d

)conduct

ing

on

goin

g

monit

ori

ng

of

the

busi

nes

s re

lati

onsh

ip

incl

udin

g

scru

tin

y

of

tran

sact

ions

under

tak

en th

roughout

the

cours

e o

f th

at re

lati

onsh

ip to

en

sure

th

at th

e

tran

sact

ions

bei

ng c

ondu

cted

are

consi

sten

t w

ith t

he

obli

ged

enti

ty's

kno

wle

dge

of

the

cust

om

er, th

e busi

nes

s an

d r

isk p

rofi

le, in

cludin

g w

her

e nec

essa

ry t

he

sourc

e of

funds

and

ensu

ring t

hat

the

docu

men

ts, dat

a or

info

rmat

ion h

eld a

re k

ept

up-t

o-d

ate.

Reg

ula

tion 2

8(1

1)

W

hen

per

form

ing t

he

mea

sure

s re

ferr

ed t

o i

n p

oin

ts (

a) a

nd (

b)

of

the

firs

t su

bpar

agra

ph,

obli

ged

enti

ties

shal

l al

so v

erif

y t

hat

an

y p

erso

n p

urp

ort

ing t

o a

ct o

n b

ehal

f of

the

cust

om

er

is s

o a

uth

ori

sed a

nd i

den

tify

and v

erif

y t

he

iden

tity

of

that

per

son

Reg

ula

tion 2

8(1

0)

and (

18)

13.2

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

apply

eac

h o

f th

e cu

stom

er d

ue

dil

igen

ce

requir

emen

ts l

aid d

ow

n i

n p

arag

raph 1

. H

ow

ever

, obli

ged

enti

ties

may d

eter

min

e th

e ex

tent

of

such

mea

sure

s on a

ris

k-s

ensi

tive

bas

is.

Reg

ula

tion 2

8(1

2)

13.3

M

ember

Sta

tes

shal

l re

quir

e th

at o

bli

ged

enti

ties

tak

e in

to a

ccount

at l

east

the

var

iable

s se

t

out

in A

nnex

I w

hen

ass

essi

ng t

he

risk

s of

money l

aunder

ing a

nd t

erro

rist

fin

anci

ng.

Reg

ula

tion 2

8(1

3)

13.4

M

ember

S

tate

s sh

all

ensu

re th

at obli

ged

en

titi

es ar

e ab

le to

dem

onst

rate

to

co

mpet

ent

auth

ori

ties

or

self

-reg

ula

tory

bodie

s th

at t

he

mea

sure

s ar

e ap

pro

pri

ate

in v

iew

of

the

risk

s of

money

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng t

hat

hav

e bee

n i

den

tifi

ed.

Reg

ula

tion 2

8(1

6)

13.5

F

or

life

or

oth

er i

nves

tmen

t-re

late

d i

nsu

rance

busi

nes

s, M

ember

Sta

tes

shal

l en

sure

that

, in

addit

ion t

o t

he

cust

om

er d

ue

dil

igen

ce m

easu

res

requir

ed f

or

the

cust

om

er a

nd t

he

ben

efic

ial

ow

ner

, cr

edit

in

stit

uti

ons

and fi

nan

cial

in

stit

uti

ons

conduct

th

e fo

llow

ing cu

stom

er due

Reg

ula

tion 2

9

dil

igen

ce

mea

sure

s on

the

ben

efic

iari

es

of

life

in

sura

nce

an

d

oth

er

inves

tmen

t-re

late

d

insu

rance

poli

cies

, as

soon a

s th

e ben

efic

iari

es a

re i

den

tifi

ed o

r des

ignat

ed:

(a

)in t

he

case

of

ben

efic

iari

es t

hat

are

iden

tifi

ed a

s sp

ecif

ical

ly n

amed

per

sons

or

legal

arra

ngem

ents

, ta

kin

g t

he

nam

e of

the

per

son;

Reg

ula

tion 2

9(3

)(a)

(b

)in t

he

case

of

ben

efic

iari

es t

hat

are

des

ign

ated

by c

har

acte

rist

ics

or

by c

lass

or

by o

ther

mea

ns,

obta

inin

g s

uff

icie

nt in

form

atio

n c

once

rnin

g those

ben

efic

iari

es to s

atis

fy the

cred

it

inst

ituti

ons

or

finan

cial

inst

ituti

on t

hat

it

wil

l be

able

to e

stab

lish

the

iden

tity

of

the

ben

efic

iary

at

the

tim

e of

the

payout.

Reg

ula

tion 2

9(3

)(b)

W

ith r

egar

d t

o p

oin

ts (

a) a

nd (

b)

of

the

firs

t su

bpar

agra

ph,

the

ver

ific

atio

n o

f th

e id

enti

ty o

f

the

ben

efic

iari

es s

hal

l ta

ke

pla

ce a

t th

e ti

me

of

the

pay

out.

In the

case

of

assi

gnm

ent,

in w

hole

or

in p

art,

of

the

life

or

oth

er i

nves

tmen

t-re

late

d i

nsu

rance

to a

thir

d p

arty

, cr

edit

inst

ituti

ons

and f

inan

cial

inst

ituti

ons

awar

e o

f th

e as

signm

ent

shal

l id

enti

fy t

he

ben

efic

ial

ow

ner

at

the

tim

e of

the

assi

gnm

ent

to t

he

nat

ura

l or

legal

per

son o

r le

gal

arr

angem

ent

rece

ivin

g f

or

its

ow

n b

enef

it t

he

val

ue

of

the

poli

cy a

ssig

ned

.

Reg

ula

tion 2

9(4

) an

d (

5)

13.6

In

th

e ca

se o

f b

enef

icia

ries

of

trust

s or

of

sim

ilar

leg

al a

rran

gem

ents

that

are

des

ignat

ed b

y

par

ticu

lar

char

acte

rist

ics

or

clas

s,

an

obli

ged

en

tity

sh

all

obta

in

suff

icie

nt

info

rmat

ion

conce

rnin

g t

he

ben

efic

iary

to s

atis

fy t

he

obli

ged

enti

ty t

hat

it

wil

l be

able

to e

stab

lish

the

iden

tity

of

the

ben

efic

iary

at

the

tim

e of

the

pay

out

or

at t

he

tim

e of

the

exer

cise

by t

he

ben

efic

iary

of

its

ves

ted r

ights

.

Reg

ula

tion 3

0(6

), (

7)

A

rtic

le 1

4

14.1

M

ember

Sta

tes

shal

l re

qu

ire

that

ver

ific

atio

n o

f th

e id

enti

ty o

f th

e cu

stom

er a

nd the

ben

efic

ial

ow

ner

tak

e pla

ce b

efo

re t

he

esta

bli

shm

ent of

a busi

nes

s re

lati

onsh

ip o

r th

e ca

rryin

g o

ut o

f th

e

tran

sact

ion.

Reg

ula

tion 3

0(2

)

14.2

B

y w

ay o

f der

ogat

ion f

rom

par

agra

ph 1

, M

ember

Sta

tes

may

all

ow

ver

ific

atio

n o

f th

e id

enti

ty

of

the

cust

om

er a

nd t

he

ben

efic

ial

ow

ner

to b

e co

mple

ted d

uri

ng t

he

esta

bli

shm

ent

of

a

busi

nes

s re

lati

onsh

ip i

f nec

essa

ry s

o a

s not

to i

nte

rrupt

the

norm

al c

onduct

of

busi

nes

s an

d

wher

e th

ere

is l

ittl

e ri

sk o

f m

oney

lau

nder

ing o

r te

rrori

st f

inan

cin

g.

In s

uch

sit

uat

ions,

those

pro

cedure

s sh

all

be

com

ple

ted a

s so

on a

s pra

ctic

able

aft

er i

nit

ial

conta

ct.

Reg

ula

tion 3

0(3

)

14.3

B

y w

ay o

f d

ero

gat

ion f

rom

par

agra

ph 1

, M

emb

er S

tate

s m

ay a

llow

the

op

enin

g o

f an

acc

ount

wit

h a

cre

dit

inst

ituti

on o

r fi

nan

cial

inst

ituti

on, in

cludin

g a

ccounts

that

per

mit

tra

nsa

ctio

ns

in

tran

sfer

able

sec

uri

ties

, pro

vid

ed t

hat

ther

e ar

e ad

equat

e sa

feguar

ds

in p

lace

to e

nsu

re t

hat

tran

sact

ions

are

not

carr

ied o

ut

by t

he

cust

om

er o

r on i

ts b

ehal

f unti

l fu

ll c

om

pli

ance

wit

h t

he

cust

om

er d

ue

dil

igen

ce r

equir

emen

ts l

aid d

ow

n i

n p

oin

ts (

a) a

nd (

b)

of

the

firs

t su

bpar

agra

ph

of

Art

icle

13(1

) is

obta

ined

.

Reg

ula

tion 3

0(4

) an

d (

5)

14.4

M

ember

Sta

tes

shal

l re

quir

e th

at,

wher

e an

obli

ged

enti

ty i

s unab

le t

o c

om

ply

wit

h t

he

cust

om

er d

ue

dil

igen

ce r

equir

emen

ts lai

d d

ow

n in p

oin

t (a

), (

b)

or

(c)

of

the

firs

t su

bpar

agra

ph

of

Art

icle

13(1

), i

t sh

all

not

carr

y o

ut

a tr

ansa

ctio

n t

hro

ugh a

ban

k a

ccount,

est

abli

sh a

busi

nes

s re

lati

onsh

ip o

r ca

rry o

ut th

e tr

ansa

ctio

n, a

nd s

hal

l te

rmin

ate

the

busi

nes

s re

lati

onsh

ip

and c

onsi

der

mak

ing a

su

spic

ious

tran

sact

ion r

epo

rt t

o t

he

FIU

in r

elat

ion t

o t

he

cust

om

er i

n

acco

rdan

ce w

ith A

rtic

le 3

3.

Reg

ula

tion 3

1(1

)

M

ember

Sta

tes

shal

l not

apply

the

firs

t su

bpar

agra

ph t

o n

ota

ries

, oth

er i

ndep

enden

t le

gal

pro

fess

ional

s, a

udit

ors

, ex

tern

al a

ccounta

nts

and t

ax a

dvis

ors

only

to t

he

stri

ct e

xte

nt

that

those

per

sons

asce

rtai

n t

he

legal

posi

tion o

f th

eir

clie

nt,

or

per

form

the

task

of

def

endin

g o

r

repre

senti

ng th

at c

lien

t in

, or

conce

rnin

g, ju

dic

ial p

roce

edin

gs,

in

cludin

g p

rovid

ing a

dvic

e on

inst

ituti

ng o

r av

oid

ing s

uch

pro

ceed

ings.

Reg

ula

tion 3

1(3

), (

4)

14.5

M

ember

Sta

tes

shal

l re

quir

e th

at o

bli

ged

enti

ties

apply

the

cust

om

er d

ue

dil

igen

ce m

easu

res

not

only

to a

ll n

ew c

ust

om

ers

but

also

at

appro

pri

ate

tim

es t

o e

xis

ting c

ust

om

ers

on a

ris

k-

sensi

tive

bas

is, in

cludin

g a

t ti

mes

when

the

rele

van

t ci

rcum

stan

ces

of

a cu

stom

er c

han

ge.

Reg

ula

tion 2

7(8

), (

9)

S

EC

TIO

N 2

S

impli

fied

cu

stom

er d

ue

dil

igen

ce

A

rtic

le 1

5

15.1

W

her

e a

Mem

ber

Sta

te o

r an

obli

ged

enti

ty i

den

tifi

es a

reas

of

low

er r

isk,

that

Mem

ber

Sta

te

may

all

ow

obli

ged

enti

ties

to a

pply

sim

pli

fied

cust

om

er d

ue

dil

igen

ce m

easu

res.

Reg

ula

tion 3

7(1

)

15.2

B

efo

re a

pply

ing s

impli

fied

cust

om

er d

ue

dil

igen

ce m

easu

res,

obli

ged

enti

ties

shal

l as

cert

ain

that

the

busi

nes

s re

lati

on

ship

or

the

tran

sact

ion p

rese

nts

a l

ow

er d

egre

e of

risk

.

Reg

ula

tion 3

7(1

), (

5)(

a) a

nd (

8)

15.3

M

ember

S

tate

s sh

all

ensu

re th

at obli

ged

en

titi

es ca

rry out

suff

icie

nt

monit

ori

ng of

the

tran

sact

ions

and busi

nes

s re

lati

onsh

ips

to en

able

th

e det

ecti

on of

unusu

al or

susp

icio

us

tran

sact

ions.

Reg

ula

tion 3

7(2

)

A

rtic

le 1

6

16

When

ass

essi

ng t

he

risk

s of

money

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng r

elat

ing t

o t

yp

es o

f

cust

om

ers,

geo

gra

phic

ar

eas,

an

d

par

ticu

lar

pro

duct

s,

serv

ices

, tr

ansa

ctio

ns

or

del

iver

y

chan

nel

s, M

ember

Sta

tes

and o

bli

ged

enti

ties

shal

l ta

ke

into

acc

ount

at l

east

the

fact

ors

of

pote

nti

ally

low

er r

isk s

ituat

ions

set

out

in A

nnex

II.

Reg

ula

tion 3

7(3

)

A

rtic

le 1

7

17

By 2

6 J

une

2017, th

e E

SA

s sh

all

issu

e guid

elin

es a

ddre

ssed

to c

om

pet

ent

auth

ori

ties

and t

he

cred

it inst

ituti

ons

and f

inan

cial

inst

ituti

ons

in a

ccord

ance

wit

h A

rtic

le 1

6 o

f R

egula

tions

(EU

)

No 1

093/2

010,

(EU

) N

o 1

094/2

010,

and (

EU

) N

o 1

095/2

010 o

n t

he

risk

fac

tors

to b

e ta

ken

into

consi

der

atio

n a

nd t

he

mea

sure

s to

be

taken

in s

ituat

ions

wher

e si

mpli

fied

cust

om

er d

ue

dil

igen

ce m

easu

res

are

appro

pri

ate.

Spec

ific

acc

ount

shal

l be

tak

en o

f th

e nat

ure

and s

ize

of

the

busi

nes

s, a

nd, w

her

e ap

pro

pri

ate

and p

roport

ionat

e, s

pec

ific

mea

sure

s sh

all

be

laid

dow

n.

No t

ransp

osi

tion r

equir

ed

S

EC

TIO

N 3

E

nh

an

ced c

ust

om

er d

ue

dil

igen

ce

A

rtic

le 1

8

18.1

In

the

case

s re

ferr

ed t

o i

n A

rtic

les

19

to 2

4,

and w

hen

dea

ling w

ith n

atura

l per

sons

or

legal

enti

ties

est

abli

shed

in t

he

thir

d c

ountr

ies

iden

tifi

ed b

y t

he

Com

mis

sion a

s hig

h-r

isk t

hir

d

Reg

ula

tion 3

3(1

)(a)

, (b

), (

c),

(d)

and

(g)

countr

ies,

as

wel

l as

in o

ther

cas

es o

f hig

her

ris

k t

hat

are

iden

tifi

ed b

y M

ember

Sta

tes

or

obli

ged

enti

ties

, M

ember

Sta

tes

shal

l re

quir

e obli

ged

enti

ties

to a

pply

enh

ance

d c

ust

om

er d

ue

dil

igen

ce m

easu

res

to m

anag

e an

d m

itig

ate

those

ris

ks

appro

pri

atel

y.

E

nhan

ced c

ust

om

er d

ue

dil

igen

ce m

easu

res

nee

d n

ot

be

invoked

auto

mat

ical

ly w

ith r

espec

t

to b

ranch

es o

r m

ajori

ty-o

wned

subsi

dia

ries

of

obli

ged

enti

ties

est

abli

shed

in the

Unio

n w

hic

h

are

loca

ted i

n h

igh-r

isk t

hir

d c

ountr

ies,

wh

ere

tho

se b

ran

ches

or

maj

ori

ty-o

wned

subsi

dia

ries

full

y c

om

ply

wit

h t

he

gro

up-w

ide

poli

cies

and p

roce

dure

s in

acc

ord

ance

wit

h A

rtic

le 4

5.

Mem

ber

Sta

tes

shal

l en

sure

that

those

cas

es a

re h

andle

d b

y o

bli

ged

enti

ties

by u

sin

g a

ris

k-

bas

ed a

ppro

ach.

Reg

ula

tion 3

3(2

)

18.2

M

ember

Sta

tes

shal

l re

quir

e obli

ged

enti

ties

to e

xam

ine,

as

far

as r

easo

nab

ly p

oss

ible

, th

e

bac

kgro

und

and p

urp

ose

of

all

com

ple

x a

nd u

nu

sual

ly l

arge

tran

sact

ions,

and a

ll u

nusu

al

pat

tern

s of

tran

sact

ions,

whic

h h

ave

no a

ppar

ent

econom

ic o

r la

wfu

l purp

ose

. In

par

ticu

lar,

obli

ged

en

titi

es

shal

l in

crea

se

the

deg

ree

and

nat

ure

of

monit

ori

ng

of

the

busi

nes

s

rela

tionsh

ip, in

ord

er t

o d

eter

min

e w

het

her

those

tra

nsa

ctio

ns

or

acti

vit

ies

appea

r su

spic

ious.

Reg

ula

tion 3

3(1

)(f)

and (

4)

18.3

W

hen

ass

essi

ng t

he

risk

s of

money l

aund

erin

g a

nd t

erro

rist

fin

anci

ng,

Mem

ber

Sta

tes

and

obli

ged

enti

ties

shal

l ta

ke

into

acc

ount

at l

east

the

fact

ors

of

pote

nti

ally

hig

her

-ris

k s

ituat

ions

set

out

in A

nnex

III

.

Reg

ula

tion 3

3(6

)

B

y 2

6 J

une

2017, th

e E

SA

s sh

all

issu

e guid

elin

es a

ddre

ssed

to c

om

pet

ent

auth

ori

ties

and t

he

cred

it i

nst

ituti

ons

and f

inan

cial

inst

ituti

ons,

in a

ccord

ance

wit

h A

rtic

le 1

6 o

f R

egula

tions

(EU

) N

o 1

093/2

010,

(EU

) N

o 1

094/2

010,

and (

EU

) N

o 1

095/2

010 o

n t

he

risk

fac

tors

to b

e

taken

into

consi

der

atio

n a

nd t

he

mea

sure

s to

be

taken

in s

ituat

ions

wher

e en

han

ced c

ust

om

er

due

dil

igen

ce m

easu

res

are

appro

pri

ate.

Spec

ific

acc

ount

shal

l be

taken

of

the

nat

ure

and s

ize

of

the

busi

nes

s, a

nd,

wher

e ap

pro

pri

ate

and p

rop

ort

ionat

e, s

pec

ific

mea

sure

s sh

all

be

laid

dow

n.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 1

9

19

Wit

h r

espec

t to

cro

ss-b

ord

er c

orr

esponden

t re

lati

onsh

ips

wit

h a

thir

d-c

ountr

y r

espond

ent

inst

ituti

on, M

ember

Sta

tes

shal

l, in a

ddit

ion to the

cust

om

er d

ue

dil

igen

ce m

easu

res

laid

dow

n

in A

rtic

le 1

3, re

quir

e th

eir

cred

it i

nst

ituti

ons

and f

inan

cial

inst

ituti

ons

to:

Reg

ula

tion 3

4

(a

)gat

her

suff

icie

nt in

form

atio

n a

bout th

e re

sponden

t in

stit

uti

on to u

nder

stan

d f

ull

y the

nat

ure

of

the

resp

onden

t's

busi

nes

s an

d t

o d

eter

min

e fr

om

publi

cly a

vai

lable

info

rmat

ion t

he

reputa

tion o

f th

e in

stit

uti

on a

nd t

he

qual

ity o

f su

per

vis

ion;

Reg

ula

tion 3

4(1

)(a)

, (b

)

(b

) as

sess

the

resp

ond

ent

inst

ituti

on's

AM

L/C

FT

contr

ols

;

Reg

ula

tion 3

4(1

)(c)

(c

)obta

in

appro

val

fr

om

se

nio

r m

anag

emen

t bef

ore

es

tabli

shin

g

new

co

rres

pond

ent

rela

tionsh

ips;

Reg

ula

tion 3

4(1

)(d)

(d

) docu

men

t th

e re

spec

tive

resp

onsi

bil

itie

s of

each

inst

ituti

on;

Reg

ula

tion 3

4(1

)(e)

(e

)wit

h r

espec

t to

payab

le-t

hro

ugh

acc

ounts

, be

sati

sfie

d t

hat

the

resp

onden

t in

stit

uti

on h

as

ver

ifie

d t

he

iden

tity

of,

and p

erfo

rmed

on

goin

g d

ue

dil

igen

ce o

n,

the

cust

om

ers

hav

ing

dir

ect

acce

ss t

o a

ccounts

of

the

corr

esponden

t in

stit

uti

on,

and t

hat

it

is a

ble

to p

rovid

e

rele

van

t cu

stom

er d

ue

dil

igen

ce d

ata

to t

he

corr

esp

onden

t in

stit

uti

on, upon r

eques

t.

Reg

ula

tion 3

4(1

)(f)

A

rtic

le 2

0

20

Wit

h re

spec

t to

tr

ansa

ctio

ns

or

busi

nes

s re

lati

onsh

ips

wit

h poli

tica

lly ex

pose

d per

sons,

Mem

ber

Sta

tes

shal

l, i

n a

ddit

ion t

o t

he

cust

om

er d

ue

dil

igen

ce m

easu

res

laid

dow

n i

n A

rtic

le

13, re

quir

e obli

ged

enti

ties

to:

Reg

ula

tion 3

5

(a

)hav

e in

pla

ce a

ppro

pri

ate

risk

man

agem

ent

syst

ems,

incl

udin

g r

isk-b

ased

pro

cedu

res,

to

det

erm

ine

whet

her

the

cust

om

er o

r th

e ben

efic

ial

ow

ner

of

the

cust

om

er i

s a

poli

tica

lly

expose

d p

erso

n;

Reg

ula

tion 3

5(1

)

(b

) ap

ply

th

e fo

llow

ing m

easu

res

in c

ases

of

busi

nes

s re

lati

onsh

ips

wit

h p

oli

tica

lly e

xpose

d

per

sons:

Reg

ula

tion 3

5(5

)

(i

) obta

in

senio

r m

anag

emen

t ap

pro

val

fo

r es

tabli

shin

g

or

conti

nuin

g

busi

nes

s

rela

tionsh

ips

wit

h s

uch

per

sons;

Reg

ula

tion 3

5(5

)(a)

(i

i) t

ake

adeq

uat

e m

easu

res

to e

stab

lish

the

sourc

e of

wea

lth a

nd s

ourc

e of

funds

that

are

involv

ed i

n b

usi

nes

s re

lati

onsh

ips

or

tran

sact

ions

wit

h s

uch

per

sons;

Reg

ula

tion 3

5(5

)(b)

(i

ii)

conduct

enhan

ced, o

ngoin

g m

onit

ori

ng o

f th

ose

busi

nes

s re

lati

onsh

ips.

R

egula

tion 3

5(5

)(c)

A

rtic

le 2

1

21

Mem

ber

S

tate

s sh

all

requir

e obli

ged

en

titi

es to

ta

ke

reas

onab

le m

easu

res

to det

erm

ine

whet

her

the

ben

efic

iari

es o

f a

life

or

oth

er i

nves

tmen

t-re

late

d i

nsu

rance

poli

cy a

nd/o

r, w

her

e

requir

ed,

the

ben

efic

ial

ow

ner

of

the

ben

efic

iary

ar

e poli

tica

lly e

xpose

d p

erso

ns.

Those

mea

sure

s sh

all be

taken

no lat

er than

at th

e ti

me

of

the

pay

out or

at the

tim

e of

the

assi

gnm

ent,

in w

hole

or

in p

art,

of

the

poli

cy.

Reg

ula

tion 3

5(6

), (

7)

W

her

e th

ere

are

hig

her

ris

ks

iden

tifi

ed,

in a

ddit

ion t

o a

pply

ing t

he

cust

om

er d

ue

dil

igen

ce

mea

sure

s la

id d

ow

n i

n A

rtic

le 1

3, M

ember

Sta

tes

shal

l re

quir

e obli

ged

enti

ties

to:

(a

) in

form

sen

ior

man

agem

ent

bef

ore

payout

of

poli

cy p

roce

eds;

Reg

ula

tion 3

5(8

)(a)

(b

)co

nduct

en

han

ced

scru

tin

y

of

the

enti

re

busi

nes

s re

lati

onsh

ip

wit

h

the

poli

cyhold

er.

Reg

ula

tion 3

5(8

)(b)

A

rtic

le 2

2

22

Wher

e a

poli

tica

lly e

xpose

d p

erso

n i

s no l

onger

entr

ust

ed w

ith a

pro

min

ent

publi

c fu

nct

ion

by a

Mem

ber

Sta

te o

r a

thir

d c

ountr

y, or

wit

h a

pro

min

ent

publi

c fu

nct

ion b

y a

n i

nte

rnat

ional

org

anis

atio

n, obli

ged

enti

ties

shal

l, f

or

at lea

st 1

2 m

onth

s, b

e re

quir

ed to tak

e in

to a

ccount th

e

conti

nuin

g r

isk p

ose

d b

y t

hat

per

son

and t

o a

pply

appro

pri

ate

and

ris

k-s

ensi

tive

mea

sure

s

unti

l su

ch t

ime

as t

hat

per

son i

s dee

med

to p

ose

no f

urt

her

ris

k s

pec

ific

to p

oli

tica

lly e

xpose

d

per

sons.

Reg

ula

tion 3

5(9

)

A

rtic

le 2

3

23

The

mea

sure

s re

ferr

ed t

o i

n A

rtic

les

20

and 2

1 s

hal

l al

so a

pply

to f

amil

y m

ember

s or

per

sons

know

n t

o b

e cl

ose

ass

oci

ates

of

poli

tica

lly e

xpose

d p

erso

ns.

Reg

ula

tion 3

5(1

)(b);

(3

); (

5);

(6)(

b);

(8)(

b)

A

rtic

le 2

4

24

Mem

ber

Sta

tes

shal

l pro

hib

it c

redit

inst

ituti

ons

and f

inan

cial

inst

ituti

ons

from

ente

ring i

nto

,

or

conti

nuin

g,

a co

rres

po

nden

t re

lati

onsh

ip w

ith a

shel

l ban

k.

They

shal

l re

quir

e th

at t

hose

inst

ituti

ons

take

appro

pri

ate

mea

sure

s to

ensu

re t

hat

they

do n

ot

engag

e in

or

conti

nue

Reg

ula

tion 3

4(2

), (

3)

corr

espond

ent

rela

tionsh

ips

wit

h a

cre

dit

inst

ituti

on o

r fi

nan

cial

inst

ituti

on t

hat

is

know

n t

o

allo

w i

ts a

ccounts

to b

e u

sed b

y a

shel

l ban

k.

S

EC

TIO

N 4

P

erfo

rman

ce b

y th

ird p

art

ies

A

rtic

le 2

5

25

Mem

ber

Sta

tes

may p

erm

it o

bli

ged

enti

ties

to r

ely o

n t

hir

d p

arti

es t

o m

eet

the

cust

om

er d

ue

dil

igen

ce r

equir

emen

ts l

aid d

ow

n i

n p

oin

ts (

a), (b

) an

d (

c) o

f th

e fi

rst

subpar

agra

ph o

f A

rtic

le

13(1

). H

ow

ever

, th

e ult

imat

e re

sponsi

bil

ity f

or

mee

ting t

hose

req

uir

emen

ts s

hal

l re

mai

n w

ith

the

obli

ged

enti

ty w

hic

h r

elie

s on t

he

thir

d p

arty

.

Reg

ula

tion 3

9(1

)

A

rtic

le 2

6

26.1

F

or

the

purp

ose

s of

this

Sec

tion,

‘thir

d p

arti

es’

mea

ns

obli

ged

enti

ties

lis

ted i

n A

rtic

le 2

, th

e

mem

ber

org

anis

atio

ns

or

feder

atio

ns

of

those

obli

ged

enti

ties

, or

oth

er i

nst

ituti

ons

or

per

sons

situ

ated

in a

Mem

ber

Sta

te o

r th

ird c

ountr

y t

hat

:

Reg

ula

tion 3

9(3

)

(a

)apply

cust

om

er d

ue

dil

igen

ce r

equir

emen

ts a

nd r

ecord

-kee

pin

g r

equir

emen

ts t

hat

are

consi

sten

t w

ith t

hose

lai

d d

ow

n i

n t

his

Dir

ecti

ve;

and

Reg

ula

tion 3

9(3

)(a)

, (b

), (

c)(i

); a

nd

(d)

(b

) hav

e th

eir

com

pli

ance

wit

h t

he

requir

emen

ts o

f th

is D

irec

tive

super

vis

ed i

n a

man

ner

consi

sten

t w

ith S

ecti

on 2

of

Chap

ter

VI

Reg

ula

tion 3

9(3

)(a)

, (b

), (

c)(i

i) a

nd

(d)

26.2

M

ember

Sta

tes

shal

l pro

hib

it o

bli

ged

enti

ties

fro

m r

elyin

g o

n thir

d p

arti

es e

stab

lish

ed in h

igh-

risk

thir

d c

ountr

ies.

Mem

ber

Sta

tes

may

ex

empt

bra

nch

es a

nd m

ajori

ty-o

wned

subsi

dia

ries

of

obli

ged

enti

ties

est

abli

shed

in t

he

Unio

n f

rom

that

pro

hib

itio

n w

her

e th

ose

bra

nch

es a

nd

maj

ori

ty-o

wn

ed s

ubsi

dia

ries

full

y c

om

ply

wit

h t

he

gro

up-w

ide

poli

cies

and p

roce

dure

s in

acco

rdan

ce w

ith A

rtic

le 4

5.

Reg

ula

tion 3

9(4

), (

5)

A

rtic

le 2

7

27.1

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

obta

in f

rom

the

thir

d p

arty

rel

ied u

pon t

he

nec

essa

ry i

nfo

rmat

ion c

once

rnin

g t

he

cust

om

er d

ue

dil

igen

ce r

equir

emen

ts l

aid d

ow

n i

n

poin

ts (

a), (b

) an

d (

c) o

f th

e fi

rst

subpar

agra

ph o

f A

rtic

le 1

3(1

).

Reg

ula

tion 3

9(2

)(a)

and 4

0(7

)(a)

27.2

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

to w

hic

h t

he

cust

om

er i

s re

ferr

ed t

ake

adeq

uat

e st

eps

to e

nsu

re t

hat

the

thir

d p

arty

pro

vid

es,

imm

edia

tely

, upon

req

ues

t, r

elev

ant

copie

s of

iden

tifi

cati

on a

nd v

erif

icat

ion d

ata

and o

ther

rel

evan

t docu

men

tati

on o

n the

iden

tity

of

the

cust

om

er o

r th

e ben

efic

ial

ow

ner

.

Reg

ula

tion 3

9(2

)(b)

and 4

0(7

)(b);

A

rtic

le 2

8

28

Mem

ber

Sta

tes

shal

l en

sure

that

the

com

pet

ent

auth

ori

ty o

f th

e hom

e M

ember

Sta

te (

for

gro

up

-wid

e poli

cies

and p

roce

dure

s) a

nd t

he

com

pet

ent

auth

ori

ty o

f th

e h

ost

Mem

ber

Sta

te

(for

bra

nch

es a

nd s

ubsi

dia

ries

) m

ay c

onsi

der

an o

bli

ged

enti

ty t

o c

om

ply

wit

h t

he

pro

vis

ions

adopte

d p

urs

uan

t to

Art

icle

s 26 a

nd 2

7 t

hro

ugh

its

gro

up p

rogra

mm

e, w

her

e al

l of

the

foll

ow

ing c

ondit

ions

are

met

:

Reg

ula

tion 3

9(6

)

(a

)the

obli

ged

enti

ty r

elie

s on i

nfo

rmat

ion p

rovid

ed b

y a

thir

d p

arty

that

is

par

t of

the

sam

e

gro

up;

Reg

ula

tion 3

9(6

)(a)

(b

)that

gro

up

appli

es

cust

om

er

due

dil

igen

ce

mea

sure

s,

rule

s on

reco

rd-k

eepin

g

and

pro

gra

mm

es a

gai

nst

mo

ney

lau

nder

ing a

nd t

erro

rist

fin

anci

ng i

n a

cco

rdan

ce w

ith t

his

Dir

ecti

ve

or

equiv

alen

t ru

les;

Reg

ula

tion 3

9(6

)(b)

(c

)the

effe

ctiv

e im

ple

men

tati

on o

f th

e re

quir

emen

ts r

efer

red t

o i

n p

oin

t (b

) is

super

vis

ed a

t

gro

up l

evel

by a

com

pet

ent

auth

ori

ty o

f th

e hom

e M

ember

Sta

te o

r of

the

thir

d c

ountr

y.

Reg

ula

tion 3

9(6

)(c)

A

rtic

le 2

9

29

This

Sec

tion s

hal

l not

apply

to o

uts

ourc

ing o

r ag

ency

rel

atio

nsh

ips

wher

e, o

n t

he

bas

is o

f a

contr

actu

al a

rran

gem

ent,

the

outs

ourc

ing s

ervic

e pro

vid

er o

r ag

ent

is t

o b

e re

gar

ded

as

par

t

of

the

obli

ged

enti

ty.

Reg

ula

tion 3

9(7

), (

8)

and

40(8

)

C

HA

PT

ER

III

B

EN

EF

ICIA

L O

WN

ER

SH

IP I

NF

OR

MA

TIO

N

A

rtic

le 3

0

30.1

M

ember

Sta

tes

shal

l en

sure

that

corp

ora

te a

nd o

ther

leg

al e

nti

ties

inco

rpo

rate

d w

ithin

thei

r

terr

itory

are

req

uir

ed t

o o

bta

in a

nd h

old

adeq

uat

e, a

ccura

te a

nd c

urr

ent

info

rmat

ion o

n t

hei

r

ben

efic

ial

ow

ner

ship

, in

cludin

g t

he

det

ails

of

the

ben

efic

ial

inte

rest

s hel

d.

Sec

tions

790D

, 790E

, 790K

an

d

790M

, an

d

Sch

edule

1A

to

th

e

Com

pan

ies

Act

2006

(wit

h

cert

ain

modif

icat

ions

for

Soci

etas

Euro

pae

a

(SE

s) i

n r

egula

tions

4 t

o 6

Euro

pea

n

Publi

c L

imit

ed-L

iabil

ity

Com

pan

y

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

20

16)

Reg

ula

tion 7

, P

art

4 o

f an

d S

ched

ule

2

to

the

Reg

iste

r of

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol R

egu

lati

ons

2016

Reg

ula

tions

31C

– 3

1E

and 3

1M

of

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Appli

cati

on

of

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Par

agra

phs

3 a

nd

4 o

f S

ched

ule

2 t

o

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

20

16

Sch

edule

1,

par

agra

phs

12A

(1),

(3),

and (

5)

and

12

B(1

), a

nd (

2)

to t

he

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Par

t 4

of

the

Sco

ttis

h P

artn

ersh

ips

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

Reg

ula

tions

201

7

M

ember

S

tate

s sh

all

ensu

re

that

th

ose

en

titi

es

are

requir

ed

to

pro

vid

e,

in

addit

ion

to

info

rmat

ion a

bout

thei

r le

gal

ow

ner

, in

form

atio

n o

n t

he

ben

efic

ial

ow

ner

to o

bli

ged

enti

ties

when

the

obli

ged

enti

ties

are

tak

ing c

ust

om

er d

ue

dil

igen

ce m

easu

res

in a

cco

rdan

ce w

ith

Chap

ter

II.

Reg

ula

tion 4

3(1

), (

2),

(4

)

30.2

M

ember

Sta

tes

shal

l re

quir

e th

at t

he

info

rmat

ion r

efer

red t

o i

n p

arag

raph 1

can

be

acce

ssed

in a

tim

ely m

anner

by c

om

pet

ent

auth

ori

ties

and F

IUs.

790N

– 7

90S

of

the

Com

pan

ies

Act

2006

Reg

ula

tions

31F

an

d

31G

of

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Appli

cati

on

of

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Sch

edule

1,

Par

agra

ph 1

2B

(1)

to t

he

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Reg

ula

tions

42 a

nd 4

5(2

)(b)

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol)

Reg

ula

tions

2017

30.3

M

ember

Sta

tes

shal

l en

sure

that

th

e in

form

atio

n r

efer

red t

o i

n p

arag

raph

1 i

s hel

d i

n a

cen

tral

regis

ter

in e

ach M

emb

er S

tate

, fo

r ex

ample

a c

om

mer

cial

reg

iste

r, c

om

pan

ies

regis

ter

as

refe

rred

to i

n A

rtic

le 3

of

Dir

ecti

ve

2009/1

01/E

C o

f th

e E

uro

pea

n P

arli

amen

t an

d o

f th

e

Counci

l (3

1),

or

a publi

c re

gis

ter.

M

ember

S

tate

s sh

all

noti

fy

to

the

Com

mis

sion

the

char

acte

rist

ics

of

those

nat

ional

m

echan

ism

s.

The

info

rmat

ion

on

ben

efic

ial

ow

ner

ship

conta

ined

in t

hat

dat

abas

e m

ay b

e co

llec

ted i

n a

ccord

ance

wit

h n

atio

nal

syst

ems.

Sec

tions

790V

A

and

1080

of

the

Com

pan

ies

Act

2006

Reg

ula

tions

31JA

an

d

60

of

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Appli

cati

on

of

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Sch

edule

1,

par

agra

phs

12B

(1)

and

(4),

17(2

)(d

) an

d

20(1

)(a)

to

th

e

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Par

t 5

of

the

Sco

ttis

h P

artn

ersh

ips

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

Reg

ula

tions

201

7

30.4

M

ember

Sta

tes

shal

l re

quir

e th

at t

he

info

rmat

ion

hel

d i

n t

he

centr

al r

egis

ter

refe

rred

to i

n

par

agra

ph 3

is

adeq

uat

e, a

ccura

te a

nd c

urr

ent.

Sec

tion

790V

A

of

the

Com

pan

ies

Act

2006

Reg

ula

tion

31JA

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

the

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Sch

edule

1, p

arag

raph

12

B(1

) an

d (

4)

to

the

Unre

gis

tere

d

Com

pan

ies

Reg

ula

tions

2009

Par

ts

4

–

6

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017,

spec

ific

ally

reg

ula

tions

11,

14,

20 a

nd 3

5.

30.5

M

ember

Sta

tes

shal

l en

sure

that

the

info

rmat

ion o

n t

he

ben

efic

ial

ow

ner

ship

is

acce

ssib

le i

n

all

case

s to

:

Sec

tion

1085

and

10

86

of

the

Com

pan

ies

Act

2006

(via

publi

c

onli

ne

regis

ter)

(w

ith

cert

ain

modif

icat

ions

for

SE

s in

reg

ula

tion

13 a

nd S

ched

ule

1A

Euro

pea

n P

ubli

c

Lim

ited

-Lia

bil

ity

Com

pan

y

Reg

ula

tions

2004)

Reg

ula

tion

66

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Sch

edule

1, p

arag

raph 2

0(1

)(b)

to the

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Reg

ula

tion

61

of

The

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017

(a

) co

mpet

ent

auth

ori

ties

an

d F

IUs,

wit

hout

any r

estr

icti

on;

Sec

tions

790Z

F, 790

ZG

, 1085, 1086,

1087B

of

the

Com

pan

ies

Act

2006

(wit

h c

erta

in m

odif

icat

ions

for

SE

s in

regula

tion

3

Euro

pea

n

Publi

c

Lim

ited

-Lia

bil

ity

Com

pan

y

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

2016

and

regula

tion

13

and

Sch

edule

1A

Euro

pea

n

Publi

c L

imit

ed-L

iabil

ity

Com

pan

y R

egula

tions

20

04)

Reg

ula

tion 2

, S

ched

ule

1,

and P

art

1

of

Sch

edule

2

to

th

e C

om

pan

ies

(Dis

closu

re

of

Dat

e of

Bir

th

Info

rmat

ion)

Reg

ula

tions

2015

Reg

ula

tions

22,

34,

Sch

edule

3,

and

Par

t 1 o

f S

ched

ule

4 t

o t

he

Reg

iste

r

of

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol

Reg

ula

tions

2016

Reg

ula

tions

31

L

and

66

of

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Appli

cati

on

of

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Par

agra

phs

3 a

nd

4 o

f S

ched

ule

2 t

o

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

20

16

Sch

edule

1,

par

agra

phs

12C

, an

d

20(1

)(a)

,(b),

(ca

), (

cb),

an

d (

2A

) to

the

Unre

gis

tere

d

Com

pan

ies

Reg

ula

tions

2009

Reg

ula

tions

42 a

nd 4

5(2

)(b)

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol)

Reg

ula

tions

2017

(b

)obli

ged

enti

ties

, w

ithin

the

fram

ework

of

cust

om

er d

ue

dil

igen

ce i

n a

ccord

ance

wit

h

Chap

ter

II;

Sec

tion

1085

and

10

86

of

the

Com

pan

ies

Act

2006

(wit

h

cert

ain

modif

icat

ions

for

SE

s in

reg

ula

tion

13 a

nd S

ched

ule

1A

to t

he

Euro

pea

n

Publi

c L

imit

ed-L

iabil

ity

Com

pan

y

Reg

ula

tions

2004)

Reg

ula

tion

66

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Sch

edule

1, p

arag

raph 2

0(1

)(b)

to the

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Reg

ula

tion

61

of

The

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017

(c

) an

y p

erso

n o

r o

rgan

isat

ion t

hat

can

dem

onst

rate

a l

egit

imat

e in

tere

st.

The

per

sons

or

org

anis

atio

ns

refe

rred

to i

n p

oin

t (c

) sh

all

acce

ss a

t le

ast

the

nam

e, t

he

month

and y

ear

of

bir

th, th

e nat

ional

ity a

nd t

he

countr

y o

f re

siden

ce o

f th

e b

enef

icia

l ow

ner

as

wel

l

as t

he

nat

ure

and e

xte

nt

of

the

ben

efic

ial

inte

rest

hel

d.

Sec

tion

1085

and

10

86

of

the

Com

pan

ies

Act

2006

(via

publi

c

onli

ne

regis

ter)

(w

ith

cert

ain

modif

icat

ions

for

SE

s in

reg

ula

tion

13 a

nd S

ched

ule

1A

to t

he

Euro

pea

n

Publi

c L

imit

ed-L

iabil

ity

Com

pan

y

Reg

ula

tions

2004)

Reg

ula

tion

66

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Sch

edule

1, p

arag

raph 2

0(1

)(b)

to the

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Reg

ula

tion

61

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017

F

or

the

pu

rpose

s of

this

par

agra

ph, ac

cess

to th

e in

form

atio

n o

n b

enef

icia

l o

wner

ship

shal

l be

in a

ccord

ance

wit

h d

ata

pro

tect

ion r

ule

s an

d m

ay b

e su

bje

ct t

o o

nli

ne

regis

trat

ion a

nd t

o t

he

pay

men

t of

a fe

e. T

he

fees

ch

arged

fo

r obta

inin

g th

e in

form

atio

n sh

all

not

exce

ed th

e

adm

inis

trat

ive

cost

s th

ereo

f.

Sec

tion 7

90

ZF

and 7

90

ZG

(1),

(3)(

g)

of

the

Com

pan

ies

Act

2006

(wit

h

cert

ain

m

odif

icat

ions

for

SE

s in

regula

tion 3

of

the

Euro

pea

n P

ubli

c

Lim

ited

-Lia

bil

ity

Com

pan

y

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

Reg

ula

tions

201

6)

Reg

ula

tions

22 a

nd 3

5,

and P

art

1 o

f

Sch

edule

4 t

o t

he

Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t C

ontr

ol

Reg

ula

tions

2016

Reg

ula

tion

31

L

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Par

agra

phs

3 a

nd

4 o

f S

ched

ule

2 t

o

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

20

16

Reg

ula

tion

6(b

)(iv

) an

d

(c),

an

d

Sch

edule

3 p

arag

raphs

(4)

and (

5)

to

the

Reg

istr

ar

of

Com

pan

ies

(Fee

s)

(Com

pan

ies,

O

ver

seas

C

om

pan

ies

and

Lim

ited

L

iabil

ity

Par

tner

ship

s)

Reg

ula

tions

2012

Sch

edule

1,

par

agra

ph

20(2

)(ca

) an

d

(cb)

to t

he

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Par

ts

7

and

8

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017

30.6

T

he

centr

al r

egis

ter

refe

rred

to i

n p

arag

raph 3

shal

l en

sure

tim

ely a

nd u

nre

stri

cted

acc

ess

by

com

pet

ent

auth

ori

ties

and F

IUs,

wit

hout

aler

ting t

he

enti

ty c

once

rned

. It

shal

l al

so a

llow

tim

ely a

cces

s b

y o

bli

ged

enti

ties

when

tak

ing c

ust

om

er d

ue

dil

igen

ce m

easu

res.

Sec

tions

1085 a

nd

1086

(via

publi

c

onli

ne

regis

ter)

of

the

Com

pan

ies

Act

2006 (

wit

h c

erta

in m

odif

icat

ions

for

SE

s in

reg

ula

tion 1

3 a

nd S

ched

ule

1A

to

the

Euro

pea

n

Publi

c L

imit

ed-

Lia

bil

ity

Com

pan

y

Reg

ula

tions

2004)

And

for

FIU

an

d

com

pet

ent

auth

ori

ties

: P

art

1 o

f S

ched

ule

4 t

o

the

Reg

iste

r of

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol R

egu

lati

ons

2016

Reg

ula

tion

66

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Par

agra

ph

4

of

Sch

edu

le

2

to

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

20

16

Sch

edule

1,

par

agra

phs

12C

, an

d

20(1

),(b

), (

ca),

(cb

) an

d (

2A

) to

the

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Par

ts

7

and

8

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017

30.7

M

ember

Sta

tes

shal

l en

sure

that

com

pet

ent

auth

ori

ties

and F

IUs

are

able

to p

rovid

e th

e

info

rmat

ion r

efer

red t

o i

n p

arag

raphs

1 a

nd 3

to

th

e co

mpet

ent

auth

ori

ties

and t

o t

he

FIU

s of

oth

er M

ember

Sta

tes

in a

tim

ely m

anner

.

Reg

ula

tion 4

3(5

), 5

2

30.8

M

ember

Sta

tes

shal

l re

qu

ire

that

obli

ged

enti

ties

do n

ot re

ly e

xcl

usi

vel

y o

n the

centr

al r

egis

ter

refe

rred

to i

n p

arag

raph 3

to f

ulf

il t

hei

r cu

stom

er d

ue

dil

igen

ce r

equir

emen

ts i

n a

ccord

ance

wit

h C

hap

ter

II. T

hose

req

uir

emen

ts s

hal

l be

fulf

ille

d b

y u

sin

g a

ris

k-b

ased

appro

ach.

Reg

ula

tion 2

8(9

)

30.9

M

ember

Sta

tes

may p

rov

ide

for

an e

xem

pti

on t

o t

he

acce

ss r

efer

red t

o i

n p

oin

ts (

b)

and (

c)

of

par

agra

ph 5

to a

ll o

r p

art

of

the

info

rmat

ion o

n t

he

ben

efic

ial

ow

ner

ship

on a

cas

e-b

y-c

ase

bas

is i

n e

xce

pti

onal

cir

cum

stan

ces,

wh

ere

such

acc

ess

would

ex

pose

the

ben

efic

ial

ow

ner

to

the

risk

of

frau

d,

kid

nap

pin

g,

bla

ckm

ail,

vio

lence

or

inti

mid

atio

n,

or

wh

ere

the

ben

efic

ial

ow

ner

is

a m

inor

or

oth

erw

ise

inca

pab

le. E

xem

pti

ons

gra

nte

d p

urs

uan

t to

this

par

agra

ph s

hal

l

not

apply

to t

he

cred

it i

nst

ituti

ons

and f

inan

cial

inst

ituti

ons,

and t

o o

bli

ged

enti

ties

ref

erre

d

to i

n p

oin

t (3

)(b)

of

Art

icle

2(1

) th

at a

re p

ubli

c off

icia

ls.

Sec

tions

790Z

F an

d 79

0Z

G of

the

Com

pan

ies

Act

2006

(wit

h

cert

ain

modif

icat

ions

for

SE

s in

reg

ula

tion 3

of

the

Euro

pea

n

Publi

c L

imit

ed-

Lia

bil

ity

Com

pan

y

(Reg

iste

r o

f

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol)

Reg

ula

tions

2016)

Reg

ula

tions

22 –

44, S

ched

ule

s 3 a

nd

4

to

the

Reg

iste

r of

Peo

ple

w

ith

Sig

nif

ican

t C

ontr

ol R

egu

lati

ons

2016

Reg

ula

tion

31

L

of

the

Lim

ited

Lia

bil

ity P

artn

ersh

ips

(Appli

cati

on o

f

Com

pan

ies

Act

2006)

Reg

ula

tions

2009

Par

agra

phs

3 a

nd

4 o

f S

ched

ule

2 t

o

the

Lim

ited

L

iabil

ity

Par

tner

ship

s

(Reg

iste

r of

Peo

ple

wit

h S

ignif

ican

t

Contr

ol)

R

egula

tions

20

16

Sch

edule

1,

par

agra

ph

12C

to

th

e

Unre

gis

tere

d C

om

pan

ies

Reg

ula

tions

2009

Par

ts

7

and

8

of

the

Sco

ttis

h

Par

tner

ship

s (R

egis

ter

of

Peo

ple

wit

h

Sig

nif

ican

t C

ontr

ol)

R

egula

tions

2017

30.1

0

By 2

6 J

une

2019,

the

Com

mis

sion s

hal

l su

bm

it a

rep

ort

to t

he

Euro

pea

n P

arli

amen

t an

d t

o

the

Counci

l as

sess

ing t

he

condit

ions

and t

he

tech

nic

al s

pec

ific

atio

ns

and p

roce

du

res

for

ensu

ring th

e sa

fe a

nd e

ffic

ient in

terc

onnec

tion o

f th

e ce

ntr

al r

egis

ters

ref

erre

d to in p

arag

raph

No t

ransp

osi

tion r

equir

ed

3 v

ia t

he

Euro

pea

n c

entr

al p

latf

orm

est

abli

shed

by A

rtic

le 4

a(1

) of

Dir

ecti

ve

2009/1

01/E

C.

Wher

e ap

pro

pri

ate,

that

rep

ort

shal

l be

acco

mpan

ied b

y a

leg

isla

tive

pro

posa

l.

A

rtic

le 3

1

31.1

M

ember

Sta

tes

shal

l re

qu

ire

that

tru

stee

s of

any e

xpre

ss tru

st g

over

ned

under

thei

r la

w o

bta

in

and h

old

ad

equat

e, a

ccura

te a

nd

up-t

o-d

ate

info

rmat

ion o

n b

enef

icia

l ow

ner

ship

reg

ardin

g

the

trust

. T

hat

info

rmat

ion s

hal

l in

clude

the

iden

tity

of:

Reg

ula

tion 4

4(1

) an

d 4

5(2

)(b)

to (

d)

(a

) th

e se

ttlo

r;

Reg

ula

tion 4

4(1

) (a

nd s

ee d

efin

itio

n

of

ben

efic

ial

ow

ner

fo

r tr

ust

in

regula

tion 6

(1)(

a))

(b

) th

e tr

ust

ee(s

);

Reg

ula

tion 4

4(1

) (a

nd s

ee d

efin

itio

n

of

ben

efic

ial

ow

ner

fo

r tr

ust

in

regula

tion 6

(1)(

b))

(c

) th

e pro

tect

or

(if

any);

Reg

ula

tion 4

4(1

) (a

nd s

ee d

efin

itio

n

of

ben

efic

ial

ow

ner

fo

r tr

ust

in

regula

tion 6

(1)(

d)

and (

2))

(d

) th

e ben

efic

iari

es o

r cl

ass

of

ben

efic

iari

es;

and

Reg

ula

tion 4

4(1

) (a

nd s

ee d

efin

itio

n

of

ben

efic

ial

ow

ner

fo

r tr

ust

in

regula

tion 6

(1)(

c))

(e

) an

y o

ther

nat

ura

l per

son e

xer

cisi

ng e

ffec

tive

contr

ol

over

the

trust

R

egula

tion 4

4(1

) (a

nd s

ee d

efin

itio

n

of

ben

efic

ial

ow

ner

fo

r tr

ust

in

regula

tion 6

(1)(

d)

and (

2))

31.2

M

ember

Sta

tes

shal

l en

sure

that

tru

stee

s dis

close

thei

r st

atus

and p

rovid

e th

e in

form

atio

n

refe

rred

to in p

arag

raph 1

to o

bli

ged

enti

ties

in a

tim

ely m

anner

wher

e, a

s a

trust

ee, th

e tr

ust

ee

form

s a

busi

nes

s re

lati

onsh

ip o

r ca

rrie

s out

an o

ccas

ional

tra

nsa

ctio

n a

bove

the

thre

shold

s se

t

out

in p

oin

ts (

b),

(c)

and (

d)

of

Art

icle

11.

Reg

ula

tion 4

4(2

), (

3)

31.3

M

ember

Sta

tes

shal

l re

quir

e th

at t

he

info

rmat

ion r

efer

red t

o i

n p

arag

raph 1

can

be

acce

ssed

in a

tim

ely m

anner

by c

om

pet

ent

auth

ori

ties

and F

IUs.

Reg

ula

tion 4

4(5

),(1

0)

31.4

M

ember

Sta

tes

shal

l re

qu

ire

that

the

info

rmat

ion r

efer

red to in p

arag

raph 1

is

hel

d in a

cen

tral

regis

ter

when

th

e tr

ust

gen

erat

es t

ax c

onse

qu

ence

s. T

he

centr

al r

egis

ter

shal

l en

sure

tim

ely

and u

nre

stri

cted

acc

ess

by c

om

pet

ent

auth

ori

ties

and F

IUs,

wit

hout

aler

ting t

he

par

ties

to t

he

trust

conce

rned

. It

may a

lso a

llow

tim

ely a

cces

s b

y o

bli

ged

enti

ties

, w

ithin

the

fram

ework

of

cust

om

er d

ue

dil

igen

ce i

n a

ccord

ance

wit

h C

hap

ter

II.

Mem

ber

Sta

tes

shal

l noti

fy t

o t

he

Com

mis

sion t

he

char

acte

rist

ics

of

those

nat

ional

mec

han

ism

s.

Reg

ula

tion 4

5 (

1)

and (

12)

31.5

M

ember

Sta

tes

shal

l re

quir

e th

at t

he

info

rmat

ion

hel

d i

n t

he

centr

al r

egis

ter

refe

rred

to i

n

par

agra

ph 4

is

adeq

uat

e, a

ccura

te a

nd u

p-t

o-d

ate.

Reg

ula

tion 4

5(2

) to

(10)

31.6

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

do n

ot re

ly e

xcl

usi

vel

y o

n the

centr

al r

egis

ter

refe

rred

to i

n p

arag

raph 4

to f

ulf

il t

hei

r cu

stom

er d

ue

dil

igen

ce r

equir

emen

ts a

s la

id d

ow

n i

n

Chap

ter

II. T

hose

req

uir

emen

ts s

hal

l be

fulf

ille

d b

y u

sin

g a

ris

k-b

ased

appro

ach.

Acc

ess

to t

he

regis

ter

is l

imit

ed b

y

regula

tion 4

5(1

2)

and (

13)

31.7

M

ember

Sta

tes

shal

l en

sure

that

com

pet

ent

auth

ori

ties

and F

IUs

are

able

to p

rovid

e th

e

info

rmat

ion r

efer

red t

o i

n p

arag

raphs

1 a

nd 4

to

th

e co

mpet

ent

auth

ori

ties

and t

o t

he

FIU

s of

oth

er M

ember

Sta

tes

in a

tim

ely m

anner

.

Reg

ula

tion 4

5(1

3)

31.8

M

ember

Sta

tes

shal

l en

sure

that

the

mea

sure

s pro

vid

ed f

or

in t

his

Art

icle

apply

to o

ther

types

of

legal

arr

angem

ents

hav

ing a

str

uct

ure

or

funct

ions

sim

ilar

to t

rust

s.

No t

ransp

osi

tion r

equir

ed

31.9

B

y 2

6 J

une

2019,

the

Com

mis

sion s

hal

l su

bm

it a

rep

ort

to t

he

Euro

pea

n P

arli

amen

t an

d t

o

the

Counci

l as

sess

ing t

he

condit

ions

and t

he

tech

nic

al s

pec

ific

atio

ns

and p

roce

du

res

for

ensu

ring s

afe

and e

ffic

ient

inte

rconnec

tion o

f th

e ce

ntr

al r

egis

ters

. W

her

e ap

pro

pri

ate,

that

report

shal

l be

acco

mpan

ied b

y a

leg

isla

tive

pro

po

sal.

No t

ransp

osi

tion r

equir

ed

C

HA

PT

ER

IV

R

EP

OR

TIN

G O

BL

IGA

TIO

NS

S

EC

TIO

N 1

G

ener

al

pro

visi

on

s

A

rtic

le 3

2

32.1

E

ach M

ember

Sta

te s

hal

l es

tabli

sh a

n F

IU i

n o

rder

to p

reven

t, d

etec

t an

d e

ffec

tivel

y c

om

bat

money

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng.

The

Unit

ed

Kin

gdo

m

finan

cial

Inte

llig

ence

Unit

(U

KF

IU)

oper

ates

as p

art

of

the

Nat

ional

Cri

me

Agen

cy

(NC

A).

The

Nat

ional

Cri

me

Agen

cy

was

est

abli

shed

under

the

Cri

me

and

Court

s A

ct 2

013,

and h

as t

he

over

all

resp

onsi

bil

ity f

or

gov

ern

ance

of

the

regim

e w

hil

st t

he

UK

FIU

Oper

atio

ns

has

th

e nat

ional

re

sponsi

bil

ity

to

rece

ive,

an

alyse

an

d

dis

sem

inat

e

finan

cial

in

tell

igen

ce

subm

itte

d

thro

ugh

the

Susp

icio

us

Act

ivit

y

Rep

ort

s re

gim

e (p

rovid

ed f

or

under

Par

t 7 o

f th

e P

roce

eds

of

Cri

me

Act

2002).

32.2

M

ember

Sta

tes

shal

l noti

fy t

he

Com

mis

sion i

n w

riti

ng o

f th

e nam

e an

d a

ddre

ss o

f th

eir

resp

ecti

ve

FIU

s.

UK

has

noti

fied

E

uro

pol

and

the

Com

mis

sion

32.3

E

ach F

IU s

hal

l be

op

erat

ional

ly indep

enden

t an

d a

uto

nom

ous,

whic

h m

eans

that

the

FIU

sh

all

hav

e th

e au

thori

ty a

nd c

apac

ity t

o c

arry

out

its

funct

ions

free

ly,

incl

udin

g t

he

abil

ity t

o t

ake

auto

nom

ous

dec

isio

ns

to a

nal

yse

, re

qu

est

and

dis

sem

inat

e sp

ecif

ic i

nfo

rmat

ion.

The

FIU

as

the

centr

al

nat

ional

unit

sh

all

be

resp

onsi

ble

fo

r re

ceiv

ing

and

anal

ysi

ng

susp

icio

us

tran

sact

ion r

eport

s an

d o

ther

info

rmat

ion r

elev

ant

to m

oney

lau

nd

erin

g,

asso

ciat

ed p

redic

ate

off

ence

s or

terr

ori

st f

inan

cing.

Th

e F

IU s

hal

l be

resp

onsi

ble

for

dis

sem

inat

ing t

he

resu

lts

of

its

anal

yse

s an

d a

ny a

ddit

ional

rel

evan

t in

form

atio

n t

o t

he

com

pet

ent

auth

ori

ties

wher

e th

ere

are

gro

unds

to s

usp

ect m

oney

lau

nder

ing, as

soci

ated

pre

dic

ate

off

ence

s o

r te

rrori

st f

inan

cing.

It s

hal

l be

able

to o

bta

in a

ddit

ional

info

rmat

ion f

rom

obli

ged

enti

ties

.

The

Nat

ional

C

rim

e A

gen

cy

is

an

oper

atio

nal

ly i

ndep

enden

t bod

y.

Th

e

FIU

fu

nct

ions

as

an

oper

atio

nal

ly

indep

enden

t an

d

auto

nom

ous

unit

wit

hin

th

e N

CA

. T

he

FIU

is

th

e

single

poin

t of

conta

ct f

or

the

init

ial

rece

ipt

and a

nal

ysi

s of

all

susp

icio

us

acti

vit

y

repo

rts

(SA

Rs)

an

d

oth

er

info

rmat

ion

rela

tin

g

to

money

launder

ing

and

crim

inal

/ter

rori

st

finan

cin

g.

Dec

isio

ns

rela

ting

to

inte

llig

ence

re

ceip

t,

anal

ysi

s an

d

dis

trib

uti

on

are

conta

ined

auto

nom

ousl

y w

ithin

the

FIU

.

Par

t 7 o

f P

OC

A (

s.339Z

A))

and P

art

3 (

s.21C

) o

f th

e T

AC

T 2

000 r

equir

e

dis

closu

re o

f in

form

atio

n t

o t

he

NC

A

as s

oon a

s re

asonab

ly p

ract

icab

le.

New

s.3

39Z

H o

f P

OC

A a

nd s

.22B

of

TA

CT

2000 (

inse

rted

by the

Cri

min

al

Fin

ance

s A

ct 2

017 9

”CF

A”)

) per

mit

s

the

obta

inin

g

of

info

rmat

ion

from

obli

ged

en

titi

es

in

rela

tion

to

a

dis

closu

re.

Par

t 8 o

f P

OC

A a

nd S

ched

ule

s 5, 5A

,

6 a

nd 6

A o

f T

AC

T i

ncl

ude

a ra

nge

of

inves

tigat

ory

pow

ers

per

mit

ting t

he

NC

A

to

obta

in

info

rmat

ion

from

obli

ged

enti

ties

in r

elat

ion t

o m

oney

launder

ing

and

terr

ori

st

finan

cin

g

inves

tigat

ions.

M

ember

S

tate

s sh

all

pro

vid

e th

eir

FIU

s w

ith

adeq

uat

e fi

nan

cial

, hum

an

and

tech

nic

al

reso

urc

es i

n o

rder

to f

ulf

il t

hei

r ta

sks.

Res

ourc

es ar

e pro

vid

ed to

th

e F

IU

thro

ugh th

e N

CA

, w

hic

h is

fu

nded

dir

ectl

y

thro

ugh

its

ow

n

supply

esti

mat

e, v

ote

d b

y P

arli

amen

t.

32.4

M

ember

Sta

tes

shal

l en

sure

that

thei

r F

IUs

hav

e ac

cess

, dir

ectl

y o

r in

dir

ectl

y,

in a

tim

ely

man

ner

, to

the

finan

cial

, ad

min

istr

ativ

e an

d l

aw e

nfo

rcem

ent

info

rmat

ion t

hat

they

req

uir

e to

fulf

il t

hei

r ta

sks

pro

per

ly.

FIU

s sh

all

be

able

to

res

pond t

o r

eques

ts f

or

info

rmat

ion b

y

com

pet

ent

auth

ori

ties

in t

hei

r re

spec

tive

Mem

ber

Sta

tes

when

su

ch r

eques

ts f

or

info

rmat

ion

The

FIU

hav

e ac

cess

to i

nfo

rmat

ion

obta

ined

b

y

the

NC

A

usi

ng

the

info

rmat

ion

gat

her

ing

pow

ers

pro

vid

ed f

or

in P

art

8 o

f P

OC

A a

nd

are

moti

vat

ed b

y c

once

rns

rela

ting t

o m

oney l

aunder

ing,

asso

ciat

ed p

redic

ate

off

ence

s or

terr

ori

st f

inan

cing.

The

dec

isio

n o

n c

onduct

ing t

he

anal

ysi

s or

dis

sem

inat

ion o

f in

form

atio

n

shal

l re

mai

n w

ith t

he

FIU

.

Sch

edule

s 5

to

6A

of

TA

CT

, or

pro

vid

ed to the

NC

A f

rom

the

pri

vat

e

sect

or

and

oth

er

law

en

forc

emen

t

agen

cies

under

th

e in

form

atio

n

gat

eway i

n s

ecti

on 7

of

CC

A.

See

als

o s

.339

ZH

PO

CA

, s.

22B

TA

CT

and s

.8(3

) C

CA

32.5

W

her

e th

ere

are

obje

ctiv

e gro

unds

for

assu

min

g th

at the

pro

vis

ion o

f su

ch info

rmat

ion w

ould

hav

e a

neg

ativ

e im

pac

t on

ongoin

g

inves

tigat

ions

or

anal

yse

s,

or,

in

ex

cepti

onal

circ

um

stan

ces,

wher

e dis

closu

re o

f th

e in

form

atio

n w

ould

be

clea

rly d

ispro

port

ionat

e to

the

legit

imat

e in

tere

sts

of

a nat

ura

l or

legal

per

son o

r ir

rele

van

t w

ith r

egar

d t

o t

he

purp

ose

s fo

r

whic

h i

t has

bee

n r

eques

ted, th

e F

IU s

hal

l be

und

er n

o o

bli

gat

ion t

o c

om

ply

wit

h t

he

reques

t

for

info

rmat

ion.

This

is

an o

per

atio

nal

mat

ter

for

the

UK

FIU

. The

UK

FIU

is

not obli

ged

to

pro

vid

e in

form

atio

n

under

th

ese

circ

um

stan

ces.

The

UK

FIU

is

subje

ct

to b

oth

the

Dat

a P

rote

ctio

n A

ct 1

998

and t

he

Hum

an R

ights

Act

1998 a

nd

may

only

sh

are

dat

a in

a

man

ner

whic

h i

s co

mpli

ant

wit

h b

oth

.

32.6

M

ember

Sta

tes

shal

l re

quir

e co

mpet

ent

auth

ori

ties

to p

rovid

e fe

edbac

k t

o t

he

FIU

about

the

use

mad

e of

the

info

rmat

ion p

rovid

ed i

n a

ccord

ance

wit

h t

his

Art

icle

and a

bout

the

outc

om

e

of

the

inves

tigat

ions

or

insp

ecti

ons

per

form

ed o

n t

he

bas

is o

f th

at i

nfo

rmat

ion.

To

be

imple

men

ted

b

y

the

Hom

e

Off

ice

32.7

M

ember

Sta

tes

shal

l en

sure

that

the

FIU

is

emp

ow

ered

to t

ake

urg

ent

acti

on,

dir

ectl

y o

r

indir

ectl

y,

wher

e th

ere

is a

susp

icio

n t

hat

a t

ransa

ctio

n i

s re

late

d t

o m

oney

lau

nd

erin

g o

r

terr

ori

st f

inan

cin

g, to

susp

end o

r w

ithhold

conse

nt to

a tra

nsa

ctio

n that

is

pro

ceed

ing, in

ord

er

to a

nal

yse

the

tran

sact

ion, co

nfi

rm t

he

susp

icio

n a

nd d

isse

min

ate

the

resu

lts

of

the

anal

ysi

s to

the

com

pet

ent

auth

ori

ties

. T

he

FIU

sh

all

be

empow

ered

to t

ake

such

act

ion,

dir

ectl

y o

r

indir

ectl

y,

at t

he

requ

est

of

an F

IU f

rom

anoth

er M

ember

Sta

te f

or

the

per

iods

and u

nder

the

condit

ions

spec

ifie

d i

n t

he

nat

ional

law

of

the

FIU

rec

eivin

g t

he

reques

t.

Sec

tions

330-3

31 o

f P

OC

A m

ake

it

an o

ffen

ce f

or

regula

ted s

ecto

r bodie

s

to f

ail

to r

eport

susp

icio

n o

f m

oney

launder

ing

(or

wh

ere

ther

e ar

e

reas

onab

le g

rounds

for

susp

icio

n).

The

FIU

m

ay

use

th

e se

ctio

n

7

gat

eway i

n t

he

Cri

me

and C

ourt

s A

ct

to

pro

vid

e in

form

atio

n

to

oth

er

enti

ties

in

cludin

g

conce

rnin

g

susp

icio

n

of

money

la

under

ing

in

whic

h c

ase

regula

ted

sec

tor

enti

ties

would

com

mit

a c

rim

inal

off

ence

if

they

did

not

mak

e a

dis

closu

re t

o t

he

FIU

.

Sec

tions

327-3

29 o

f P

OC

A c

reat

e th

e

pri

nci

pal

money lau

nd

erin

g o

ffen

ces.

They

in

clude

acti

vit

ies

such

as

th

e

pro

cess

ing of

pro

per

ty w

her

e th

ere

are

gro

unds

to s

usp

ect

such

pro

per

ty

is c

rim

inal

. T

her

e is

a d

efen

ce to e

ach

wher

e th

e su

spec

t ca

n dem

onst

rate

that

they m

ade

a dis

closu

re to the

FIU

and w

her

e th

e F

IU d

id n

ot

wit

hold

conse

nt

to t

he

acti

vit

y p

roce

edin

g.

Sec

tions

335-3

36 o

f P

OC

A p

rovid

es

that

the

FIU

may w

ithold

conse

nt

in

rela

tion t

o a

ny a

ctiv

ity i

n r

elat

ion t

o

pro

per

ty

that

is

th

e su

bje

ct

of

a

dis

closu

re o

f a

susp

icio

n o

f m

oney

launder

ing o

r te

rrori

sm f

inan

cin

g.

The

per

iod d

uri

ng w

hic

h t

he

conse

nt

is d

eem

ed t

o b

e w

ithel

d i

s 31 d

ays;

under

s.3

6A

of

PO

CA

a C

ourt

may

exte

nd

this

per

iod

to

186

day

s

max

imum

in t

ota

l.

In c

ases

of

a re

ques

t re

ceiv

ed f

rom

anoth

er m

emb

er s

tate

, th

e F

IU w

ould

be

able

to

ta

ke

the

step

s outl

ined

above.

For

Ter

rori

sm

Fin

anci

ng,

sim

ilar

pro

vis

ions

are

found

in

Par

t 3

of

TA

CT

.

32.8

T

he

FIU

's a

nal

ysi

s fu

nct

ion s

hal

l co

nsi

st o

f th

e fo

llow

ing:

(a

)an oper

atio

nal

an

alysi

s w

hic

h fo

cuse

s on

in

div

idual

ca

ses

and

sp

ecif

ic ta

rget

s o

r on

appro

pri

ate

sele

cted

info

rmat

ion,

dep

endin

g o

n t

he

typ

e an

d v

olu

me

of

the

dis

closu

res

rece

ived

and t

he

expec

ted u

se o

f th

e in

form

atio

n a

fter

dis

sem

inat

ion;

and

The

UK

FIU

ca

rrie

s out

anal

ysi

s as

par

t of

the

funct

ions

of

the

NC

A a

s

set

out

in s

.1 o

f C

rim

e an

d C

ourt

s

Act

2013

(b

)a

stra

tegic

an

alysi

s ad

dre

ssin

g

money

launder

ing

and

terr

ori

st

finan

cing

tren

ds

and

pat

tern

s.

Wid

er

stra

tegic

an

alysi

s of

UK

money

lau

nder

ing i

s a

funct

ion o

f th

e

NC

A

nat

ional

In

tell

igen

ce

Hub.

Str

ateg

ic

anal

ysi

s o

f te

rro

rist

finan

cin

g

is

under

tak

en

by

the

Nat

ional

T

erro

rist

F

inan

cial

Inv

esti

gat

ion

Unit

(N

TF

IU).

T

he

UK

FIU

und

erta

kes

an

alysi

s of

pat

tern

s an

d tre

nds

in S

AR

s re

port

ing

rela

ting t

o s

ecto

rs a

nd t

ypolo

gie

s .

A

rtic

le 3

3

33.1

M

ember

S

tate

s sh

all

requir

e obli

ged

en

titi

es,

and,

wher

e ap

pli

cable

, th

eir

dir

ecto

rs an

d

emplo

yee

s, t

o c

ooper

ate

full

y b

y p

rom

ptl

y:

(a

)info

rmin

g t

he

FIU

, in

clu

din

g b

y f

ilin

g a

rep

ort

, o

n t

hei

r ow

n i

nit

iati

ve,

wher

e th

e obli

ged

enti

ty k

now

s, s

usp

ects

or

has

rea

son

able

gro

unds

to s

usp

ect

that

funds,

reg

ardle

ss o

f th

e

amount

involv

ed, ar

e th

e pro

ceed

s o

f cr

imin

al a

ctiv

ity o

r ar

e re

late

d t

o t

erro

rist

fin

anci

ng,

and b

y p

rom

ptl

y r

espon

din

g t

o r

eques

ts b

y t

he

FIU

for

addit

ional

info

rmat

ion i

n s

uch

case

s; a

nd

Sec

tions

330,

331

and

339Z

H

of

PO

CA

Sec

tions

19 a

nd 2

2B

of

TA

CT

(b

)pro

vid

ing t

he

FIU

, dir

ectl

y o

r in

dir

ectl

y,

at i

ts r

eques

t, w

ith a

ll n

eces

sary

info

rmat

ion,

in

acco

rdan

ce w

ith t

he

pro

cedure

s es

tabli

shed

by t

he

appli

cable

law

.

All

susp

icio

us

tran

sact

ions,

incl

udin

g a

ttem

pte

d t

ransa

ctio

ns,

shal

l be

report

ed.

Sec

tions

339Z

H a

nd 3

57 o

f P

OC

A

Sec

tions

22B

and 3

7A

of

TA

CT

33.2

T

he

per

son

appoin

ted

in

acco

rdan

ce

wit

h

poin

t (a

) of

Art

icle

8(4

) sh

all

tran

smit

th

e

info

rmat

ion r

efer

red to in

par

agra

ph

1 o

f th

is A

rtic

le to the

FIU

of

the

Mem

ber

Sta

te in

whose

terr

itory

the

obli

ged

enti

ty t

ransm

itti

ng t

he

info

rmat

ion i

s es

tabli

shed

.

Sec

tion 3

31 P

OC

A c

reat

es a

n o

ffen

ce

of

fail

ure

to d

iscl

ose

by a

nom

inat

ed

off

icer

who

is

the

per

son a

ppoin

ted

for

the

purp

ose

s o

f A

rt. 8

(4)

A

rtic

le 3

4

34.1

B

y w

ay o

f der

ogat

ion f

rom

Art

icle

33(1

), M

ember

Sta

tes

may

, in

the

case

of

obli

ged

enti

ties

refe

rred

to i

n p

oin

t (3

)(a)

, (b

) an

d (

d)

of

Art

icle

2(1

), d

esig

nat

e an

appro

pri

ate

self

-reg

ula

tory

bod

y o

f th

e pro

fess

ion c

once

rned

as

the

auth

ori

ty t

o r

ecei

ve

the

info

rmat

ion r

efer

red t

o i

n

Art

icle

33(1

).

Opti

on n

ot

bei

ng e

xer

cise

d

W

ithout

pre

judic

e to

par

agra

ph 2

, th

e des

ignat

ed s

elf-

regula

tory

bod

y s

hal

l, i

n c

ases

ref

erre

d

to i

n t

he

firs

t su

bpar

agra

ph o

f th

is p

arag

raph,

forw

ard t

he

info

rmat

ion t

o t

he

FIU

pro

mptl

y

and u

nfi

lter

ed.

Opti

on n

ot

bei

ng e

xer

cise

d

34.2

2. M

ember

Sta

tes

shal

l not ap

ply

th

e obli

gat

ions

laid

dow

n in A

rtic

le 3

3(1

) to

nota

ries

, oth

er

indep

enden

t le

gal

pro

fess

ional

s, a

udit

ors

, ex

tern

al a

ccounta

nts

and

tax

ad

vis

ors

only

to

the

stri

ct e

xte

nt

that

such

exem

pti

on r

elat

es t

o i

nfo

rmat

ion t

hat

they

rec

eive

from

, or

obta

in o

n,

one

of

thei

r cl

ients

, in

th

e co

urs

e of

asce

rtai

nin

g th

e le

gal

posi

tion of

thei

r cl

ient,

or

per

form

ing t

hei

r ta

sk o

f def

endin

g o

r re

pre

senti

ng t

hat

cli

ent

in,

or

con

cern

ing,

judic

ial

pro

ceed

ings,

in

cludin

g p

rovid

ing a

dvic

e on inst

ituti

ng o

r av

oid

ing s

uch

pro

ceed

ings,

whet

her

such

info

rmat

ion i

s re

ceiv

ed o

r obta

ined

bef

ore

, d

uri

ng o

r af

ter

such

pro

ceed

ings.

Sec

tion 3

30(6

) of

PO

CA

Sec

tion 1

9(5

) of

TA

CT

A

rtic

le 3

5

35.1

1. M

ember

Sta

tes

shal

l re

quir

e obli

ged

enti

ties

to r

efra

in f

rom

car

ryin

g o

ut

tran

sact

ions

whic

h t

hey

kno

w o

r su

spec

t to

be

rela

ted t

o p

roce

eds

of

crim

inal

act

ivit

y o

r to

ter

rori

st

Par

t 7 o

f P

OC

A

finan

cin

g u

nti

l th

ey h

ave

com

ple

ted t

he

nec

essa

ry a

ctio

n i

n a

ccord

ance

wit

h p

oin

t (a

) of

the

firs

t su

bpar

agra

ph o

f A

rtic

le 3

3(1

) an

d h

ave

com

pli

ed w

ith a

ny f

urt

her

sp

ecif

ic i

nst

ruct

ions

from

the

FIU

or

the

com

pet

ent

auth

ori

ties

in a

ccord

ance

wit

h t

he

law

of

the

rele

van

t M

ember

Sta

te.

Par

t 3 o

f T

AC

T

35.2

2. W

her

e re

frai

nin

g f

rom

car

ryin

g o

ut

tran

sact

ions

refe

rred

to i

n p

arag

rap

h 1

is

imposs

ible

or

is lik

ely to f

rust

rate

eff

ort

s to

purs

ue

the

ben

efic

iari

es o

f a

susp

ecte

d o

per

atio

n, th

e obli

ged

enti

ties

conce

rned

shal

l in

form

the

FIU

im

med

iate

ly a

fter

war

ds.

Sec

tion 3

38(3

) of

PO

CA

Sec

tion 2

1A

of

TA

CT

.

A

rtic

le 3

6

36.1

M

ember

Sta

tes

shal

l en

sure

that

if,

in t

he

cours

e of

chec

ks

carr

ied o

ut

on t

he

obli

ged

enti

ties

by t

he

com

pet

ent

auth

ori

ties

ref

erre

d t

o i

n A

rtic

le 4

8,

or

in a

ny o

ther

way,

those

auth

ori

ties

dis

cover

fac

ts t

hat

could

be

rela

ted t

o m

oney l

aun

der

ing o

r to

ter

rori

st f

inan

cing,

they s

hal

l

pro

mptl

y i

nfo

rm t

he

FIU

.

Reg

ula

tion 4

6(5

)

36.2

M

ember

Sta

tes

shal

l en

sure

that

super

vis

ory

bo

die

s em

pow

ered

by l

aw o

r re

gula

tion t

o

over

see

the

stock

, fo

reig

n e

xch

ange

and f

inan

cial

der

ivat

ives

mar

ket

s in

form

the

FIU

if

they

dis

cover

fac

ts t

hat

could

be

rela

ted t

o m

oney l

aun

der

ing o

r te

rrori

st f

inan

cing.

Reg

ula

tion 1

03

A

rtic

le 3

7

37

Dis

closu

re o

f in

form

atio

n i

n g

ood f

aith

by a

n o

bli

ged

enti

ty o

r b

y a

n e

mplo

yee

or

dir

ecto

r o

f

such

an o

bli

ged

enti

ty i

n a

ccord

ance

wit

h A

rtic

les

33 a

nd 3

4 s

hal

l not

const

itute

a b

reac

h o

f

any re

stri

ctio

n on dis

closu

re of

info

rmat

ion im

pose

d b

y co

ntr

act

or

by an

y le

gis

lati

ve,

regula

tory

or

adm

inis

trat

ive

pro

vis

ion, an

d s

hal

l not

involv

e th

e obli

ged

enti

ty o

r it

s dir

ecto

rs

or

emplo

yee

s in

lia

bil

ity o

f an

y k

ind e

ven

in c

ircu

mst

ance

s w

her

e th

ey w

ere

not

pre

cise

ly

awar

e of

the

under

lyin

g c

rim

inal

act

ivit

y a

nd r

egar

dle

ss o

f w

het

her

ill

egal

act

ivit

y a

ctual

ly

occ

urr

ed.

Sec

tion 3

37 o

f P

OC

A;

Sec

tion 2

2B

of

TA

CT

A

rtic

le 3

8

38

Mem

ber

Sta

tes

shal

l en

sure

that

indiv

idual

s, i

ncl

udin

g e

mplo

yee

s an

d r

epre

senta

tives

of

the

obli

ged

enti

ty, w

ho r

eport

susp

icio

ns

of

money l

aunder

ing o

r te

rro

rist

fin

anci

ng i

nte

rnal

ly o

r

to t

he

FIU

, ar

e pro

tect

ed f

rom

bei

ng e

xpose

d t

o t

hre

ats

or

host

ile

acti

on,

and i

n p

arti

cula

r

from

adver

se o

r dis

crim

inat

ory

em

plo

ym

ent

acti

ons.

Par

t IV

A

Em

plo

ym

ent

Rig

hts

A

ct

1996

S

EC

TIO

N 2

P

roh

ibit

ion

of

dis

closu

re

A

rtic

le 3

9

39.1

O

bli

ged

en

titi

es

and

thei

r dir

ecto

rs

and

emplo

yee

s sh

all

not

dis

close

to

th

e cu

stom

er

conce

rned

or

to o

ther

th

ird p

erso

ns

the

fact

that

info

rmat

ion i

s bei

ng,

wil

l be

or

has

bee

n

tran

smit

ted i

n a

ccord

ance

wit

h A

rtic

le 3

3 o

r 34

or

that

a m

oney l

aund

erin

g o

r te

rro

rist

finan

cin

g a

nal

ysi

s is

bei

ng, or

may b

e, c

arri

ed o

ut.

Sec

tion 3

33A

PO

CA

Sec

tion 2

1D

TA

CT

.

39.2

T

he

pro

hib

itio

n l

aid d

ow

n i

n p

arag

raph 1

shal

l not

incl

ude

dis

closu

re t

o t

he

com

pet

ent

auth

ori

ties

, in

cludin

g t

he

self

-reg

ula

tory

bodie

s, o

r dis

closu

re f

or

law

enfo

rcem

ent

purp

ose

s.

Sec

tions

333B

to 3

33D

of

PO

CA

Sec

tions

21E

to 2

1G

of

TA

CT

39.3

T

he

pro

hib

itio

n l

aid d

ow

n i

n p

arag

raph 1

shal

l not

pre

ven

t dis

closu

re b

etw

een t

he

cred

it

inst

ituti

ons

and f

inan

cial

inst

ituti

ons

or

bet

wee

n t

hose

inst

ituti

ons

and t

hei

r bra

nch

es a

nd

maj

ori

ty-o

wn

ed s

ubsi

dia

ries

loca

ted i

n t

hir

d c

ountr

ies,

pro

vid

ed t

hat

those

bra

nch

es a

nd

maj

ori

ty-o

wn

ed su

bsi

dia

ries

fu

lly co

mply

w

ith th

e gro

up

-wid

e poli

cies

an

d pro

cedure

s,

incl

udin

g p

roce

du

res

for

shar

ing info

rmat

ion w

ithin

the

gro

up, in

acc

ord

ance

wit

h A

rtic

le 4

5,

and t

hat

th

e gro

up

-wid

e poli

cies

and p

roce

dure

s co

mply

wit

h t

he

requir

emen

ts l

aid d

ow

n i

n

this

Dir

ecti

ve.

Sec

tions

333B

to 3

33D

of

PO

CA

Sec

tions

21E

to 2

1G

of

TA

CT

39.4

T

he

pro

hib

itio

n l

aid d

ow

n i

n p

arag

raph 1

shal

l not

pre

ven

t dis

closu

re b

etw

een t

he

obli

ged

enti

ties

as

refe

rred

to i

n p

oin

t (3

)(a)

and (

b)

of

Art

icle

2(1

), o

r en

titi

es f

rom

thir

d c

ountr

ies

whic

h im

pose

req

uir

emen

ts e

quiv

alen

t to

those

lai

d d

ow

n in this

Dir

ecti

ve,

who p

erfo

rm thei

r

pro

fess

ional

act

ivit

ies,

whet

her

as

emplo

yee

s o

r n

ot,

wit

hin

the

sam

e le

gal

per

son o

r a

larg

er

Sec

tions

333B

to 3

33D

of

PO

CA

Sec

tions

21E

to 2

1G

of

TA

CT

stru

cture

to w

hic

h t

he

per

son b

elongs

and

whic

h s

har

es c

om

mon o

wner

ship

, m

anag

emen

t o

r

com

pli

ance

contr

ol.

39.5

F

or

obli

ged

enti

ties

ref

erre

d to in p

oin

ts (

1),

(2

), (

3)(

a) a

nd (

b)

of

Art

icle

2(1

) in

cas

es r

elat

ing

to t

he

sam

e cu

stom

er a

nd t

he

sam

e tr

ansa

ctio

n i

nvolv

ing t

wo o

r m

ore

obli

ged

enti

ties

, th

e

pro

hib

itio

n l

aid d

ow

n i

n p

arag

raph 1

of

this

Art

icle

shal

l not

pre

ven

t dis

closu

re b

etw

een t

he

rele

van

t obli

ged

enti

ties

pro

vid

ed t

hat

they

are

fro

m a

Mem

ber

Sta

te,

or

enti

ties

in a

thir

d

countr

y w

hic

h i

mpose

s re

quir

emen

ts e

quiv

alen

t to

those

lai

d d

ow

n i

n t

his

Dir

ecti

ve,

and t

hat

they

ar

e fr

om

th

e sa

me

pro

fess

ional

ca

tego

ry an

d ar

e su

bje

ct to

obli

gat

ions

as re

gar

ds

pro

fess

ional

sec

recy a

nd p

erso

nal

dat

a p

rote

ctio

n.

Sec

tions

333B

to 3

33D

of

PO

CA

Sec

tions

21E

to 2

1G

of

TA

CT

39.6

W

her

e th

e obli

ged

enti

ties

ref

erre

d t

o i

n p

oin

t (3

)(a)

and (

b)

of

Art

icle

2(1

) se

ek t

o d

issu

ade

a cl

ient

from

en

gag

ing in

ill

egal

act

ivit

y,

that

shal

l not

const

itute

dis

closu

re w

ithin

the

mea

nin

g o

f par

agra

ph 1

of

this

Art

icle

.

Sec

tions

333B

to 3

33D

of

PO

CA

Sec

tions

21E

to 2

1G

of

TA

CT

C

HA

PT

ER

V

D

AT

A P

RO

TE

CT

ION

, R

EC

OR

D-R

ET

EN

TIO

N A

ND

ST

AT

IST

ICA

L D

AT

A

A

rtic

le 4

0

40.1

M

ember

S

tate

s sh

all

requir

e obli

ged

en

titi

es

to

reta

in

the

foll

ow

ing

docu

men

ts

and

info

rmat

ion i

n a

ccord

ance

wit

h n

atio

nal

law

for

the

purp

ose

of

pre

ven

ting,

det

ecti

ng a

nd

inves

tigat

ing,

by t

he

FIU

or

by o

ther

com

pet

ent

auth

ori

ties

, poss

ible

mo

ney

lau

nder

ing o

r

terr

ori

st f

inan

cin

g:

Reg

ula

tion 4

0

(a

)in t

he

case

of

cust

om

er d

ue

dil

igen

ce, a

cop

y o

f th

e docu

men

ts a

nd i

nfo

rmat

ion w

hic

h a

re

nec

essa

ry t

o c

om

ply

wit

h t

he

cust

om

er d

ue

dil

igen

ce r

equir

emen

ts l

aid d

ow

n i

n C

hap

ter

II,

for

a per

iod

of

five

year

s af

ter

the

end

of

the

busi

nes

s re

lati

onsh

ip w

ith t

hei

r cu

stom

er

or

afte

r th

e dat

e o

f an

occ

asio

nal

tra

nsa

ctio

n;

Reg

ula

tion 4

0(2

)(a)

, (3

)

(b

)the

support

ing e

vid

ence

and r

ecord

s of

tran

sact

ions,

consi

stin

g o

f th

e ori

gin

al d

ocu

men

ts

or

copie

s ad

mis

sible

in j

udic

ial

pro

ceed

ings

under

the

appli

cable

nat

ional

law

, w

hic

h a

re

Reg

ula

tion 4

0(2

)(b),

(3

)

nec

essa

ry t

o i

den

tify

tra

nsa

ctio

ns,

for

a per

iod o

f fi

ve

yea

rs a

fter

the

end

of

a busi

nes

s

rela

tionsh

ip w

ith t

hei

r cu

stom

er o

r af

ter

the

dat

e o

f an

occ

asio

nal

tra

nsa

ctio

n.

U

pon e

xpir

y o

f th

e re

tenti

on p

erio

ds

refe

rred

to in the

firs

t su

bpar

agra

ph, M

ember

Sta

tes

shal

l

ensu

re t

hat

obli

ged

enti

ties

del

ete

per

son

al d

ata,

unle

ss o

ther

wis

e p

rovid

ed f

or

by n

atio

nal

law

, w

hic

h s

hal

l det

erm

ine

under

whic

h c

ircu

mst

ance

s obli

ged

enti

ties

may

or

shal

l fu

rther

reta

in d

ata.

Reg

ula

tion 4

0(5

)

M

ember

Sta

tes

may a

llow

or

requir

e fu

rther

ret

enti

on a

fter

they h

ave

carr

ied o

ut

a th

oro

ugh

asse

ssm

ent

of

the

nec

essi

ty a

nd p

ropo

rtio

nal

ity o

f su

ch f

urt

her

ret

enti

on a

nd c

onsi

der

it

to b

e

just

ifie

d a

s nec

essa

ry f

or

the

pre

ven

tion,

det

ecti

on o

r in

ves

tigat

ion o

f m

oney

lau

nder

ing o

r

terr

ori

st f

inan

cin

g. T

hat

furt

her

ret

enti

on p

erio

d s

hal

l not

exce

ed f

ive

addit

ional

yea

rs

40.2

W

her

e,

on

25

June

2015,

legal

pro

ceed

ings

conce

rned

w

ith

the

pre

ven

tion,

det

ecti

on,

inves

tigat

ion o

r pro

secu

tion o

f su

spec

ted m

oney lau

nder

ing o

r te

rro

rist

fin

anci

ng a

re p

endin

g

in a

Mem

ber

Sta

te,

and a

n o

bli

ged

enti

ty h

old

s in

form

atio

n o

r docu

men

ts r

elat

ing t

o t

hose

pen

din

g p

roce

edin

gs,

the

obli

ged

enti

ty m

ay r

etai

n t

hat

info

rmat

ion o

r th

ose

docu

men

ts,

in

acco

rdan

ce w

ith n

atio

nal

law

, fo

r a

per

iod o

f fi

ve

yea

rs f

rom

25 J

une

2015.

Mem

ber

Sta

tes

may

, w

ithout

pre

judic

e to

nat

ional

cri

min

al l

aw o

n e

vid

ence

appli

cable

to o

ngoin

g c

rim

inal

inves

tigat

ions

and l

egal

pro

ceed

ings,

all

ow

or

requir

e th

e re

tenti

on o

f su

ch i

nfo

rmat

ion o

r

docu

men

ts f

or

a fu

rther

per

iod o

f fi

ve

yea

rs w

her

e th

e nec

essi

ty a

nd p

ropo

rtio

nal

ity o

f su

ch

furt

her

re

tenti

on

has

b

een

esta

bli

shed

fo

r th

e pre

ven

tion,

det

ecti

on,

inves

tigat

ion

or

pro

secu

tion o

f su

spec

ted m

oney

lau

nd

erin

g o

r te

rrori

st f

inan

cing.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 4

1

41.1

T

he

pro

cess

ing o

f p

erso

nal

dat

a under

this

Dir

ecti

ve

is s

ubje

ct t

o D

irec

tive

95/4

6/E

C,

as

tran

spose

d i

nto

nat

ional

law

. P

erso

nal

dat

a th

at i

s pro

cess

ed p

urs

uan

t to

this

Dir

ecti

ve

by t

he

Com

mis

sion o

r b

y t

he

ES

As

is s

ubje

ct t

o R

egula

tion (

EC

) N

o 4

5/2

001.

Reg

ula

tion 4

1(1

)

41.2

P

erso

nal

dat

a sh

all

be

pro

cess

ed b

y o

bli

ged

enti

ties

on t

he

bas

is o

f th

is D

irec

tive

only

for

the

purp

ose

s of

the

pre

ven

tion o

f m

oney l

aund

erin

g a

nd t

erro

rist

fin

anci

ng a

s re

ferr

ed t

o i

n

Art

icle

1 a

nd

shal

l not be

furt

her

pro

cess

ed in a

way

that

is

inco

mp

atib

le w

ith those

purp

ose

s.

Reg

ula

tion 4

1(1

), (

3)

The

pro

cess

ing o

f per

son

al d

ata

on t

he

bas

is o

f th

is D

irec

tive

for

any o

ther

purp

ose

s, s

uch

as

com

mer

cial

purp

ose

s, s

hal

l be

pro

hib

ited

.

41.3

O

bli

ged

enti

ties

shal

l pro

vid

e new

cli

ents

wit

h t

he

info

rmat

ion r

equir

ed p

urs

uan

t to

Art

icle

10 o

f D

irec

tive

95/4

6/E

C b

efore

est

abli

shin

g a

busi

nes

s re

lati

onsh

ip o

r ca

rryin

g o

ut

an

occ

asio

nal

tr

ansa

ctio

n.

That

in

form

atio

n

shal

l,

in

par

ticu

lar,

in

clude

a gen

eral

noti

ce

conce

rnin

g t

he

legal

obli

gat

ions

of

obli

ged

enti

ties

under

this

Dir

ecti

ve

to p

roce

ss p

erso

nal

dat

a fo

r th

e purp

ose

s o

f th

e pre

ven

tion o

f m

oney lau

nder

ing a

nd ter

rori

st f

inan

cin

g a

s re

ferr

ed

to i

n A

rtic

le 1

of

this

Dir

ecti

ve.

Reg

ula

tion 4

1(4

)

41.4

4.

In a

pply

ing t

he

pro

hib

itio

n o

f dis

closu

re l

aid d

ow

n i

n A

rtic

le 3

9(1

), M

ember

Sta

tes

shal

l

adopt

legis

lati

ve

mea

sure

s re

stri

ctin

g, in

whole

or

in p

art,

the

dat

a su

bje

ct's

rig

ht

of

acce

ss t

o

per

sonal

dat

a re

lati

ng t

o h

im o

r her

to t

he

exte

nt

that

such

par

tial

or

com

ple

te r

estr

icti

on

const

itute

s a

nec

essa

ry a

nd p

roport

ionat

e m

easu

re in a

dem

ocr

atic

soci

ety w

ith d

ue

regar

d f

or

the

legit

imat

e in

tere

sts

of

the

per

son c

on

cern

ed t

o:

Dat

a P

rote

ctio

n

Act

19

98,

sect

ion

29(1

), (

2)

Sec

tions

333 a

nd 3

42, P

OC

A;

Sec

tion 2

1D

TA

CT

(a

)enab

le t

he

obli

ged

enti

ty o

r co

mpet

ent

nat

ional

auth

ori

ty t

o f

ulf

il i

ts t

asks

pro

per

ly f

or

the

purp

ose

s of

this

Dir

ecti

ve;

or

(b

)avoid

obst

ruct

ing o

ffic

ial

or

legal

inquir

ies,

anal

yse

s, i

nves

tigat

ions

or

pro

cedure

s fo

r th

e

purp

ose

s of

this

Dir

ecti

ve

and t

o e

nsu

re t

hat

the

pre

ven

tion, in

ves

tigat

ion a

nd d

etec

tion o

f

money

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng i

s not

jeopar

dis

ed.

Art

icle

42

42

Mem

ber

Sta

tes

shal

l re

qu

ire

that

thei

r obli

ged

enti

ties

hav

e sy

stem

s in

pla

ce t

hat

enab

le t

hem

to re

spond fu

lly an

d sp

eedil

y to

en

quir

ies

from

th

eir

FIU

o

r fr

om

oth

er au

tho

riti

es,

in

acco

rdan

ce w

ith t

hei

r nat

ional

law

, as

to w

het

her

they

are

mai

nta

inin

g o

r hav

e m

ainta

ined

,

duri

ng a

fiv

e-yea

r per

iod p

rior

to t

hat

enquir

y a

bu

sines

s re

lati

onsh

ip w

ith s

pec

ifie

d p

erso

ns,

and o

n t

he

nat

ure

of

that

rel

atio

nsh

ip,

thro

ugh s

ecure

ch

annel

s an

d i

n a

man

ner

that

ensu

res

full

confi

den

tial

ity o

f th

e en

quir

ies.

Reg

ula

tion 2

1(8

), (

9)

A

rtic

le 4

3

43

The

pro

cess

ing of

per

sonal

dat

a on th

e bas

is of

this

D

irec

tive

for

the

purp

ose

s o

f th

e

pre

ven

tion o

f m

oney l

aunder

ing a

nd t

erro

rist

fin

anci

ng a

s re

ferr

ed t

o i

n A

rtic

le 1

shal

l be

consi

der

ed t

o b

e a

mat

ter

of

publi

c in

tere

st u

nder

Dir

ecti

ve

95/4

6/E

C.

Reg

ula

tion 4

1(2

)

A

rtic

le 4

4

44.1

M

ember

Sta

tes

shal

l, f

or

the

purp

ose

s of

contr

ibuti

ng t

o t

he

pre

par

atio

n o

f ri

sk a

sses

smen

ts

purs

uan

t to

Art

icle

7, en

sure

that

they a

re a

ble

to r

evie

w t

he

effe

ctiv

enes

s o

f th

eir

syst

ems

to

com

bat

money l

aunder

ing o

r te

rro

rist

fin

anci

ng b

y m

ainta

inin

g c

om

pre

hen

sive

stat

isti

cs o

n

mat

ters

rel

evan

t to

the

effe

ctiv

enes

s o

f su

ch s

yst

ems.

Reg

ula

tion 5

1

44.2

T

he

stat

isti

cs r

efer

red t

o i

n p

arag

raph 1

shal

l in

clu

de:

S

ched

ule

4

(a

)dat

a m

easu

ring t

he

size

and i

mport

ance

of

the

dif

fere

nt

sect

ors

whic

h f

all

wit

hin

the

scope

of

this

D

irec

tive,

in

cludin

g

the

num

ber

of

enti

ties

an

d

per

sons

and

the

econom

ic

import

ance

of

each

sec

tor;

Sch

edule

4, par

as 1

– 6

(b

)dat

a m

easu

ring t

he

report

ing,

inves

tigat

ion a

nd j

udic

ial

phas

es o

f th

e nat

ional

AM

L/C

FT

regim

e, i

ncl

udin

g t

he

num

ber

of

susp

icio

us

tran

sact

ion r

eport

s m

ade

to t

he

FIU

, th

e

foll

ow

-up g

iven

to t

hose

rep

ort

s an

d, on a

n a

nnual

bas

is, th

e num

ber

of

case

s in

ves

tigat

ed,

the

num

ber

of

per

sons

pro

secu

ted, th

e num

ber

of

per

sons

convic

ted f

or

mo

ney

lau

nder

ing

or

terr

ori

st f

inan

cin

g o

ffen

ces,

the

types

of

pre

dic

ate

off

ence

s, w

her

e su

ch i

nfo

rmat

ion i

s

avai

lable

, an

d t

he

val

ue

in e

uro

of

pro

per

ty t

hat

has

bee

n f

roze

n, se

ized

or

confi

scat

ed;

Sch

edule

4, par

as 7

- 1

8

(c

)if

avai

lable

, dat

a id

enti

fyin

g t

he

num

ber

and p

erce

nta

ge

of

repo

rts

resu

ltin

g i

n f

urt

her

inves

tigat

ion,

toget

her

wit

h t

he

annual

rep

ort

to o

bli

ged

enti

ties

det

aili

ng t

he

use

fuln

ess

and f

oll

ow

-up o

f th

e re

po

rts

they

pre

sente

d;

Reg

ula

tion 1

04;

The

NC

A

as

a m

atte

r of

adm

inis

trat

ive

pra

ctic

e pro

duce

s an

annual

re

port

on S

AR

s, se

ttin

g out

the

requir

ed i

nfo

rmat

ion.

(d

)dat

a re

gar

din

g th

e num

ber

of

cross

-bord

er re

ques

ts fo

r in

form

atio

n th

at w

ere

mad

e,

rece

ived

, re

fuse

d a

nd p

arti

ally

or

full

y a

nsw

ered

by t

he

FIU

.

The

SA

Rs

annual

re

port

in

cludes

figure

s on i

nte

rnat

ional

cooper

atio

n

bet

wee

n F

IUs.

44.3

M

ember

Sta

tes

shal

l en

sure

that

a c

onso

lidat

ed r

evie

w o

f th

eir

stat

isti

cs i

s publi

shed

. R

egula

tion 5

1(3

)

44.4

M

ember

Sta

tes

shal

l tr

ansm

it t

o t

he

Com

mis

sion t

he

stat

isti

cs r

efer

red t

o i

n p

arag

raph 2

. N

o t

ransp

osi

tion r

equir

ed

C

HA

PT

ER

VI

P

OL

ICIE

S, P

RO

CE

DU

RE

S A

ND

SU

PE

RV

ISIO

N

S

EC

TIO

N 1

In

tern

al

pro

cedu

res,

tra

inin

g a

nd f

eedback

A

rtic

le 4

5

45.1

M

ember

Sta

tes

shal

l re

qu

ire

obli

ged

enti

ties

that

are

par

t of

a gro

up to im

ple

men

t gro

up

-wid

e

poli

cies

and p

roce

dure

s, i

ncl

udin

g d

ata

pro

tect

ion p

oli

cies

and p

oli

cies

an

d p

roce

du

res

for

shar

ing i

nfo

rmat

ion w

ithin

the

gro

up f

or

AM

L/C

FT

purp

ose

s. T

hose

poli

cies

and p

roce

dure

s

shal

l be

imple

men

ted e

ffec

tivel

y a

t th

e le

vel

of

bra

nch

es a

nd m

ajori

ty-o

wn

ed s

ubsi

dia

ries

in

Mem

ber

Sta

tes

and t

hir

d c

ountr

ies.

Reg

ula

tion 2

0(1

)

45.2

M

ember

S

tate

s sh

all

requir

e th

at obli

ged

en

titi

es th

at oper

ate

esta

bli

shm

ents

in

an

oth

er

Mem

ber

Sta

te e

nsu

re t

hat

those

est

abli

shm

ents

res

pec

t th

e nat

ional

pro

vis

ions

of

that

oth

er

Mem

ber

Sta

te t

ransp

osi

ng t

his

Dir

ecti

ve.

Reg

ula

tion 2

0(2

)

45.3

M

ember

Sta

tes

shal

l en

sure

that

wher

e obli

ged

enti

ties

hav

e bra

nch

es o

r m

ajori

ty-o

wned

subsi

dia

ries

loca

ted

in t

hir

d c

ountr

ies

wher

e th

e m

inim

um

AM

L/C

FT

req

uir

emen

ts a

re l

ess

stri

ct than

those

of

the

Mem

ber

Sta

te, th

eir

bra

nch

es a

nd m

ajori

ty-o

wn

ed s

ubsi

dia

ries

loca

ted

in

the

thir

d

countr

y

imple

men

t th

e re

quir

emen

ts

of

the

Mem

ber

S

tate

, in

cludin

g

dat

a

pro

tect

ion, to

the

exte

nt

that

the

thir

d c

ountr

y's

law

so a

llow

s.

Reg

ula

tion 2

0(3

)

45.4

T

he

Mem

ber

Sta

tes

and

the

ES

As

shal

l in

form

eac

h o

ther

of

inst

ance

s in

whic

h a

thir

d

countr

y's

law

does

not

per

mit

the

imple

men

tati

on o

f th

e poli

cies

and p

roce

dure

s re

quir

ed

under

par

agra

ph 1

. In

such

cas

es, co

ord

inat

ed a

ctio

n m

ay b

e ta

ken

to p

urs

ue

a so

luti

on.

No t

ransp

osi

tion r

equir

ed

45.5

M

ember

S

tate

s sh

all

requir

e th

at,

wher

e a

thir

d

countr

y's

la

w

does

not

per

mit

th

e

imple

men

tati

on o

f th

e poli

cies

and p

roce

dure

s re

quir

ed u

nder

par

agra

ph 1

, obli

ged

enti

ties

ensu

re t

hat

bra

nch

es a

nd

maj

ori

ty-o

wned

subsi

dia

ries

in

that

thir

d c

ountr

y a

pply

addit

ional

mea

sure

s to

eff

ecti

vel

y h

andle

the

risk

of

money

lau

nder

ing o

r te

rro

rist

fin

anci

ng, an

d info

rm

the

com

pet

ent

auth

ori

ties

of

thei

r hom

e M

ember

Sta

te.

If t

he

addit

ional

mea

sure

s ar

e not

suff

icie

nt,

the

com

pet

ent

auth

ori

ties

of

the

hom

e M

ember

Sta

te s

hal

l ex

erci

se a

ddit

ional

super

vis

ory

act

ions,

incl

udin

g r

equir

ing t

hat

the

gro

up d

oes

not

esta

bli

sh o

r th

at i

t te

rmin

ates

busi

nes

s re

lati

onsh

ips,

an

d d

oes

not

under

tak

e tr

ansa

ctio

ns

and,

wher

e n

eces

sary

, re

ques

tin

g

the

gro

up

to c

lose

dow

n i

ts o

per

atio

ns

in t

he

thir

d c

ountr

y.

Reg

ula

tion 2

0(4

) an

d 2

5

45.6

T

he

ES

As

shal

l d

evel

op d

raft

reg

ula

tory

tec

hnic

al s

tandar

ds

spec

ifyin

g t

he

type

of

addit

ional

mea

sure

s re

ferr

ed t

o i

n p

arag

raph 5

and t

he

min

imum

act

ion t

o b

e ta

ken

by c

redit

inst

ituti

ons

and f

inan

cial

inst

ituti

ons

wher

e a

thir

d c

ountr

y's

law

does

not

per

mit

the

imple

men

tati

on o

f

the

mea

sure

s re

quir

ed u

nder

par

agra

phs

1 a

nd 3

.

No t

ransp

osi

tion r

equir

ed

T

he

ES

As

shal

l su

bm

it th

e dra

ft re

gula

tory

te

chnic

al st

and

ards

refe

rred

to

in

th

e fi

rst

subpar

agra

ph t

o t

he

Com

mis

sion b

y 2

6 D

ecem

ber

2016.

No t

ransp

osi

tion r

equir

ed

45.7

P

ow

er i

s del

egat

ed t

o t

he

Com

mis

sion t

o a

dopt

the

regula

tory

tec

hnic

al s

tandar

ds

refe

rred

to

in p

arag

raph 6

of

this

Art

icle

in a

ccord

ance

wit

h A

rtic

les

10 t

o 1

4 o

f R

egula

tions

(EU

) N

o

1093/2

010, (E

U)

No 1

09

4/2

010 a

nd (

EU

) N

o 1

09

5/2

010.

No t

ransp

osi

tion r

equir

ed

45.8

M

ember

Sta

tes

shal

l en

sure

that

the

shar

ing o

f in

form

atio

n w

ithin

the

gro

up i

s al

low

ed.

Info

rmat

ion o

n s

usp

icio

ns

that

funds

are

the

pro

ceed

s of

crim

inal

act

ivit

y o

r ar

e re

late

d t

o

terr

ori

st f

inan

cin

g r

eport

ed t

o t

he

FIU

sh

all

be

shar

ed w

ithin

the

gro

up,

unle

ss o

ther

wis

e

inst

ruct

ed b

y t

he

FIU

.

Reg

ula

tion 2

0(5

)

Sec

tion

333B

P

OC

A;

sect

ion

21E

TA

CT

45.9

M

ember

Sta

tes

may r

equ

ire

elec

tronic

money i

ssu

ers

as d

efin

ed i

n p

oin

t (3

) of

Art

icle

2 o

f

Dir

ecti

ve

2009/1

10/E

C a

nd p

aym

ent

serv

ice

pro

vid

ers

as d

efin

ed i

n p

oin

t (9

) of

Art

icle

4 o

f

Dir

ecti

ve

2007/6

4/E

C e

stab

lish

ed o

n t

hei

r te

rrit

ory

in f

orm

s oth

er t

han

a b

ranch

, an

d w

hose

Reg

ula

tion 2

1(7

) an

d 2

2

hea

d o

ffic

e is

sit

uat

ed i

n a

noth

er M

ember

Sta

te,

to a

ppoin

t a

centr

al c

onta

ct p

oin

t in

thei

r

terr

itory

to e

nsu

re,

on b

ehal

f of

the

appoin

ting i

nst

ituti

on,

com

pli

ance

wit

h A

ML

/CF

T r

ule

s

and t

o f

acil

itat

e su

per

vis

ion b

y c

om

pet

ent

auth

ori

ties

, in

cludin

g b

y p

rovid

ing c

om

pet

ent

auth

ori

ties

wit

h d

ocu

men

ts a

nd i

nfo

rmat

ion o

n r

eques

t.

45.1

0

The

ES

As

shal

l dev

elop d

raft

reg

ula

tory

tec

hnic

al s

tandar

ds

on t

he

crit

eria

for

det

erm

inin

g

the

circ

um

stan

ces

in w

hic

h t

he

appoin

tmen

t of

a ce

ntr

al c

onta

ct p

oin

t purs

uan

t to

par

agra

ph

9 i

s ap

pro

pri

ate,

and w

hat

the

funct

ions

of

the

centr

al c

onta

ct p

oin

ts s

hould

be.

No t

ransp

osi

tion r

equir

ed

T

he

ES

As

shal

l su

bm

it th

e dra

ft re

gula

tory

te

chnic

al st

and

ards

refe

rred

to

in

th

e fi

rst

subpar

agra

ph t

o t

he

Com

mis

sion b

y 2

6 J

une

2017.

No t

ransp

osi

tion r

equir

ed

45.1

1

Pow

er i

s del

egat

ed t

o t

he

Com

mis

sion t

o a

dopt

the

regula

tory

tec

hnic

al s

tandar

ds

refe

rred

to

in p

arag

raph 1

0 o

f th

is A

rtic

le i

n a

ccord

ance

wit

h A

rtic

les

10 t

o 1

4 o

f R

egula

tions

(EU

) N

o

1093/2

010, (E

U)

No 1

09

4/2

010 a

nd (

EU

) N

o 1

09

5/2

010.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 4

6

46.1

M

ember

Sta

tes

shal

l re

quir

e th

at o

bli

ged

enti

ties

tak

e m

easu

res

pro

port

ion

ate

to t

hei

r ri

sks,

nat

ure

and s

ize

so t

hat

th

eir

emplo

yee

s ar

e aw

are

of

the

pro

vis

ions

adopte

d p

urs

uan

t to

this

Dir

ecti

ve,

incl

udin

g r

elev

ant

dat

a pro

tect

ion r

equ

irem

ents

.

Reg

ula

tion 2

4(1

), (

2)

and

(3)

T

hose

mea

sure

s sh

all

incl

ude

par

tici

pat

ion o

f th

eir

emplo

yee

s in

spec

ial

ongoin

g t

rain

ing

pro

gra

mm

es t

o h

elp t

hem

rec

ognis

e oper

atio

ns

whic

h m

ay b

e re

late

d t

o m

oney

lau

nd

erin

g o

r

terr

ori

st f

inan

cin

g a

nd t

o i

nst

ruct

them

as

to h

ow

to p

roce

ed i

n s

uch

cas

es.

Reg

ula

tion 2

4(1

)(a)

(ii)

W

her

e a

nat

ura

l p

erso

n f

alli

ng w

ithin

an

y o

f th

e ca

tegori

es l

iste

d i

n p

oin

t (3

) of

Art

icle

2(1

)

per

form

s pro

fess

ional

act

ivit

ies

as a

n e

mplo

yee

of

a le

gal

per

son,

the

obli

gat

ions

in t

his

Sec

tion s

hal

l ap

ply

to t

hat

leg

al p

erso

n r

ath

er t

han

to t

he

nat

ura

l per

son.

Reg

ula

tion 2

4(1

)

46.2

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

hav

e ac

cess

to u

p-t

o-d

ate

info

rmat

ion o

n t

he

pra

ctic

es o

f m

oney l

aun

der

ers

and

fin

ance

rs o

f te

rrori

sm a

nd o

n i

ndic

atio

ns

lead

ing t

o t

he

reco

gnit

ion o

f su

spic

ious

tran

sact

ions.

Reg

ula

tion 4

7

46.3

M

ember

Sta

tes

shal

l en

sure

that

, w

her

e pra

ctic

able

, ti

mel

y f

eedbac

k o

n t

he

effe

ctiv

enes

s of

and f

oll

ow

-up

to r

eport

s of

susp

ecte

d m

oney l

aun

der

ing o

r te

rrori

st f

inan

cing i

s pro

vid

ed t

o

obli

ged

enti

ties

.

Reg

ula

tion 1

04

46.4

M

ember

Sta

tes

shal

l re

quir

e th

at,

wh

ere

appli

cab

le,

obli

ged

enti

ties

iden

tify

th

e m

ember

of

the

man

agem

ent boar

d w

ho is

resp

onsi

ble

fo

r th

e im

ple

men

tati

on o

f th

e la

ws,

reg

ula

tions

and

adm

inis

trat

ive

pro

vis

ions

nec

essa

ry t

o c

om

ply

wit

h t

his

Dir

ecti

ve.

Reg

ula

tion 2

1(1

)(a)

; (4

)

S

EC

TIO

N 2

S

uper

visi

on

A

rtic

le 4

7

47.1

M

ember

Sta

tes

shal

l p

rovid

e th

at c

urr

ency e

xch

ange

and c

heq

ue

cash

ing o

ffic

es a

nd t

rust

or

com

pan

y s

ervic

e pro

vid

ers

be

lice

nse

d o

r re

gis

tere

d a

nd p

rovid

ers

of

gam

bli

ng s

ervic

es b

e

regula

ted.

Reg

ula

tion 5

4 a

nd 5

6

Gam

bli

ng A

ct 2

005

47.2

M

ember

Sta

tes

shal

l re

quir

e co

mpet

ent

auth

ori

ties

to e

nsu

re t

hat

the

per

sons

who h

old

a

man

agem

ent

funct

ion i

n t

he

enti

ties

ref

erre

d t

o i

n p

arag

raph 1

, or

are

the

ben

efic

ial

ow

ner

s

of

such

enti

ties

, ar

e fi

t an

d p

roper

per

sons.

Reg

ula

tion 5

8

47.3

W

ith r

espec

t to

the

obli

ged

enti

ties

ref

erre

d t

o i

n p

oin

t (3

)(a)

, (b

) an

d (

d)

of

Art

icle

2(1

),

Mem

ber

Sta

tes

shal

l en

sure

that

com

pet

ent au

thori

ties

tak

e th

e n

eces

sary

mea

sure

s to

pre

ven

t

crim

inal

s co

nvic

ted

in r

elev

ant

area

s or

thei

r as

soci

ates

fro

m h

old

ing a

man

agem

ent

fun

ctio

n

in o

r bei

ng t

he

ben

efic

ial

ow

ner

s of

those

obli

ged

enti

ties

.

Reg

ula

tion 2

6

A

rtic

le 4

8

48.1

M

ember

Sta

tes

shal

l re

quir

e th

e co

mpet

ent

auth

ori

ties

to m

onit

or

effe

ctiv

ely,

and t

o t

ake

the

mea

sure

s nec

essa

ry t

o e

nsu

re, co

mpli

ance

wit

h t

his

Dir

ecti

ve.

Reg

ula

tion 4

6(1

)

48.2

M

ember

Sta

tes

shal

l en

sure

that

the

com

pet

ent

auth

ori

ties

hav

e ad

equat

e pow

ers,

incl

udin

g

the

pow

er to

co

mpel

th

e pro

duct

ion o

f an

y in

form

atio

n th

at is

re

lev

ant

to m

onit

ori

ng

com

pli

ance

and p

erfo

rm c

hec

ks,

and h

ave

adeq

uat

e fi

nan

cial

, hum

an a

nd

tec

hnic

al r

esourc

es

to p

erfo

rm t

hei

r fu

nct

ions.

Mem

ber

Sta

tes

shal

l en

sure

that

sta

ff o

f th

ose

au

thori

ties

mai

nta

in

hig

h p

rofe

ssio

nal

sta

ndar

ds,

incl

udin

g s

tandar

ds

of

confi

den

tial

ity a

nd d

ata

pro

tect

ion,

that

they

are

of

hig

h i

nte

gri

ty a

nd a

re a

ppro

pri

atel

y s

kil

led.

Reg

ula

tions

49(1

) an

d (

2)(

a) a

nd 6

6

to 7

4

48.3

In

the

case

of

cred

it i

nst

ituti

ons,

fin

anci

al i

nst

ituti

ons,

and p

rovid

ers

of

gam

bli

ng s

ervic

es,

com

pet

ent

auth

ori

ties

shal

l hav

e en

han

ced s

uper

vis

ory

pow

ers.

Fin

anci

al S

ervic

es a

nd M

arket

s A

ct

2000 (

see

in p

arti

cula

r P

arts

4A

; 5;

9A

; 11;

12;

12A

; 14)

Gam

bli

ng A

ct 2

005

48.4

M

ember

Sta

tes

shal

l en

sure

that

com

pet

ent

auth

ori

ties

of

the

Mem

ber

Sta

te i

n w

hic

h t

he

obli

ged

enti

ty o

per

ates

est

abli

shm

ents

super

vis

e th

at those

est

abli

shm

ents

res

pec

t th

e nat

ional

pro

vis

ions

of

that

Mem

ber

Sta

te t

ransp

osi

ng t

his

Dir

ecti

ve.

In t

he

case

of

the

esta

bli

shm

ents

refe

rred

to i

n A

rtic

le 4

5(9

), s

uch

super

vis

ion m

ay i

ncl

ud

e th

e ta

kin

g o

f ap

pro

pri

ate

and

pro

port

ionat

e m

easu

res

to a

ddre

ss s

erio

us

fail

ings

that

req

uir

e im

med

iate

rem

edie

s. T

hose

mea

sure

s sh

all

be

tem

po

rary

and b

e te

rmin

ated

when

the

fail

ings

iden

tifi

ed a

re a

ddre

ssed

,

incl

udin

g w

ith t

he

assi

stan

ce o

f or

in c

ooper

atio

n w

ith t

he

com

pet

ent

auth

ori

ties

of

the

hom

e

Mem

ber

Sta

te o

f th

e obli

ged

enti

ty, in

acc

ord

ance

wit

h A

rtic

le 4

5(2

).

Reg

ula

tion 8

, 46, 76 t

o 9

1

48.5

M

ember

Sta

tes

shal

l en

sure

that

the

com

pet

ent

auth

ori

ties

of

the

Mem

ber

Sta

te i

n w

hic

h t

he

obli

ged

enti

ty o

per

ates

est

abli

shm

ents

shal

l co

oper

ate

wit

h t

he

com

pet

ent

auth

ori

ties

of

the

Mem

ber

Sta

te i

n w

hic

h t

he

obli

ged

enti

ty h

as i

ts h

ead o

ffic

e, t

o e

nsu

re e

ffec

tive

super

vis

ion

of

the

requir

emen

ts o

f th

is D

irec

tive.

Reg

ula

tion 5

0(1

)(c)

, (2

), (

3),

and (

4)

48.6

M

ember

Sta

tes

shal

l en

sure

that

when

apply

ing a

ris

k-b

ased

appro

ach t

o s

uper

vis

ion,

the

com

pet

ent

auth

ori

ties

:

Reg

ula

tion 4

6

(a

)hav

e a

clea

r under

stan

din

g o

f th

e ri

sks

of

money lau

nder

ing a

nd

ter

rori

st f

inan

cin

g p

rese

nt

in t

hei

r M

ember

Sta

te;

Reg

ula

tion

17

(1),

(2

),

(4),

an

d

46(2

)(a)

(b

)hav

e on-s

ite

and o

ff-s

ite

acce

ss t

o a

ll r

elev

ant

info

rmat

ion o

n t

he

spec

ific

dom

esti

c an

d

inte

rnat

ional

ris

ks

asso

ciat

ed w

ith c

ust

om

ers,

pro

duct

s an

d s

ervic

es o

f th

e obli

ged

enti

ties

;

and

Reg

ula

tion 4

6(2

)(b)

(c

)bas

e th

e fr

equ

ency a

nd i

nte

nsi

ty o

f on-s

ite

and o

ff-s

ite

super

vis

ion o

n t

he

risk

pro

file

of

obli

ged

enti

ties

, an

d o

n t

he

risk

s of

money

lau

nder

ing a

nd t

erro

rist

fin

anci

ng i

n t

hat

Mem

ber

Sta

te.

Reg

ula

tion 4

6(2

)(c)

, (d

), (

3),

(4)

48.7

The

asse

ssm

ent

of

the

money

la

under

ing an

d te

rrori

st fi

nan

cin

g ri

sk p

rofi

le of

obli

ged

enti

ties

, in

cludin

g t

he

risk

s of

non-c

om

pli

ance

, sh

all

be

revie

wed

both

per

iodic

ally

and w

hen

ther

e ar

e m

ajor

even

ts o

r dev

elopm

ents

in t

hei

r m

anag

emen

t an

d o

per

atio

ns.

Reg

ula

tion 1

7(7

), (

8)

48.8

M

ember

S

tate

s sh

all

ensu

re th

at co

mpet

ent

auth

ori

ties

ta

ke

into

ac

cou

nt

the

deg

ree

of

dis

cret

ion al

low

ed to

th

e obli

ged

en

tity

, an

d ap

pro

pri

atel

y re

vie

w th

e ri

sk as

sess

men

ts

under

lyin

g t

his

dis

cret

ion,

and t

he

adeq

uac

y a

nd i

mple

men

tati

on o

f it

s in

tern

al p

oli

cies

,

contr

ols

and p

roce

dure

s.

Reg

ula

tion 4

6(3

)(b),

(4

)

48.9

In

the

case

of

the

obli

ged

enti

ties

ref

erre

d t

o i

n p

oin

t (3

)(a)

, (b

) an

d (

d)

of

Art

icle

2(1

),

Mem

ber

Sta

tes

may a

llow

the

fun

ctio

ns

refe

rred

to i

n p

arag

raph

1 o

f th

is A

rtic

le t

o b

e

per

form

ed b

y s

elf-

regula

tory

bodie

s, p

rovid

ed t

hat

those

sel

f-re

gula

tory

bo

die

s co

mply

wit

h

par

agra

ph 2

of

this

Art

icle

.

Reg

ula

tion 7

48.1

0

By 2

6 J

une

2017,

the

ES

As

shal

l is

sue

guid

elin

es a

ddre

ssed

to c

om

pet

ent

auth

ori

ties

in

acco

rdan

ce w

ith A

rtic

le 1

6 o

f R

egula

tions

(EU

) N

o 1

093/2

010, (

EU

) N

o 1

09

4/2

010 a

nd (

EU

)

No 1

095/2

010 o

n t

he

char

acte

rist

ics

of

a ri

sk-b

ased

appro

ach t

o s

up

ervis

ion a

nd t

he

step

s to

be

taken

when

conduct

ing s

uper

vis

ion o

n a

ris

k-b

ased

bas

is.

Spec

ific

acc

ount

shal

l be

taken

of

the

nat

ure

and s

ize

of

the

busi

nes

s, a

nd,

wher

e ap

pro

pri

ate

and p

roport

ionat

e, s

pec

ific

mea

sure

s sh

all

be

laid

dow

n.

No t

ransp

osi

tion r

equir

ed

S

EC

TIO

N 3

C

ooper

ati

on

S

ub

sect

ion

I

N

ati

on

al

coop

erati

on

A

rtic

le 4

9

49

Mem

ber

Sta

tes

shal

l en

sure

that

poli

cy m

aker

s, t

he

FIU

s, s

uper

vis

ors

and

oth

er c

om

pet

ent

auth

ori

ties

involv

ed i

n A

ML

/CF

T h

ave

effe

ctiv

e m

echan

ism

s to

enab

le t

hem

to c

ooper

ate

and c

oord

inat

e dom

esti

call

y c

once

rnin

g t

he

dev

elo

pm

ent

and i

mple

men

tati

on o

f poli

cies

and

acti

vit

ies

to c

om

bat

mo

ney

lau

nder

ing a

nd

ter

rori

st f

inan

cin

g,

incl

udin

g w

ith a

vie

w t

o

fulf

illi

ng t

hei

r obli

gat

ion u

nder

Art

icle

7.

Reg

ula

tion 1

6;

17;

49(3

)(a)

; 50;

52;

66, 67 a

nd 6

8

S

ub

sect

ion

II

C

oop

erati

on

wit

h t

he

ES

As

A

rtic

le 5

0

50

The

com

pet

ent

auth

ori

ties

shal

l pro

vid

e th

e E

SA

s w

ith a

ll t

he

info

rmat

ion n

eces

sary

to a

llow

them

to c

arry

out

thei

r du

ties

under

this

Dir

ecti

ve.

Reg

ula

tion 5

0(5

)

S

ub

sect

ion

III

C

oop

erati

on

bet

wee

n F

IUs

an

d w

ith

th

e C

om

mis

sion

A

rtic

le 5

1

51

The

Com

mis

sion m

ay l

end s

uch

ass

ista

nce

as

may

be

nee

ded

to f

acil

itat

e co

ord

inat

ion,

incl

udin

g t

he

exch

ange

of

info

rmat

ion b

etw

een F

IUs

wit

hin

the

Unio

n.

It m

ay r

egula

rly

No t

ransp

osi

tion r

equir

ed

conven

e m

eeti

ngs

of

the

EU

FIU

s' P

latf

orm

co

mpose

d o

f re

pre

senta

tiv

es f

rom

Mem

ber

Sta

tes'

FIU

s, i

n o

rder

to

fac

ilit

ate

cooper

atio

n a

mong F

IUs,

ex

chan

ge

vie

ws

and p

rovid

e

advic

e on im

ple

men

tati

on is

sues

re

levan

t fo

r F

IUs

and re

po

rtin

g en

titi

es as

w

ell

as on

cooper

atio

n-r

elat

ed i

ssues

such

as

effe

ctiv

e F

IU c

ooper

atio

n, th

e id

enti

fica

tion o

f su

spic

ious

tran

sact

ions

wit

h a

cro

ss-b

ord

er d

imen

sion,

the

stan

dar

dis

atio

n o

f re

port

ing f

orm

ats

thro

ugh

the

FIU

.net

or

its

succ

esso

r, t

he

join

t an

alysi

s o

f cr

oss

-bord

er c

ases

, an

d t

he

iden

tifi

cati

on o

f

tren

ds

and f

acto

rs r

elev

ant

to a

sses

sing t

he

risk

s of

money

lau

nd

erin

g a

nd t

erro

rist

fin

anci

ng

at n

atio

nal

and s

upra

nat

ional

lev

el.

A

rtic

le 5

2

52

Mem

ber

S

tate

s sh

all

ensu

re th

at F

IUs

cooper

ate

wit

h ea

ch oth

er to

th

e gre

ates

t ex

tent

poss

ible

, re

gar

dle

ss o

f th

eir

org

anis

atio

nal

sta

tus.

The

UK

is

com

pli

ant

wit

h C

ounci

l

Dec

isio

n 2000/6

42/J

HA

co

nce

rnin

g

arra

ngem

ents

fo

r co

oper

atio

n

bet

wee

n fi

nan

cial

in

tell

igen

ce unit

s

of

Mem

ber

S

tate

s.

In

resp

ect

of

exch

angin

g

info

rmat

ion

F

IUs

are

centr

al

hubs

for

gat

her

ing

and

shar

ing

inte

llig

ence

re

lati

ng

to

money

la

under

ing

and

terr

ori

st

finan

cin

g.

This

m

easu

re pro

vid

es a

fram

ewo

rk

for

FIU

s to

sh

are

inte

llig

ence

an

d

also

p

rovid

es

the

com

pute

r sy

stem

F

IU.n

et

whic

h

faci

lita

tes

secu

re

and

tim

ely

com

munic

atio

n a

s w

ell

as p

rovid

ing

a num

ber

of

tech

nolo

gic

al

capab

ilit

ies.

The

UK

FIU

's b

asis

for

shar

ing i

nfo

rmat

ion i

s S

ecti

ons

7 a

nd

8e

of

the

Cri

me

and C

ourt

s A

ct 2

013.

Thro

ugh

mem

ber

ship

of

the

Egm

ont

Gro

up o

f F

inan

cial

Inte

llig

ence

Unit

s

the

UK

FIU

can

tra

nsm

it a

nd r

ecei

ve

sensi

tive

dat

a bet

wee

n a

wid

e gro

up

of

juri

sdic

tions

wit

hout

a sp

ecif

ic

MO

U.

A

rtic

le 5

3

53.1

M

ember

S

tate

s sh

all

ensu

re

that

F

IUs

exch

ange,

sp

onta

neo

usl

y

or

upon

reques

t,

any

info

rmat

ion t

hat

may b

e re

lev

ant

for

the

pro

cess

ing o

r an

alysi

s of

info

rmat

ion b

y t

he

FIU

rela

ted t

o m

oney

lau

nder

ing o

r te

rrori

st f

inan

cin

g a

nd t

he

nat

ura

l or

legal

per

son i

nvolv

ed,

even

if

the

typ

e of

pre

dic

ate

off

ence

s th

at m

ay b

e in

volv

ed i

s not

iden

tifi

ed a

t th

e ti

me

of

the

exch

ange.

The

FIU

en

gag

es i

n s

uch

act

ivit

y b

y

reas

on

of

the

dis

char

ge

of

its

funct

ions

of

the

NC

A w

hic

h a

re s

et

out

in S

. 1 a

nd 8

of

the

Cri

me

and

Court

s A

ct 2

013.

The

UK

FIU

shar

es

info

rmat

ion s

ecure

ly w

ith o

ther

MS

FIU

s,

thro

ugh

the

FIU

.net

.

The

UK

FIU

has

agre

ed t

o a

nd a

dher

es t

o

the

Egm

ont P

rinci

ple

s of

Info

rmat

ion

Shar

ing

A

req

ues

t sh

all

conta

in t

he

rele

van

t fa

cts,

bac

kgro

und i

nfo

rmat

ion,

reas

ons

for

the

reques

t

and h

ow

the

info

rmat

ion s

ought

wil

l be

use

d.

Dif

fere

nt

exch

ange

mec

han

ism

s m

ay a

pply

if

so a

gre

ed b

etw

een t

he

FIU

s, i

n p

arti

cula

r as

reg

ards

exch

anges

thro

ugh t

he

FIU

.net

or

its

succ

esso

r.

Thro

ugh

mem

ber

ship

of

the

Egm

ont

Gro

up o

f F

inan

cial

Inte

llig

ence

Unit

s

the

UK

FIU

can

tra

nsm

it a

nd r

ecei

ve

sensi

tive

dat

a bet

wee

n a

wid

e gro

up

of

juri

sdic

tions

wit

hout

a sp

ecif

ic

MO

U.

The

UK

FIU

use

s th

e E

gm

ont

secu

re w

eb t

o t

ransm

it s

ensi

tive

dat

a

and

has

ac

cess

to

F

IU.n

et

to

com

munic

ate

wit

h E

U M

S F

IUs.

W

hen

an F

IU r

ecei

ves

a r

eport

purs

uan

t to

poin

t (a

) of

the

firs

t su

bp

arag

rap

h o

f A

rtic

le 3

3(1

)

whic

h c

on

cern

s an

oth

er M

ember

Sta

te, it

shal

l pro

mptl

y f

orw

ard

it to

the

FIU

of

that

Mem

ber

Sta

te.

As

a m

atte

r o

f oper

atio

nal

pra

ctic

e,

the

UK

F

IU

dis

sem

inat

es

such

report

s to

oth

er

Mem

ber

S

tate

s

pro

mptl

y t

hro

ugh F

IU.n

et.

53.2

M

ember

Sta

tes

shal

l en

sure

that

the

FIU

to w

hom

the

reques

t is

mad

e is

req

uir

ed t

o u

se t

he

whole

ran

ge

of

its

avai

lable

pow

ers

whic

h i

t w

ould

norm

ally

use

dom

esti

call

y f

or

rece

ivin

g

and a

nal

ysi

ng info

rmat

ion w

hen

it re

pli

es to a

req

ues

t fo

r in

form

atio

n r

efer

red to in p

arag

rap

h

1 f

rom

anoth

er F

IU. T

he

FIU

to w

hom

the

reques

t is

mad

e sh

all

resp

ond i

n a

tim

ely m

anner

.

For

EU

F

ram

ewo

rk D

ecis

ions,

U

K

FIU

A r

esponse

tim

es a

re f

ixed

at

8

hours

for

urg

ent

reques

ts,

7 d

ays

for

non-u

rgen

t (w

her

e dat

a is

w

ithin

NC

A c

ore

syst

ems)

and u

p to 2

8 d

ays

(wher

e dat

a is

hel

d b

y t

hir

d p

arti

es).

Both

th

e urg

ent

and

non-u

rgen

t

reques

ts (

wit

h a

cces

s to

NC

A d

ata)

can b

e ex

tended

to 3

days

and 1

4 d

ays

resp

ecti

vel

y.

Th

e F

IU c

an u

se t

he

pow

ers

avai

lable

to

it

to

obta

in

furt

her

in

form

atio

n,

incl

udin

g

the

new

furt

her

info

rmat

ion o

rder

pow

er

in s

ecti

ons

339Z

H t

o 3

39Z

K P

OC

A

(inse

rted

b

y

sect

ion

12

of

the

Cri

min

al F

inan

ces

Act

2017).

W

hen

an F

IU s

eeks

to o

bta

in a

ddit

ional

info

rmat

ion f

rom

an o

bli

ged

enti

ty e

stab

lish

ed i

n

anoth

er M

ember

Sta

te w

hic

h o

per

ates

on i

ts t

erri

tory

, th

e re

qu

est

shal

l be

addre

ssed

to t

he

FIU

of

the

Mem

ber

Sta

te i

n w

hose

ter

rito

ry t

he

ob

liged

enti

ty i

s es

tabli

shed

. T

hat

FIU

shal

l

tran

sfer

req

ues

ts a

nd a

nsw

ers

pro

mptl

y.

The

UK

FIU

cooper

ates

wit

h o

ther

MS

FIU

s to

obta

in s

uch

info

rmat

ion.

It a

lso h

as p

ow

ers,

thro

ugh t

he

NC

A,

to r

eques

t or

requir

e th

e pro

vis

ion o

f

info

rmat

ion

from

re

gula

ted

sect

or

enti

ties

.

The

UK

FIU

h

as

agre

ed

to

and

adher

es t

o t

he

Egm

ont

Pri

nci

ple

s of

Info

rmat

ion S

har

ing.

53.3

A

n F

IU m

ay r

efuse

to e

xch

ange

info

rmat

ion o

nly

in

ex

cepti

onal

cir

cum

stan

ces

wh

ere

the

exch

ange

could

be

contr

ary t

o f

undam

enta

l pri

nci

ple

s of

its

nat

ional

law

. T

hose

ex

cepti

ons

shal

l be

spec

ifie

d i

n a

way w

hic

h p

reven

ts m

isuse

of,

and u

ndue

lim

itat

ions

on,

the

free

exch

ange

of

info

rmat

ion f

or

anal

yti

cal

purp

ose

s.

The

UK

FIU

h

as

agre

ed

to

and

adher

es t

o t

he

Egm

ont

Pri

nci

ple

s of

Info

rmat

ion S

har

ing.

The

FIU

wil

l

exch

ange

info

rmat

ion u

nle

ss t

o d

o s

o

would

be

in

bre

ach

of

the

Dat

a

Pro

tect

ion A

ct 1998 or

the

Hum

an

Rig

hts

Act

1998.

A

rtic

le 5

4

54

Info

rmat

ion a

nd d

ocu

men

ts r

ecei

ved

pu

rsuan

t to

Art

icle

s 52 a

nd 5

3 s

hal

l be

use

d f

or

the

acco

mpli

shm

ent

of

the

FIU

's

task

s as

la

id

do

wn

in

this

D

irec

tive.

W

hen

ex

chan

gin

g

info

rmat

ion a

nd d

ocu

men

ts p

urs

uan

t to

Art

icle

s 5

2 a

nd 5

3, th

e tr

ansm

itti

ng F

IU m

ay i

mpose

rest

rict

ions

and c

ondit

ions

for

the

use

of

that

info

rmat

ion.

The

rece

ivin

g F

IU s

hal

l co

mply

wit

h t

hose

res

tric

tions

and c

ondit

ions.

The

UK

FIU

can

car

ry o

ut

enquir

ies

for

inte

llig

ence

pu

rpose

s only

, but

can a

cces

s an

d e

xch

ange

info

rmat

ion

as t

hough

the

info

rmat

ion w

ould

be

use

d

for

a dom

esti

c in

tell

igen

ce

enquir

y.

The

UK

FIU

has

agre

ed t

o

and a

dher

es t

o t

he

Egm

ont

Pri

nci

ple

s

of

Info

rmat

ion S

har

ing,

whic

h c

over

the

han

dli

ng o

f in

form

atio

n r

ecei

ved

.

A

rtic

le 5

5

55.1

M

ember

Sta

tes

shal

l en

sure

that

the

info

rmat

ion e

xch

anged

pu

rsuan

t to

Art

icle

s 52 a

nd 5

3 i

s

use

d o

nly

for

the

pu

rpose

for

whic

h i

t w

as s

ou

ght

or

pro

vid

ed a

nd t

hat

an

y d

isse

min

atio

n o

f

that

info

rmat

ion b

y t

he

rece

ivin

g F

IU t

o a

ny o

ther

auth

ori

ty,

agen

cy o

r dep

artm

ent,

or

any

use

of

this

info

rmat

ion f

or

purp

ose

s beyon

d t

hose

ori

gin

ally

app

roved

, is

mad

e su

bje

ct t

o t

he

pri

or

conse

nt

by t

he

FIU

pro

vid

ing t

he

info

rmat

ion.

The

UK

FIU

h

as

agre

ed

to

and

adher

es t

o t

he

Egm

ont

Pri

nci

ple

s of

Info

rmat

ion S

har

ing.

55.2

M

ember

S

tate

s sh

all

ensu

re

that

th

e re

qu

este

d

FIU

's

pri

or

conse

nt

to

dis

sem

inat

e th

e

info

rmat

ion t

o c

om

pet

ent

auth

ori

ties

is

gra

nte

d p

rom

ptl

y a

nd t

o t

he

larg

est

exte

nt

poss

ible

.

The

reques

ted F

IU s

hal

l not

refu

se i

ts c

onse

nt

to s

uch

dis

sem

inat

ion u

nle

ss t

his

would

fal

l

bey

ond t

he

scope

of

appli

cati

on o

f it

s A

ML

/CF

T p

rovis

ions,

could

lea

d t

o i

mpai

rmen

t of

a

crim

inal

inves

tigat

ion,

would

be

clea

rly d

ispro

port

ionat

e to

the

legit

imat

e in

tere

sts

of

a

nat

ura

l or

legal

per

son o

r th

e M

ember

Sta

te o

f th

e re

ques

ted F

IU,

or

would

oth

erw

ise

not

be

in a

ccord

ance

wit

h f

und

amen

tal

pri

nci

ple

s of

nat

ional

law

of

that

Mem

ber

Sta

te.

An

y s

uch

refu

sal

to g

rant

conse

nt

shal

l be

appro

pri

atel

y e

xpla

ined

.

The

UK

FIU

h

as

agre

ed

to

and

adher

es t

o t

he

Egm

ont

Pri

nci

ple

s of

Info

rmat

ion S

har

ing.

A

rtic

le 5

6

56.1

M

ember

Sta

tes

shal

l re

quir

e th

eir

FIU

s to

use

pro

tect

ed c

han

nel

s of

com

munic

atio

n b

etw

een

them

selv

es a

nd e

nco

ura

ge

the

use

of

the

FIU

.net

or

its

succ

esso

r.

The

UK

FIU

use

s th

e E

gm

ont

secu

re

web

to tra

nsm

it s

ensi

tive

dat

a an

d h

as

acce

ss

to

the

secu

re

FIU

.net

to

com

munic

ate

wit

h E

U M

S F

IUs.

Dat

a P

rote

ctio

n A

ct 1

998

56.2

M

ember

Sta

tes

shal

l en

sure

that

, in

ord

er t

o f

ulf

il t

hei

r ta

sks

as l

aid d

ow

n i

n t

his

Dir

ecti

ve,

thei

r F

IUs

cooper

ate

in t

he

appli

cati

on o

f st

ate-

of-

the-

art

tech

nolo

gie

s in

acc

ord

ance

wit

h

thei

r nat

ional

law

. T

hose

tec

hnolo

gie

s sh

all

allo

w F

IUs

to m

atch

thei

r dat

a w

ith t

hat

of

oth

er

FIU

s in

an a

non

ym

ous

way b

y e

nsu

rin

g f

ull

pro

tect

ion o

f p

erso

nal

dat

a w

ith t

he

aim

of

det

ecti

ng s

ubje

cts

of

the

FIU

's inte

rest

s in

oth

er M

ember

Sta

tes

and iden

tify

ing thei

r pro

ceed

s

and f

unds.

The

UK

FIU

use

s th

e E

gm

ont

secu

re

web

to tra

nsm

it s

ensi

tive

dat

a an

d h

as

acce

ss

to

FIU

.net

to

co

mm

unic

ate

wit

h E

U M

S F

IUs.

A

rtic

le 5

7

57

Dif

fere

nce

s bet

wee

n n

atio

nal

law

def

init

ions

of

tax

cri

mes

shal

l not

imped

e th

e ab

ilit

y o

f

FIU

s to

ex

chan

ge

info

rmat

ion o

r pro

vid

e as

sist

ance

to a

noth

er F

IU,

to t

he

gre

ates

t ex

tent

poss

ible

under

thei

r nat

ional

law

.

The

FIU

has

th

e pow

er

to

shar

e

info

rmat

ion w

ith o

ther

mem

ber

sta

tes

wher

e m

oney lau

nder

ing i

s su

spec

ted

incl

udin

g w

her

e th

e pre

dic

ate

off

ence

would

not

be

an o

ffen

ce i

n t

he

UK

.

See

s.

8 o

f th

e C

rim

e an

d C

ourt

s A

ct

2013

S

EC

TIO

N 4

S

an

ctio

ns

A

rtic

le 5

8

58.1

M

ember

Sta

tes

shal

l en

sure

that

obli

ged

enti

ties

can

be

hel

d l

iable

fo

r bre

ach

es o

f nat

ional

pro

vis

ions

tran

sposi

ng t

his

Dir

ecti

ve

in a

ccord

ance

wit

h t

his

Art

icle

and A

rtic

les

59 t

o 6

1.

An

y r

esult

ing s

anct

ion o

r m

easu

re s

hal

l be

effe

ctiv

e, p

roport

ionat

e an

d d

issu

asiv

e.

Reg

ula

tions

75 t

o 9

1

58.2

W

ithout pre

judic

e to

the

right of

Mem

ber

Sta

tes

to p

rovid

e fo

r an

d im

pose

cri

min

al s

anct

ions,

Mem

ber

Sta

tes

shal

l la

y d

ow

n r

ule

s on a

dm

inis

trat

ive

sanct

ions

and m

easu

res

and e

nsu

re that

thei

r co

mpet

ent au

thori

ties

may im

pose

such

san

ctio

ns

and m

easu

res

wit

h r

espec

t to

bre

aches

of

the

nat

ional

pro

vis

ions

tran

sposi

ng t

his

Dir

ecti

ve,

and s

hal

l en

sure

that

they

are

appli

ed.

Reg

ula

tions

76, 77, 78, 7

9

M

ember

Sta

tes

may d

ecid

e not to

lay d

ow

n r

ule

s fo

r ad

min

istr

ativ

e sa

nct

ions

or

mea

sure

s fo

r

bre

ach

es w

hic

h a

re s

ubje

ct t

o c

rim

inal

san

ctio

ns

in t

hei

r nat

ional

law

. In

that

cas

e, M

ember

Sta

tes

shal

l co

mm

unic

ate

to t

he

Com

mis

sion t

he

rele

van

t cr

imin

al l

aw p

rovis

ions.

Opti

on n

ot

exer

cise

d

58.3

M

ember

Sta

tes

shal

l en

sure

that

wher

e obli

gat

ions

apply

to l

egal

per

sons

in t

he

even

t of

a

bre

ach

of

nat

ional

pro

vis

ions

tran

sposi

ng t

his

Dir

ecti

ve,

san

ctio

ns

and m

easu

res

can

be

appli

ed t

o t

he

mem

ber

s of

the

man

agem

ent

body a

nd t

o o

ther

nat

ura

l p

erso

ns

who u

nder

nat

ional

law

are

res

ponsi

ble

for

the

bre

ach.

Reg

ula

tions

91 a

nd 9

2

58.4

M

ember

Sta

tes

shal

l en

sure

that

the

com

pet

ent

auth

ori

ties

hav

e al

l th

e su

per

vis

ory

an

d

inves

tigat

ory

pow

ers

that

are

nec

essa

ry f

or

the

exer

cise

of

thei

r fu

nct

ions.

Reg

ula

tions

66 t

o 7

4

58.5

C

om

pet

ent

auth

ori

ties

shal

l ex

erci

se t

hei

r pow

ers

to i

mpose

adm

inis

trat

ive

sanct

ions

and

mea

sure

s in

acc

ord

ance

wit

h t

his

Dir

ecti

ve,

and w

ith n

atio

nal

law

, in

an

y o

f th

e fo

llow

ing

ways:

(a

) dir

ectl

y;

Reg

ula

tion 7

6, 77 a

nd 7

8

(b

) in

coll

abora

tion w

ith o

ther

auth

ori

ties

;

Reg

ula

tion 7

6, 77 a

nd 7

8

(c

) under

thei

r re

sponsi

bil

ity b

y d

eleg

atio

n t

o s

uch

oth

er a

uth

ori

ties

;

Reg

ula

tion 7

6, 77 a

nd 7

8

(d

) b

y a

ppli

cati

on t

o t

he

com

pet

ent

judic

ial

auth

ori

ties

.

Reg

ula

tion 8

0

In

the

exer

cise

of

thei

r p

ow

ers

to i

mpose

adm

inis

trat

ive

sanct

ions

and m

easu

res,

com

pet

ent

auth

ori

ties

shal

l co

op

erat

e cl

ose

ly i

n o

rder

to

ensu

re t

hat

those

adm

inis

trat

ive

sanct

ions

or

mea

sure

s pro

duce

the

des

ired

res

ult

s an

d c

oord

inat

e th

eir

acti

on w

hen

dea

ling w

ith c

ross

-

bord

er c

ases

.

Reg

ula

tion 4

9(3

)(b)

and 5

0(1

)

A

rtic

le 5

9

59.1

M

ember

Sta

tes

shal

l en

sure

that

this

Art

icle

appli

es a

t le

ast

to b

reac

hes

on t

he

par

t of

obli

ged

enti

ties

that

are

ser

ious,

rep

eate

d,

syst

emat

ic,

or

a co

mbin

atio

n t

her

eof,

of

the

requir

emen

ts

laid

dow

n i

n:

(a

) A

rtic

les

10 t

o 2

4 (

cust

om

er d

ue

dil

igen

ce);

Reg

ula

tion 7

5,

and S

ched

ule

6,

par

a

7

(b

) A

rtic

les

33, 34 a

nd 3

5 (

susp

icio

us

tran

sact

ion r

eport

ing);

To

be

imple

men

ted

b

y

the

Hom

e

Off

ice

(c

) A

rtic

le 4

0 (

reco

rd-k

eepin

g);

and

Reg

ula

tion 7

5,

and S

ched

ule

6,

par

a

8

(d

) A

rtic

les

45 a

nd 4

6 (

inte

rnal

contr

ols

).

Reg

ula

tion 7

5,

and S

ched

ule

6,

par

a

5

59.2

M

ember

Sta

tes

shal

l en

sure

that

in t

he

case

s re

ferr

ed t

o i

n p

arag

raph 1

, th

e ad

min

istr

ativ

e

sanct

ions

and m

easu

res

that

can

be

appli

ed i

ncl

ud

e at

lea

st t

he

foll

ow

ing:

(a

) a p

ubli

c st

atem

ent

whic

h i

den

tifi

es t

he

nat

ura

l or

legal

per

son a

nd t

he

nat

ure

of

the

bre

ach;

Reg

ula

tion 7

6(2

)(b)

(b

) an o

rder

req

uir

ing t

he

nat

ura

l or

legal

per

son t

o c

ease

the

conduct

and t

o

des

ist

from

rep

etit

ion o

f th

at c

onduct

;

Reg

ula

tion 8

0

(c

) wher

e an

obli

ged

en

tity

is

su

bje

ct to

an

au

thori

sati

on,

wit

hdra

wal

or

susp

ensi

on o

f th

e au

thori

sati

on;

Reg

ula

tion 7

7

(d

) a

tem

pora

ry

ban

ag

ainst

an

y

per

son

dis

char

gin

g

man

ager

ial

resp

onsi

bil

itie

s in

an o

bli

ged

enti

ty,

or

any o

ther

nat

ura

l per

son,

hel

d

resp

onsi

ble

fo

r th

e bre

ach,

from

ex

erci

sin

g

man

ager

ial

funct

ions

in

obli

ged

enti

ties

;

Reg

ula

tion 7

8

(e

) max

imum

adm

inis

trat

ive

pec

unia

ry s

anct

ions

of

at l

east

tw

ice

the

amount

of

the

ben

efit

d

eriv

ed

from

th

e bre

ach

w

her

e th

at

ben

efit

ca

n

be

det

erm

ined

, or

at l

east

EU

R 1

000 0

00.

Reg

ula

tion 7

6(2

)(a)

59.3

M

ember

Sta

tes

shal

l en

sure

that

, by w

ay o

f der

ogat

ion f

rom

par

agra

ph 2

(e),

wher

e th

e obli

ged

enti

ty c

once

rned

is

a cr

edit

inst

ituti

on o

r fi

nan

cial

inst

ituti

on, th

e fo

llow

ing s

anct

ions

can a

lso

be

appli

ed:

(a

) in the

case

of

a le

gal

per

son, m

axim

um

adm

inis

trat

ive

pec

unia

ry s

anct

ions

of

at l

east

EU

R 5

000 0

00 o

r 10 %

of

the

tota

l an

nual

turn

over

acc

ord

ing

to t

he

late

st a

vai

lable

acc

ounts

appro

ved

by t

he

man

agem

ent

bod

y;

wher

e

the

obli

ged

enti

ty i

s a

par

ent

und

erta

kin

g o

r a

subsi

dia

ry o

f a

par

ent

under

takin

g w

hic

h i

s re

quir

ed t

o p

repar

e co

nso

lid

ated

fin

anci

al a

ccounts

in a

ccord

ance

wit

h A

rtic

le 2

2 o

f D

irec

tive

2013/3

4/E

U,

the

rele

van

t to

tal

annual

turn

ov

er s

hal

l be

the

tota

l an

nual

turn

ov

er o

r th

e co

rres

pondin

g

type

of

inco

me

in a

ccord

ance

wit

h t

he

rele

van

t ac

counti

ng D

irec

tives

acco

rdin

g t

o t

he

last

avai

lable

conso

lidat

ed a

ccounts

appro

ved

by t

he

man

agem

ent

bod

y o

f th

e ult

imat

e par

ent

under

takin

g;

Reg

ula

tion

76(2

)(a)

per

mit

s

unli

mit

ed f

ines

(b

)in t

he

case

of

a nat

ura

l per

son,

max

imum

adm

inis

trat

ive

pec

unia

ry s

anct

ions

of

at l

east

EU

R 5

000 0

00, o

r in

the

Mem

ber

Sta

tes

whose

cu

rren

cy is

not th

e eu

ro, t

he

corr

espondin

g

val

ue

in t

he

nat

ional

curr

ency o

n 2

5 J

une

2015.

Reg

ula

tion

76(2

)(a)

per

mit

s

unli

mit

ed f

ines

59.4

M

ember

S

tate

s m

ay

empow

er

com

pet

ent

auth

ori

ties

to

im

pose

ad

dit

ional

ty

pes

of

adm

inis

trat

ive

sanct

ions

in a

ddit

ion t

o t

hose

ref

erre

d t

o i

n p

oin

ts (

a) t

o (

d)

of

par

agra

ph 2

or

to i

mpose

adm

inis

trat

ive

pec

unia

ry s

anct

ions

exce

edin

g t

he

amounts

ref

erre

d t

o i

n p

oin

t (e

)

of

par

agra

ph 2

an

d i

n p

arag

raph 3

.

Reg

ula

tion

76(2

)(a)

per

mit

s

unli

mit

ed f

ines

A

rtic

le 6

0

60.1

M

ember

Sta

tes

shal

l en

sure

that

a d

ecis

ion i

mposi

ng a

n a

dm

inis

trat

ive

san

ctio

n o

r m

easu

re

for

bre

ach o

f th

e nat

ional

pro

vis

ions

tran

sposi

ng t

his

Dir

ecti

ve

agai

nst

whic

h t

her

e is

no

appea

l sh

all

be

publi

shed

by t

he

com

pet

ent

auth

ori

ties

on t

hei

r o

ffic

ial

web

site

im

med

iate

ly

afte

r th

e per

son s

anct

ioned

is

info

rmed

of

that

dec

isio

n. T

he

publi

cati

on s

hal

l in

clude

at l

east

info

rmat

ion o

n t

he

type

and n

ature

of

the

bre

ach a

nd t

he

iden

tity

of

the

per

sons

resp

onsi

ble

.

Mem

ber

S

tate

s sh

all

not

be

obli

ged

to

ap

ply

th

is

subpar

agra

ph

to

dec

isio

ns

imposi

ng

mea

sure

s th

at a

re o

f an

inves

tigat

ory

nat

ure

.

Reg

ula

tion 8

4(4

); 8

5(2

)

W

her

e th

e publi

cati

on o

f th

e id

enti

ty o

f th

e per

sons

resp

onsi

ble

as

refe

rred

to i

n t

he

firs

t

subpar

agra

ph o

r th

e per

sonal

dat

a of

such

per

son

s is

consi

der

ed b

y t

he

com

pet

ent

auth

ori

ty

to b

e dis

pro

port

ionat

e fo

llow

ing a

cas

e-b

y-c

ase

asse

ssm

ent

conduct

ed o

n t

he

pro

port

ional

ity

of

the

publi

cati

on o

f su

ch d

ata,

or

wh

ere

publi

cati

on j

eopar

dis

es t

he

stab

ilit

y o

f fi

nan

cial

mar

ket

s or

an o

n-g

oin

g i

nves

tigat

ion, co

mpet

ent

auth

ori

ties

shal

l:

Reg

ula

tion 8

4(5

), (

6);

85

(4),

(5)

(a

) del

ay t

he

publi

cati

on o

f th

e dec

isio

n t

o i

mpose

an a

dm

inis

trat

ive

sanct

ion

or

mea

sure

unti

l th

e m

om

ent

at w

hic

h t

he

reas

ons

for

not

publi

shin

g i

t

ceas

e to

ex

ist;

Reg

ula

tion 8

4(6

) an

d (

7),

85(5

) an

d

(6)

(b

) publi

sh t

he

dec

isio

n t

o i

mpose

an a

dm

inis

trat

ive

sanct

ion o

r m

easu

re o

n

an a

non

ym

ous

bas

is i

n a

man

ner

in a

ccord

ance

wit

h n

atio

nal

law

, if

such

anon

ym

ous

publi

cati

on e

nsu

res

an e

ffec

tive

pro

tect

ion o

f th

e per

sonal

dat

a co

nce

rned

; in

the

case

of

a dec

isio

n t

o p

ub

lish

an a

dm

inis

trat

ive

sanct

ion

or

mea

sure

on

an

an

on

ym

ous

bas

is,

the

publi

cati

on

of

the

rele

van

t dat

a m

ay b

e po

stponed

for

a re

asonab

le p

erio

d o

f ti

me

if i

t is

fore

seen

that

wit

hin

that

per

iod t

he

reas

ons

for

anon

ym

ous

publi

cati

on

shal

l ce

ase

to e

xis

t;

Reg

ula

tion 8

4(5

), 8

5(4

)

(c)n

ot

publi

sh t

he

dec

isio

n t

o i

mpose

an a

dm

inis

trat

ive

sanct

ion o

r m

easu

re a

t

all

in t

he

even

t th

at t

he

opti

ons

set

out

in p

oin

ts (

a) a

nd (

b)

are

consi

der

ed

insu

ffic

ient

to e

nsu

re:

(i)

that

the

stab

ilit

y o

f fi

nan

cial

mar

ket

s w

ould

not

be

put

in j

eopar

dy;

or

Reg

ula

tion 8

4(8

), 8

5(7

)

Reg

ula

tion 8

4(8

)(a)

; 85

(7)(

a)

(ii)

th

e pro

port

ional

ity o

f th

e publi

cati

on o

f th

e dec

isio

n w

ith r

egar

d t

o

mea

sure

s w

hic

h a

re d

eem

ed t

o b

e of

a m

inor

nat

ure

.

Reg

ula

tion 8

4(8

)(b);

85(7

)(b)

60.2

W

her

e M

ember

Sta

tes

per

mit

publi

cati

on o

f dec

isio

ns

agai

nst

whic

h t

her

e is

an a

pp

eal,

com

pet

ent

auth

ori

ties

sh

all

also

publi

sh,

imm

edia

tely

, on

thei

r off

icia

l w

ebsi

te

such

info

rmat

ion a

nd a

ny s

ub

sequen

t in

form

atio

n o

n t

he

outc

om

e of

such

app

eal.

More

ov

er,

any

dec

isio

n a

nnull

ing a

pre

vio

us

dec

isio

n to im

pose

an

adm

inis

trat

ive

san

ctio

n o

r a

mea

sure

shal

l

also

be

publi

shed

.

Reg

ula

tion 8

4(3

); 8

5(3

)

60.3

C

om

pet

ent

auth

ori

ties

sh

all

ensu

re t

hat

an

y p

ubli

cati

on i

n a

ccord

ance

wit

h t

his

Art

icle

shal

l

rem

ain o

n t

hei

r off

icia

l w

ebsi

te f

or

a p

erio

d o

f fi

ve

yea

rs a

fter

its

publi

cati

on.

How

ever

,

per

sonal

dat

a co

nta

ined

in t

he

publi

cati

on

shal

l o

nly

be

kep

t on t

he

off

icia

l w

ebsi

te o

f th

e

com

pet

ent

auth

ori

ty f

or

the

per

iod w

hic

h i

s nec

essa

ry i

n a

ccord

ance

wit

h t

he

appli

cable

dat

a

pro

tect

ion r

ule

s.

Reg

ula

tion 8

4(9

); 8

5(8

)

60.4

M

ember

Sta

tes

shal

l en

sure

that

when

det

erm

inin

g t

he

type

and l

evel

of

adm

inis

trat

ive

sanct

ions

or

mea

sure

s,

the

com

pet

ent

auth

ori

ties

sh

all

take

into

ac

count

all

rele

van

t

circ

um

stan

ces,

incl

udin

g w

her

e ap

pli

cable

:

Reg

ula

tion 8

1(1

); 8

3(1

)

(a

) th

e gra

vit

y a

nd t

he

dura

tion o

f th

e bre

ach;

Reg

ula

tion 8

1(1

)(a)

; 83

(1)(

a)

(b

) th

e deg

ree

of

resp

onsi

bil

ity o

f th

e n

atura

l or

legal

per

son h

eld r

esponsi

ble

;

Reg

ula

tion 8

1(1

)(b);

83(1

)(b)

(c

) th

e fi

nan

cial

str

ength

of

the

nat

ura

l or

legal

per

son h

eld r

esponsi

ble

, as

indic

ated

fo

r ex

ample

by th

e to

tal

turn

over

of

the

legal

per

son hel

d

resp

onsi

ble

or

the

annu

al i

nco

me

of

the

nat

ura

l per

son h

eld r

esponsi

ble

;

Reg

ula

tion 8

1(1

)(c)

; 83

(1)(

c)

(d

) th

e ben

efit

der

ived

fro

m t

he

bre

ach b

y t

he

nat

ura

l or

legal

per

son h

eld

resp

onsi

ble

, in

sofa

r as

it

can b

e d

eter

min

ed;

Reg

ula

tion 8

1(1

)(d);

83(1

)(d)

(e

) th

e lo

sses

to t

hir

d p

arti

es c

ause

d b

y t

he

bre

ach,

inso

far

as t

hey c

an b

e

det

erm

ined

;

Reg

ula

tion 8

1(1

)(e)

; 83

(1)(

e)

(f

) th

e le

vel

of

cooper

atio

n o

f th

e nat

ura

l or

legal

per

son h

eld r

esponsi

ble

wit

h

the

com

pet

ent

auth

ori

ty;

Reg

ula

tion 8

1(1

)(f)

; 83(1

)(f)

(g

) pre

vio

us

bre

aches

by t

he

nat

ura

l or

legal

per

son h

eld r

esponsi

ble

.

Reg

ula

tion 8

1(1

)(g);

83(1

)(g)

60.5

M

ember

Sta

tes

shal

l en

sure

that

leg

al p

erso

ns

can b

e hel

d l

iable

for

the

bre

ach

es r

efer

red t

o

in A

rtic

le 5

9(1

) co

mm

itte

d f

or

thei

r ben

efit

by a

ny p

erso

n, ac

ting i

ndiv

idual

ly o

r as

par

t of

an

org

an o

f th

at l

egal

per

son

, an

d h

avin

g a

lea

din

g p

osi

tion w

ithin

the

legal

per

son b

ased

on a

ny

of

the

foll

ow

ing:

(a

) pow

er t

o r

epre

sent

the

legal

per

son;

Reg

ula

tion 7

6

(b

) au

thori

ty t

o t

ake

dec

isio

ns

on b

ehal

f of

the

legal

per

son;

or

Reg

ula

tion 7

6

(c

) au

thori

ty t

o e

xer

cise

contr

ol

wit

hin

the

legal

per

son.

Reg

ula

tion 7

6

60.6

Mem

ber

Sta

tes

shal

l al

so e

nsu

re t

hat

leg

al p

erso

ns

can b

e hel

d l

iable

wher

e th

e la

ck o

f

super

vis

ion o

r co

ntr

ol

by a

per

son r

efer

red

to i

n p

arag

raph

5 o

f th

is A

rtic

le h

as m

ade

it

poss

ible

to c

om

mit

one

of

the

bre

aches

ref

erre

d to i

n A

rtic

le 5

9(1

) fo

r th

e ben

efit

of

that

leg

al

per

son b

y a

per

son u

nder

its

auth

ori

ty.

Reg

ula

tion 7

6

A

rtic

le 6

1

61.1

M

ember

S

tate

s sh

all

ensu

re

that

co

mpet

ent

auth

ori

ties

es

tabli

sh

effe

ctiv

e an

d

reli

able

mec

han

ism

s to

en

coura

ge

the

report

ing

to

com

pet

ent

auth

ori

ties

of

pote

nti

al

or

actu

al

bre

ach

es o

f th

e n

atio

nal

pro

vis

ions

tran

sposi

ng t

his

Dir

ecti

ve.

Reg

ula

tion 4

6(2

)(e)

61.2

T

he

mec

han

ism

s re

ferr

ed t

o i

n p

arag

raph 1

sh

all

incl

ude

at l

east

:

(a

) sp

ecif

ic p

roce

du

res

for

the

rece

ipt

of

repo

rts

on bre

aches

an

d th

eir

foll

ow

-up;

Reg

ula

tion 4

6(2

)(d)

and (

e)

(b

) ap

pro

pri

ate

pro

tect

ion

for

emplo

yee

s or

per

sons

in

a co

mpar

able

posi

tion,

of

obli

ged

enti

ties

who r

eport

bre

ach

es c

om

mit

ted w

ithin

the

obli

ged

enti

ty;

Sch

edule

to

th

e P

ubli

c In

tere

st

Dis

closu

re

(Pre

scri

bed

P

erso

ns)

Ord

er (

Nort

her

n I

rela

nd)

1999

Sch

edule

to

P

ubli

c In

tere

st

Dis

closu

re

(Pre

scri

bed

P

erso

ns)

Ord

er 2

014

(c

) ap

pro

pri

ate

pro

tect

ion f

or

the

accu

sed p

erso

n;

Reg

ula

tions

81 t

o 8

5

(d

) pro

tect

ion o

f per

sonal

dat

a co

nce

rnin

g b

oth

the

per

son w

ho r

eport

s th

e

bre

ach

es an

d th

e n

atura

l per

son w

ho is

al

leged

ly re

sponsi

ble

fo

r a

bre

ach,

in

com

pli

ance

w

ith

the

pri

nci

ple

s la

id

dow

n

in

Dir

ecti

ve

95/4

6/E

C;

Reg

ula

tion 41,

the

Dat

a P

rote

ctio

n

Act

1998,

and t

o b

e im

ple

men

ted b

y

the

Hom

e O

ffic

e

(e)

clea

r ru

les

that

ensu

re t

hat

confi

den

tial

ity i

s gu

aran

teed

in

all

cas

es i

n

rela

tion t

o t

he

per

son w

ho r

eport

s th

e bre

ach

es c

om

mit

ted w

ithin

the

obli

ged

en

tity

, unle

ss dis

closu

re is

re

quir

ed b

y nat

ional

la

w in

th

e

conte

xt

of

furt

her

inves

tigat

ions

or

subse

qu

ent

judic

ial

pro

ceed

ings.

Sch

edule

to

th

e P

ubli

c In

tere

st

Dis

closu

re

(Pre

scri

bed

P

erso

ns)

Ord

er (

Nort

her

n I

rela

nd)

1999

Sch

edule

to

P

ubli

c In

tere

st

Dis

closu

re

(Pre

scri

bed

P

erso

ns)

Ord

er 2

014

And t

o b

e im

ple

men

ted b

y t

he

Hom

e

Off

ice

61.3

3. M

ember

Sta

tes

shal

l re

quir

e obli

ged

enti

ties

to h

ave

in p

lace

app

ropri

ate

pro

cedure

s fo

r

thei

r em

plo

yee

s, o

r per

sons

in a

com

par

able

posi

tion,

to r

eport

bre

ach

es i

nte

rnal

ly t

hro

ugh a

spec

ific

, in

dep

end

ent

and a

non

ym

ous

chan

nel

, pro

port

ionat

e to

the

nat

ure

and s

ize

of

the

obli

ged

enti

ty c

on

cern

ed.

Reg

ula

tion 2

1(3

), (

5)

Sch

edule

to

th

e P

ubli

c In

tere

st

Dis

closu

re

(Pre

scri

bed

P

erso

ns)

Ord

er (

Nort

her

n I

rela

nd)

1999

Sch

edule

to

P

ubli

c In

tere

st

Dis

closu

re

(Pre

scri

bed

P

erso

ns)

Ord

er 2

014

A

rtic

le 6

2

62.1

M

ember

S

tate

s sh

all

ensu

re

that

th

eir

com

pet

ent

auth

ori

ties

in

form

th

e E

SA

s of

all

adm

inis

trat

ive

sanct

ions

and m

easu

res

impose

d i

n a

cco

rdan

ce w

ith A

rtic

les

58 a

nd

59 o

n

cred

it i

nst

ituti

ons

and f

inan

cial

inst

ituti

ons,

incl

udin

g o

f an

y a

pp

eal

in r

elat

ion t

her

eto a

nd

the

outc

om

e th

ereo

f.

No t

ransp

osi

tion r

equir

ed

62.2

M

ember

Sta

tes

shal

l en

sure

that

thei

r co

mpet

ent au

thori

ties

, in a

ccord

ance

wit

h thei

r nat

ional

law

, ch

eck th

e ex

iste

nce

of

a re

levan

t co

nvic

tion in

th

e cr

imin

al re

cord

of

the

per

son

conce

rned

. An

y e

xch

ange

of

info

rmat

ion f

or

those

purp

ose

s sh

all be

carr

ied o

ut in

acc

ord

ance

wit

h D

ecis

ion 2

009/3

16/J

HA

and F

ram

ewo

rk D

ecis

ion 2

009/3

15/J

HA

as

imple

men

ted i

n

nat

ional

law

.

To

be

imple

men

ted

b

y

the

Hom

e

Off

ice

62.3

T

he

ES

As

shal

l m

ainta

in a

web

site

wit

h l

inks

to e

ach c

om

pet

ent

auth

ori

ty's

publi

cati

on o

f

adm

inis

trat

ive

sanct

ions

and m

easu

res

impose

d i

n a

ccord

ance

wit

h A

rtic

le 6

0 o

n c

redit

inst

ituti

ons

and f

inan

cial

inst

ituti

ons,

and s

hal

l sh

ow

the

tim

e per

iod f

or

whic

h e

ach M

ember

Sta

te p

ubli

shes

adm

inis

trat

ive

sanct

ions

and m

easu

res.

No t

ransp

osi

tion r

equir

ed

C

HA

PT

ER

VII

F

INA

L P

RO

VIS

ION

S

A

rtic

le 6

3

P

oin

t (d

) of

par

agra

ph 2

of

Art

icle

25 o

f R

egula

tion (

EU

) N

o 6

48/2

012 o

f th

e E

uro

pea

n

Par

liam

ent

and t

he

Coun

cil

(32)

is r

epla

ced b

y t

he

foll

ow

ing:

No t

ransp

osi

tion r

equir

ed

‘(

d)t

he

CC

P i

s es

tabli

shed

or

auth

ori

sed i

n a

thir

d c

ountr

y t

hat

is

not

consi

der

ed,

by t

he

Com

mis

sion in a

ccord

ance

wit

h D

irec

tive

(EU

) 20

15/8

49 o

f th

e E

uro

pea

n P

arli

amen

t an

d

of

the

Counci

l (*

), a

s hav

ing s

trat

egic

def

icie

nci

es i

n i

ts n

atio

nal

anti

-money

lau

nd

erin

g

and c

ounte

r fi

nan

cin

g o

f te

rrori

sm r

egim

e th

at p

ose

s si

gnif

ican

t th

reat

s to

the

finan

cial

syst

em o

f th

e U

nio

n.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 6

4

64.1

T

he

pow

er t

o a

dopt

del

egat

ed a

cts

is c

on

ferr

ed o

n t

he

Com

mis

sion s

ubje

ct t

o t

he

condit

ions

laid

dow

n i

n t

his

Art

icle

.

No t

ransp

osi

tion r

equir

ed

64.2

T

he

pow

er

to

adopt

del

egat

ed

acts

re

ferr

ed

to

in

Art

icle

9

sh

all

be

confe

rred

on

th

e

Com

mis

sion f

or

an i

ndet

erm

inat

e per

iod o

f ti

me

from

25 J

une

2015.

No t

ransp

osi

tion r

equir

ed

64.3

T

he

pow

er t

o a

dopt

del

egat

ed a

cts

refe

rred

to i

n A

rtic

le 9

may b

e re

vok

ed a

t an

y t

ime

by t

he

Euro

pea

n P

arli

amen

t o

r b

y th

e C

ounci

l. A

dec

isio

n to r

evoke

shal

l put an

end

to the

del

egat

ion

of

the

po

wer

spec

ifie

d in that

dec

isio

n. It

shal

l ta

ke

effe

ct o

n the

day f

oll

ow

ing th

e publi

cati

on

of

the

dec

isio

n i

n t

he

Off

icia

l Jo

urn

al

of

the

Euro

pea

n U

nio

n o

r at

a l

ater

dat

e sp

ecif

ied

ther

ein.

It s

hal

l not

affe

ct t

he

val

idit

y o

f an

y d

eleg

ated

act

s al

read

y i

n f

orc

e.

No t

ransp

osi

tion r

equir

ed

64.4

A

s so

on a

s it

adopts

a d

eleg

ated

act

, th

e C

om

mis

sion s

hal

l noti

fy i

t si

mu

ltan

eousl

y t

o t

he

Euro

pea

n P

arli

amen

t an

d t

o t

he

Counci

l.

No t

ransp

osi

tion r

equir

ed

64.5

A

del

egat

ed a

ct a

dopte

d p

urs

uan

t to

Art

icle

9 s

hal

l en

ter

into

fo

rce

only

if

no o

bje

ctio

n h

as

bee

n e

xpre

ssed

eit

her

by the

Euro

pea

n P

arli

amen

t o

r th

e C

ounci

l w

ithin

a p

erio

d o

f one

month

No t

ransp

osi

tion r

equir

ed

of

noti

fica

tion o

f th

at a

ct t

o t

he

Euro

pea

n P

arli

amen

t an

d t

he

Counci

l o

r if

, bef

ore

the

expir

y

of

that

per

iod, th

e E

uro

pea

n P

arli

amen

t an

d t

he

Co

unci

l hav

e both

info

rmed

the

Com

mis

sion

that

they

wil

l not

obje

ct.

That

per

iod s

hal

l be

exte

nded

by o

ne

month

at

the

init

iati

ve

of

the

Euro

pea

n P

arli

amen

t or

of

the

Counci

l.

A

rtic

le 6

5

B

y 2

6 J

une

2019,

the

Com

mis

sion s

hal

l dra

w u

p a

rep

ort

on t

he

imple

men

tati

on o

f th

is

Dir

ecti

ve

and s

ubm

it i

t to

the

Euro

pea

n P

arli

amen

t an

d t

o t

he

Counci

l.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 6

6

D

irec

tives

2005/6

0/E

C a

nd 2

006/7

0/E

C a

re r

epea

led w

ith e

ffec

t fr

om

26 J

une

2017.

No t

ransp

osi

tion r

equir

ed

R

efer

ence

s to

the

repea

led D

irec

tives

sh

all

be

const

rued

as

refe

rence

s to

this

Dir

ecti

ve

and

shal

l be

read

in a

cco

rdan

ce w

ith t

he

corr

elat

ion t

able

set

out

in A

nnex

IV

.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 6

7

67.1

M

ember

Sta

tes

shal

l bri

ng i

nto

forc

e th

e la

ws,

reg

ula

tions

and a

dm

inis

trat

ive

pro

vis

ions

nec

essa

ry

to

com

ply

w

ith

this

D

irec

tive

by

26

June

2017.

They

shal

l im

med

iate

ly

com

munic

ate

the

tex

t of

those

mea

sure

s to

the

Co

mm

issi

on.

Reg

ula

tion 1

W

hen

Mem

ber

Sta

tes

adopt

those

mea

sure

s, t

hey s

hal

l co

nta

in a

ref

eren

ce t

o t

his

Dir

ecti

ve

or

be

acco

mpan

ied

by s

uch

a r

efer

ence

on

the

occ

asio

n o

f th

eir

off

icia

l publi

cati

on.

The

met

hods

of

mak

ing s

uch

ref

eren

ce s

hal

l be

laid

do

wn b

y M

ember

Sta

tes.

Ex

pla

nat

ory

note

to t

he

Reg

ula

tions

67.2

M

ember

Sta

tes

shal

l co

mm

unic

ate

to t

he

Com

mis

sion t

he

tex

t of

the

mai

n p

rovis

ions

of

nat

ional

law

whic

h t

hey a

dopt

in t

he

fiel

d c

over

ed b

y t

his

Dir

ecti

ve.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 6

8

T

his

Dir

ecti

ve

shal

l en

ter

into

forc

e on t

he

twen

tiet

h d

ay f

oll

ow

ing t

hat

of

its

publi

cati

on i

n

the

Off

icia

l Jo

urn

al

of

the

Euro

pea

n U

nio

n.

No t

ransp

osi

tion r

equir

ed

A

rtic

le 6

9

T

his

Dir

ecti

ve

is a

ddre

ssed

to t

he

Mem

ber

Sta

tes.

N

o t

ransp

osi

tion r

equir

ed

AN

NE

X I

The

foll

ow

ing

is

a non

-ex

hau

stiv

e li

st

of

risk

var

iable

s th

at

obli

ged

enti

ties

shal

l co

nsi

der

when

det

erm

inin

g to w

hat

ex

tent to

apply

cust

om

er d

ue

dil

igen

ce m

easu

res

in a

ccord

ance

wit

h A

rtic

le

13(3

):

Reg

ula

tion 2

8(1

3)

(i)

the

purp

ose

of

an a

ccoun

t or

rela

tionsh

ip;

Reg

ula

tion 2

8(1

3)(

a)

(ii)

the

level

of

asse

ts t

o b

e dep

osi

ted b

y a

cust

om

er o

r th

e si

ze o

f

tran

sact

ions

under

taken

;

Reg

ula

tion 2

8(1

3)(

b)

(iii

) th

e re

gula

rity

or

du

rati

on

of

the

busi

nes

s re

lati

onsh

ip.

Reg

ula

tion 2

8(1

3)(

c)

AN

NE

X I

I

The

foll

ow

ing i

s a

non

-ex

hau

stiv

e li

st o

f fa

ctors

and t

ypes

of

evid

ence

of

pote

nti

ally

lo

wer

ris

k r

efer

red t

o i

n A

rtic

le 1

6:

(1) C

ust

om

er r

isk f

acto

rs:

(a) p

ubli

c co

mpan

ies

list

ed o

n a

sto

ck e

xch

ange

and s

ubje

ct t

o

dis

closu

re r

equir

emen

ts (

eith

er b

y s

tock

ex

chan

ge

rule

s or

thro

ugh

law

or

enfo

rcea

ble

m

eans)

, w

hic

h

impose

requir

emen

ts t

o e

nsu

re a

deq

uat

e tr

ansp

aren

cy o

f ben

efic

ial

ow

ner

ship

;

Reg

ula

tion 3

7(3

)(a)

Reg

ula

tion 3

7(3

)(a)

(iv)

(b)p

ubli

c ad

min

istr

atio

ns

or

ente

rpri

ses;

(c) c

ust

om

ers

that

are

res

iden

t in

geo

gra

phic

al a

reas

of

low

er

risk

as

set

out

in p

oin

t (3

);

Reg

ula

tion 3

7(3

)(a)

(i)

Reg

ula

tion 3

7(3

)(a)

(ii)

(2) P

roduct

, se

rvic

e, t

ransa

ctio

n o

r del

iver

y c

han

nel

ris

k f

acto

rs:

(a)

life

insu

rance

poli

cies

for

whic

h t

he

pre

miu

m i

s lo

w;

(b) in

sura

nce

poli

cies

for

pen

sion s

chem

es i

f th

ere

is n

o e

arly

surr

ender

opti

on

and

th

e poli

cy

cannot

be

use

d

as

coll

ater

al;

(c)

a pen

sion,

super

annuat

ion o

r si

mil

ar s

chem

e th

at p

rovid

es

reti

rem

ent

ben

efit

s to

em

plo

yee

s, w

her

e co

ntr

ibuti

ons

are

mad

e b

y w

ay o

f ded

uct

ion f

rom

wag

es,

and t

he

schem

e

rule

s do n

ot

per

mit

the

assi

gnm

ent

of

a m

ember

's i

nte

rest

under

the

sch

eme;

(d) fi

nan

cial

pro

duct

s or

serv

ices

that

pro

vid

e ap

pro

pri

atel

y

def

ined

and l

imit

ed s

ervic

es t

o c

erta

in t

yp

es o

f cu

stom

ers,

so a

s to

incr

ease

acc

ess

for

finan

cial

incl

usi

on p

urp

ose

s;

(e)

pro

duct

s w

her

e th

e ri

sks

of

money

lau

nder

ing a

nd t

erro

rist

finan

cin

g a

re m

anag

ed b

y o

ther

fac

tors

such

as

purs

e li

mit

s

or

tran

spar

ency

of

ow

ner

ship

(e

.g.

cert

ain

typ

es

of

elec

tronic

money);

Reg

ula

tion 3

7(3

)(b)

Reg

ula

tion 3

7(3

)(b)(

i)

Reg

ula

tion 3

7(3

)(b)(

ii)

Reg

ula

tion 3

7(3

)(b)(

iii)

Reg

ula

tion 3

7(3

)(b)(

iv)

Reg

ula

tion 3

7(3

)(b)(

v)

(3) G

eogra

phic

al r

isk f

acto

rs:

(a) M

ember

Sta

tes;

(b) t

hir

d c

ountr

ies

hav

ing e

ffec

tive

AM

L/C

FT

syst

ems;

(c) t

hir

d c

ountr

ies

iden

tifi

ed b

y c

redib

le s

ourc

es a

s hav

ing a

low

lev

el o

f co

rrupti

on o

r oth

er c

rim

inal

act

ivit

y;

Reg

ula

tion 3

7(3

)(c)

Reg

ula

tion 3

7(3

)(c)

(i)

Reg

ula

tion 3

7(3

)(c)

(ii)

Reg

ula

tion 3

7(3

)(c)

(iii

)

(d) t

hir

d c

ountr

ies

whic

h, on t

he

bas

is o

f cr

edib

le s

ourc

es s

uch

as

mutu

al

eval

uat

ions,

det

aile

d

asse

ssm

ent

report

s or

publi

shed

foll

ow

-up r

epo

rts,

hav

e re

quir

emen

ts t

o c

om

bat

money

lau

nder

ing a

nd t

erro

rist

fin

anci

ng c

onsi

sten

t w

ith

the

revis

ed

FA

TF

R

ecom

men

dat

ions

and

effe

ctiv

ely

imple

men

t th

ose

req

uir

emen

ts.

Reg

ula

tion 3

7(3

)(c)

(iv)

AN

NE

X I

II

The

foll

ow

ing i

s a

non

-ex

hau

stiv

e li

st o

f fa

ctors

and t

ypes

of

evid

ence

of

pote

nti

ally

hig

her

ris

k r

efer

red t

o i

n A

rtic

le 1

8(3

):

(1) C

ust

om

er r

isk f

acto

rs:

(a) t

he

busi

nes

s re

lati

onsh

ip

is

conduct

ed

in

unusu

al

circ

um

stan

ces;

(b)c

ust

om

ers

that

are

res

iden

t in

geo

gra

phic

al a

reas

of

hig

her

risk

as

set

out

in p

oin

t (3

);

(c) l

egal

per

sons

or

arra

ngem

ents

th

at

are

per

son

al

asse

t-

hold

ing v

ehic

les;

(d) c

om

pan

ies

that

hav

e no

min

ee sh

areh

old

ers

or

shar

es in

bea

rer

form

;

(e) b

usi

nes

ses

that

are

cas

h-i

nte

nsi

ve;

(f)

the

ow

ner

ship

str

uct

ure

of

the

com

pan

y a

pp

ears

un

usu

al o

r

exce

ssiv

ely co

mple

x giv

en th

e nat

ure

of

the

com

pan

y's

busi

nes

s;

Reg

ula

tion 3

3(6

)(a)

Reg

ula

tion 3

3(6

)(a)

(i)

Reg

ula

tion 3

3(6

)(a)

(ii)

Reg

ula

tion 3

3(6

)(a)

(iii

)

Reg

ula

tion 3

3(6

)(a)

(iv)

Reg

ula

tion 3

3(6

)(a)

(v)

Reg

ula

tion 3

3(6

)(a)

(vi)

(2) P

roduct

, se

rvic

e, t

ransa

ctio

n o

r del

iver

y c

han

nel

ris

k f

acto

rs:

(a) p

rivat

e ban

kin

g;

Reg

ula

tion 3

3(6

)(b)

Reg

ula

tion 3

3(6

)(b)(

i)

(b) p

roduct

s or

tran

sact

ions

that

mig

ht

favou

r an

on

ym

ity;

(c) n

on-f

ace-

to-f

ace

busi

nes

s re

lati

onsh

ips

or

tran

sact

ions,

wit

hout

cert

ain s

afeg

uar

ds,

such

as

elec

tronic

sig

nat

ure

s;

(d) p

aym

ent

rece

ived

fr

om

unknow

n

or

un

asso

ciat

ed

thir

d

par

ties

;

(e) n

ew p

roduct

s an

d n

ew b

usi

nes

s pra

ctic

es,

incl

udin

g n

ew

del

iver

y m

echan

ism

, an

d th

e use

of

new

or

dev

elopin

g

tech

nolo

gie

s fo

r both

new

and p

re-e

xis

ting p

rodu

cts;

Reg

ula

tion 3

3(6

)(b)(

ii)

Reg

ula

tion 3

3(6

)(b)(

iii)

Reg

ula

tion 3

3(6

)(b)(

iv)

Reg

ula

tion 3

3(6

)(b)(

v)

(3) G

eogra

phic

al r

isk f

acto

rs:

(a) w

ithout

pre

judic

e to

A

rtic

le

9,

countr

ies

iden

tifi

ed

by

cred

ible

so

urc

es,

such

as

m

utu

al

eval

uat

ions,

det

aile

d

asse

ssm

ent

report

s or

pu

bli

shed

foll

ow

-up r

eport

s, a

s not

hav

ing e

ffec

tive

AM

L/C

FT

syst

ems;

(b) c

ountr

ies

iden

tifi

ed

by

cred

ible

so

urc

es

as

hav

ing

signif

ican

t le

vel

s of

corr

upti

on o

r oth

er c

rim

inal

act

ivit

y;

(c) c

ountr

ies

subje

ct

to

sanct

ions,

em

bar

gos

or

sim

ilar

mea

sure

s is

sued

by,

for

exam

ple

, th

e U

nio

n o

r th

e U

nit

ed

Nat

ions;

(d) c

ountr

ies

pro

vid

ing

fundin

g

or

support

fo

r te

rro

rist

acti

vit

ies,

or

that

hav

e des

ignat

ed te

rrori

st org

anis

atio

ns

oper

atin

g w

ithin

thei

r co

untr

y.

Reg

ula

tion 3

3(6

)(c)

Reg

ula

tion 3

3(6

)(c)

(i)

Reg

ula

tion 3

3(6

)(c)

(ii)

Reg

ula

tion 3

3(6

)(c)

(iii

)

Reg

ula

tion 3

3(6

)(c)

(iv)

and (

v)

Reg

ula

tion

2015/8

47/E

U o

f th

e E

uro

pea

n P

arl

iam

ent

an

d o

f th

e C

ou

nci

l of

20 M

ay 2

015 o

n i

nfo

rm

ati

on

acc

om

pan

yin

g t

ran

sfer

s of

fun

ds

Art

icle

17

Ad

min

istr

ati

ve

san

cti

on

s an

d m

easu

res

1. W

ithout

pre

judic

e to

the

right

to p

rovid

e fo

r an

d i

mpose

crim

inal

san

ctio

ns,

Mem

ber

Sta

tes

shal

l la

y d

ow

n t

he

rule

s on

adm

inis

trat

ive

sanct

ions

and m

easu

res

appli

cable

to b

reac

hes

of

the

pro

vis

ions

of

this

Reg

ula

tion a

nd s

hal

l ta

ke

all

mea

sure

s

nec

essa

ry to e

nsu

re that

they

are

im

ple

men

ted. T

he

san

ctio

ns

and

mea

sure

s p

rovid

ed

for

shal

l be

effe

ctiv

e,

pro

port

ionat

e an

d

dis

suas

ive

and

shal

l b

e co

nsi

sten

t w

ith

those

la

id

dow

n

in

acco

rdan

ce

wit

h

Chap

ter

VI,

S

ecti

on

4,

of

Dir

ecti

ve

(EU

)

2015/8

49.

Reg

ula

tions

76 t

o 8

0

Mem

ber

S

tate

s m

ay

dec

ide

not

to

lay

do

wn

rule

s on

adm

inis

trat

ive

sanct

ions

or

mea

sure

s fo

r b

reac

h o

f th

e pro

vis

ions

of

this

Reg

ula

tion w

hic

h a

re s

ubje

ct to c

rim

inal

san

ctio

ns

in thei

r

nat

ional

law

. In

that

cas

e, M

ember

Sta

tes

shal

l co

mm

unic

ate

to

the

Com

mis

sion t

he

rele

van

t cr

imin

al l

aw p

rovis

ions.

Opti

on n

ot

exer

cise

d

2. M

ember

Sta

tes

shal

l en

sure

that

wher

e obli

gat

ions

apply

to

pay

men

t se

rvic

es

pro

vid

ers,

in

th

e ev

ent

of

a bre

ach

of

pro

vis

ions

of

this

Reg

ula

tion, sa

nct

ions

or

mea

sure

s ca

n, su

bje

ct

to n

atio

nal

law

, be

appli

ed t

o t

he

mem

ber

s of

the

man

agem

ent

bod

y a

nd t

o a

ny o

ther

nat

ura

l per

son

who, under

nat

ional

law

, is

resp

onsi

ble

for

the

bre

ach.

Reg

ula

tions

91 a

nd 9

2

3. B

y

26

June

2017,

Mem

ber

S

tate

s sh

all

no

tify

th

e ru

les

refe

rred

to i

n p

arag

raph 1

to t

he

Com

mis

sion a

nd t

o t

he

Join

t

Com

mit

tee

of

the

ES

As.

They

shal

l noti

fy t

he

Co

mm

issi

on a

nd

No t

ransp

osi

tion r

equir

ed

the

Join

t C

om

mit

tee

of

the

ES

As

wit

hout

del

ay

of

any

subse

quen

t am

endm

ents

ther

eto.

4.

In a

ccord

ance

wit

h A

rtic

le 5

8(4

) o

f D

irec

tive

(EU

) 2015/8

49,

com

pet

ent

auth

ori

ties

sh

all

hav

e al

l th

e su

per

vis

ory

an

d

inves

tigat

ory

pow

ers

that

are

nec

essa

ry f

or

the

exer

cise

of

thei

r

funct

ions.

In

th

e ex

erci

se

of

thei

r pow

ers

to

impose

adm

inis

trat

ive

sanct

ions

and m

easu

res,

co

mpet

ent

auth

ori

ties

shal

l co

oper

ate

close

ly

to

ensu

re

that

th

ose

ad

min

istr

ativ

e

sanct

ions

or

mea

sure

s p

roduce

the

des

ired

res

ult

s an

d c

oord

inat

e

thei

r ac

tion w

hen

dea

lin

g w

ith c

ross

-bord

er c

ases

.

Reg

ula

tions

66 t

o 7

4

5. M

ember

Sta

tes

shal

l en

sure

that

leg

al p

erso

ns

can b

e h

eld

liab

le f

or

the

bre

aches

ref

erre

d t

o i

n A

rtic

le 1

8 c

om

mit

ted f

or

thei

r ben

efit

by a

ny p

erso

n a

ctin

g i

ndiv

idual

ly o

r as

par

t of

an

org

an o

f th

at l

egal

per

son,

and h

avin

g a

lea

din

g p

osi

tion w

ithin

the

legal

per

son b

ased

on

an

y o

f th

e fo

llow

ing:

Reg

ula

tions

76

(a)

pow

er t

o r

epre

sent

the

legal

per

son;

Reg

ula

tions

76

(b) a

uth

ori

ty t

o t

ake

dec

isio

ns

on b

ehal

f of

the

legal

per

son;

or

Reg

ula

tions

76

(c)

auth

ori

ty t

o e

xer

cise

contr

ol

wit

hin

the

legal

per

son.

Reg

ula

tions

76

6. M

ember

Sta

tes

shal

l al

so e

nsu

re t

hat

leg

al p

erso

ns

can b

e

hel

d l

iable

wher

e th

e la

ck o

f su

per

vis

ion o

r co

ntr

ol

by a

per

son

refe

rred

to i

n p

arag

raph 5

of

this

Art

icle

has

mad

e it

poss

ible

to

com

mit

one

of

the

bre

aches

ref

erre

d t

o i

n A

rtic

le 1

8 f

or

the

ben

efit

of

that

leg

al p

erso

n b

y a

per

son u

nder

its

auth

ori

ty.

Reg

ula

tions

76

7. C

om

pet

ent

auth

ori

ties

shal

l ex

erci

se t

hei

r pow

ers

to i

mpose

adm

inis

trat

ive

sanct

ions

and m

easu

res

in a

ccord

ance

wit

h t

his

Reg

ula

tion i

n a

ny o

f th

e fo

llow

ing w

ays:

(a)

dir

ectl

y;

Reg

ula

tion 7

6, 77, 78

(b)

in c

oll

abora

tion w

ith o

ther

auth

ori

ties

;

Reg

ula

tion 7

6, 77, 78

(c)u

nder

th

eir

resp

onsi

bil

ity

by

del

egat

ion

to

such

oth

er

auth

ori

ties

;

Reg

ula

tion 7

6, 77, 78

(d)

by a

ppli

cati

on t

o t

he

com

pet

ent

judic

ial

auth

ori

ties

.

Reg

ula

tion 8

0

In

the

exer

cise

of

thei

r pow

ers

to

impose

ad

min

istr

ativ

e

sanct

ions

and m

easu

res,

com

pet

ent

auth

ori

ties

shal

l co

oper

ate

close

ly i

n o

rder

to e

nsu

re t

hat

those

adm

inis

trat

ive

sanct

ions

or

mea

sure

s pro

du

ce t

he

des

ired

res

ult

s an

d c

oord

inat

e th

eir

acti

on

when

dea

lin

g w

ith c

ross

-bord

er c

ases

.

FS

MA

, se

ctio

n 3

45A

(1)(

a)

Art

icle

18

Sp

ecif

ic p

rovis

ion

s

Mem

ber

Sta

tes

shal

l en

sure

that

thei

r ad

min

istr

ativ

e sa

nct

ions

and m

easu

res

incl

ude

at l

east

those

lai

d d

ow

n b

y A

rtic

le 5

9(2

)

and (

3)

of

Dir

ecti

ve

(EU

) 2015/8

49 i

n t

he

even

t of

the

foll

ow

ing

bre

ach

es o

f th

is R

egula

tion:

(a)r

epea

ted o

r sy

stem

atic

fai

lure

by a

paym

ent

serv

ice

pro

vid

er

to i

ncl

ude

the

requir

ed i

nfo

rmat

ion o

n t

he

pay

er o

r th

e pay

ee,

in b

reac

h o

f A

rtic

le 4

, 5 o

r 6;

Reg

ula

tion 7

5 a

nd S

ched

ule

6, par

agra

ph 2

(b)r

epea

ted,

syst

emat

ic o

r se

rious

fail

ure

by a

paym

ent

serv

ice

pro

vid

er t

o r

etai

n r

eco

rds,

in b

reac

h o

f A

rtic

le 1

6;

Reg

ula

tion 7

5, an

d S

ched

ule

6, par

agra

ph 2

, 3, 4

(c)f

ailu

re b

y a

paym

ent

serv

ice

pro

vid

er t

o i

mple

men

t ef

fect

ive

risk

-bas

ed p

roce

dure

s, i

n b

reac

h o

f A

rtic

les

8 o

r 1

2;

Reg

ula

tion 7

5, an

d S

ched

ule

6, par

agra

ph 3

, 4

(d)s

erio

us

fail

ure

by a

n i

nte

rmed

iary

paym

ent

serv

ice

pro

vid

er

to c

om

ply

wit

h A

rtic

le 1

1 o

r 12.

Reg

ula

tion 7

5, an

d S

ched

ule

6, par

agra

ph 4

Art

icle

19

Pu

bli

cati

on

of

san

ctio

ns

an

d m

easu

res

In a

ccord

ance

wit

h A

rtic

le 6

0(1

), (

2)

and (

3)

of

Dir

ecti

ve

(EU

)

2015/8

49, th

e co

mp

eten

t au

thori

ties

shal

l publi

sh a

dm

inis

trat

ive

sanct

ions

and

mea

sure

s im

pose

d

in th

e ca

ses

refe

rred

to

in

Art

icle

s 17 an

d 18 of

this

R

egula

tion w

ithout

undue

del

ay,

incl

udin

g i

nfo

rmat

ion o

n t

he

typ

e an

d n

ature

of

the

bre

ach a

nd

the

iden

tity

of

the

per

sons

resp

onsi

ble

for

it,

if n

eces

sary

and

pro

port

ionat

e af

ter

a ca

se-b

y-c

ase

eval

uat

ion.

Reg

ula

tions

84 a

nd 8

5

Art

icle

20

Ap

pli

cati

on

of

san

ctio

ns

an

d m

easu

res

by t

he

com

pete

nt

au

thori

ties

1. W

hen

det

erm

inin

g t

he

typ

e of

adm

inis

trat

ive

sanct

ions

or

mea

sure

s an

d th

e le

vel

of

adm

inis

trat

ive

pec

unia

ry s

anct

ions,

the

com

pet

ent

auth

ori

ties

sh

all

take

into

ac

count

all

rele

van

t

circ

um

stan

ces,

in

cludin

g

those

li

sted

in

A

rtic

le

60(4

) of

Dir

ecti

ve

(EU

) 2015/8

49

.

Reg

ula

tions

81 a

nd 8

3

2. A

s re

gar

ds

adm

inis

trat

ive

sanct

ions

and m

easu

res

impose

d

in a

cco

rdan

ce w

ith t

his

Reg

ula

tion, A

rtic

le 6

2 o

f D

irec

tive

(EU

)

2015/8

49 s

hal

l ap

ply

.

See

Art

icle

62 a

bov

e

Art

icle

21

Rep

ort

ing o

f b

reach

es

1. M

ember

S

tate

s sh

all

esta

bli

sh

effe

ctiv

e m

echan

ism

s to

enco

ura

ge

the

report

ing t

o c

om

pet

ent

auth

ori

ties

of

bre

aches

of

this

Reg

ula

tion.

Reg

ula

tion 6

3(1

)(c)

Those

mec

han

ism

s sh

all

incl

ude

at l

east

those

ref

erre

d t

o i

n

Art

icle

61(2

) o

f D

irec

tive

(EU

) 2015/8

49.

Reg

ula

tions

63(1

)(b)

and

Art

icle

61 a

bove

2. P

aym

ent

serv

ice

pro

vid

ers,

in

co

oper

atio

n

wit

h

the

com

pet

ent

auth

ori

ties

, sh

all

esta

bli

sh

appro

pri

ate

inte

rnal

pro

cedure

s fo

r th

eir

emplo

yee

s, or

per

sons

in a

com

par

able

posi

tion,

to

report

bre

aches

in

tern

ally

th

rou

gh

a se

cure

,

indep

enden

t, s

pec

ific

an

d a

non

ym

ous

chan

nel

, pro

port

ionat

e to

the

nat

ure

and s

ize

of

the

pay

men

t se

rvic

e pro

vid

er c

once

rned

.

Dir

ectl

y a

ppli

cable

: no t

ransp

osi

tion n

eeded

Art

icle

22

Mon

itori

ng

1. M

ember

Sta

tes

shal

l re

quir

e co

mpet

ent au

thori

ties

to m

onit

or

effe

ctiv

ely

and

to

take

the

mea

sure

s n

eces

sary

to

en

sure

com

pli

ance

w

ith

this

R

egula

tion

and

enco

ura

ge,

th

rou

gh

effe

ctiv

e m

ech

anis

ms,

the

report

ing o

f bre

aches

of

the

pro

vis

ions

of

this

Reg

ula

tion t

o c

om

pet

ent

auth

ori

ties

.

Reg

ula

tion 6

3(1

)(a)

2. A

fter

Mem

ber

Sta

tes

hav

e noti

fied

the

rule

s re

ferr

ed t

o i

n

par

agra

ph 1

of

this

Art

icle

to t

he

Com

mis

sion a

nd t

o t

he

Join

t

Com

mit

tee

of

the

ES

As

in a

ccord

ance

wit

h A

rtic

le 1

7(3

), t

he

Com

mis

sion s

hal

l su

bm

it a

rep

ort

to

the

Eu

ropea

n P

arli

amen

t

and

to

the

Counci

l on

the

appli

cati

on

of

Chap

ter

IV,

wit

h

par

ticu

lar

regar

d t

o c

ross

-bord

er c

ases

.

No t

ransp

osi

tion n

eeded

.