What changed between the plenary report and the adopted text

Removed:2. The periodic penalty payment shall be effective and proportionate. The periodic penalty payment shall be imposed on a daily basis until the selected obliged entity or person concerned complies with the relevant decision referred to in paragraph 1.

Removed:3. Notwithstanding paragraph 2, the amount of a periodic penalty payment shall be 3 % of the average daily turnover in the preceding business year or, in the case of natural persons, 2 % of the average daily income in the preceding calendar year. It shall be calculated from the date set in the decision imposing the periodic penalty payment.

Removed:4. Six months after the notification of the Authority´s decision to impose a periodic penalty payment, the Executive Board shall review the periodic penalty payment and decide whether to extend it once.

Removed:Methodology for assessing breaches and imposing sanctions and other administrative measures

Removed:1. When determining the type and level of administrative sanctions or measures, the Authority shall take into account all relevant circumstances, including where applicable:

Removed:(a) the gravity and duration of the breach;

Removed:(b) the degree of responsibility of the natural or legal person held responsible;

Removed:(c) the financial strength of the natural or legal person held responsible, including in light of its total turnover or annual income;

Removed:(d) the benefit derived from the breach by the natural or legal person held responsible, insofar as it can be determined;

Removed:(e) the losses to third parties caused by the breach, insofar as they can be determined;

Removed:(f) the level of cooperation of the natural or legal person held responsible with the competent authority;

Removed:(g) previous breaches by the natural or legal person held responsible;

Removed:(h) repeated similar breaches by the natural or legal person held responsible.

Removed:2. By ... [2 years after the date of entry into force of this Regulation], the Authority shall develop draft regulatory technical standards and submit them to the Commission for adoption. Those draft regulatory technical standards shall define indicators to classify the level of gravity of breaches and criteria to be taken into account when setting the level of administrative sanctions or taking administrative measures pursuant to this Section and the consequences in the event of repeated breaches. Those draft regulatory technical standards shall also include ranges of pecuniary sanctions relative to the turnover of the entity in breach that shall be applied in accordance with the indicators to classify the level of gravity of the breach as references for effective, proportionate and dissuasive sanctions, including in cases of repeated breaches.

Removed:3. The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in paragraph 2 of this Article in accordance with Articles 38 to 41.

Removed:Hearing of persons subject to proceedings

Removed:1. Before taking any decision imposing an administrative pecuniary sanction or periodic penalty payment under Articles 21 and 22, the Executive Board shall give the persons subject to the proceedings the opportunity to be heard on Authority’s findings. The Executive Board shall base its decisions only on findings on which the persons subject to the proceedings have had the opportunity to comment.

Removed:2. The rights of defence of the persons subject to the proceedings shall be fully respected during the proceedings. They shall be entitled to have access to the Authority’s file, subject to the legitimate interest of other persons in the protection of their business secrets. The right of access to the file shall not extend to confidential information or internal preparatory documents of the Authority.

Removed:Disclosure, nature, enforcement and allocation of administrative pecuniary sanctions and periodic penalty payments

Removed:1. The Authority shall disclose to the public every administrative pecuniary sanction and periodic penalty payment that has been imposed on a selected obliged entity pursuant to Articles 21 and 22, as well as the administrative measures that have been imposed on a selected obliged entity pursuant to Article 20(2), point d, after the person sanctioned is informed of that decision and the decision is no longer subject to internal review. The publication shall include at least information on the type and nature of the breach and the identity of the selected obliged entities responsible.

Removed:The disclosed information shall at least be available on the website of the Authority.

Removed:1a. The Authority shall transmit without delay, on a confidential basis, to at least the European Parliament, the Council and the Commission, all relevant information on administrative measures that have been imposed on a selected obliged entity pursuant to Article 20. The shared information shall include at least the type and nature of the breach and the identity of the selected obliged entities responsible.

Removed:2. Administrative pecuniary sanctions and periodic penalty payments imposed pursuant to Articles 21 and 22 shall be enforceable.

Removed:Enforcement shall be governed by the rules of civil procedure in force in the State in the territory of which it is carried out. The order for its enforcement shall be appended to the decision without other formality than verification of the authenticity of the decision by the authority which the government of each Member State shall designate for that purpose and shall make known to the Authority and to the Court of Justice of the European Union.

Removed:When those formalities have been completed on application by the party concerned, the latter may proceed to enforcement in accordance with national law, by bringing the matter directly before the competent body.

Removed:Enforcement may be suspended only by a decision of the Court of Justice of the European Union. However, the courts of the Member State concerned shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner.

Removed:3. The amounts of the fines and periodic penalty payments shall be allocated to the general budget of the European Union.

Removed:Procedural rules for taking supervisory measures and imposing administrative pecuniary sanctions

Removed:1. Where, in carrying out its duties under this Regulation, the Authority finds that there are serious indications of the possible existence of facts liable to constitute one or more of the breaches listed in Annex II, the Authority shall appoint an independent investigatory team within the Authority to investigate the matter. The investigatory team shall not be involved or have been involved in the direct supervision of the selected obliged entity concerned and shall perform their functions independently from the Authority’s Executive Board. The Authority shall develop internal procedures to determine the rules governing the selection of the members of the independent investigatory teams, in particular with regard to the qualifications, expert knowledge, professional experience and guarantee of indepedence expected of them.

Removed:2. The investigatory team shall investigate the alleged breaches, taking into account any comments submitted by the persons subject to investigation, and shall submit a complete file with their findings to the Authority’s Executive Board.

Removed:In order to carry out their tasks, the investigatory team may exercise the power to require information in accordance with Article 16 and to conduct investigations and on-site inspections in accordance with Articles 17 and 18.

Removed:Where carrying out their tasks, the investigatory team shall have access to all documents and information gathered by the joint supervisory team in its supervisory activities.

Removed:3. Upon completion of their investigation and before submitting the file with their findings to Authority’s Executive Board, the investigatory team shall give the persons subject to investigation the opportunity to be heard on the matters being investigated. The investigatory team shall base their findings only on facts on which the persons subject to investigation have had the opportunity to comment.

Removed:The rights of defence of the persons concerned shall be fully respected during investigations under this Article.

Removed:4. When submitting the file with their findings to the Authority’s Executive Board, the investigatory team shall notify that fact to the persons subject to investigation. The persons subject to investigation shall be entitled to have access to the file, subject to the legitimate interest of other persons in the protection of their business secrets. The right of access to the file shall not extend to confidential information affecting third parties.

Removed:5. On the basis of the file containing the investigatory team’s findings and, when requested by the persons concerned, after having heard the persons subject to investigation in accordance with Article 23, the Executive Board shall decide if one or more of the breaches listed in Annex II have been committed by the persons who have been subject to investigation, and in such case, shall take a supervisory measure in accordance with Article 20 and impose an administrative pecuniary sanction in accordance with Article 21.

Removed:6. The investigatory team shall not participate in the deliberations of the Executive Board or in any other way intervene in the decision-making process of the Executive Board.

Removed:7. The Commission shall adopt further rules of procedure for the exercise of the power to impose administrative pecuniary sanctions or periodic penalty payments, including provisions on rights of defence, temporal provisions, and the collection of administrative pecuniary sanctions or periodic penalty payments, and shall adopt detailed rules on the limitation periods for the imposition and enforcement of penalties.

Removed:The rules referred to in the first subparagraph shall be adopted by means of delegated acts in accordance with Article 85.

Removed:8. The Authority shall refer matters for criminal prosecution to the relevant national authorities where, in carrying out its duties under this Regulation, it finds that there are serious indications of the possible existence of facts liable to constitute criminal offences. The information communicated to the relevant national authorities shall also be transmitted to Europol in cases where two or more Member States are involved in the facts liable to constitute criminal offences. The Authority shall also transmit the information to the European Public Prosecutor’s Office where such information concerns offences in respect of which the European Public Prosecutor’s Office exercises or is permitted to exercise competence in accordance with Council Regulation (EU) 2017/1939. In addition, the Authority shall refrain from imposing administrative pecuniary sanctions or periodic penalty payments where a prior acquittal or conviction arising from identical facts, or from facts which are substantially the same, has acquired the force of res judicata as the result of criminal proceedings under national law.

Removed:Review by the Court of Justice of the European Union

Removed:The Court of Justice of the European Union shall have unlimited jurisdiction to review decisions of the Authority imposing an administrative pecuniary sanction or a periodic penalty payment. It may annul, reduce or increase the fine or periodic penalty payment imposed.

Removed:Language arrangements in direct supervision

Removed:1. The Authority and the financial supervisors shall adopt arrangements for their communication within the AML/CFT supervisory system, including the language(s) to be used.

Removed:2. Any document which a selected obliged entity or any other natural or legal person individually subject to the Authority’s supervisory procedures submits to the Authority may be drafted in any of the official languages of the Union, chosen by the selected obliged entity or natural or legal person concerned.

Removed:3. The Authority, selected obliged entities and any other legal or natural person individually subject to the Authority’s supervisory procedures may agree to exclusively use one of the official languages of the Union in their written communication, including with regard to the Authority’s supervisory decisions.

Removed:4. The revocation of such agreement on the use of one language shall only affect the aspects of the Authority’s supervisory procedure which have not yet been carried out.

Removed:5. Where participants in an oral hearing request to be heard in an official language of the Union other than the language of the Authority’s supervisory procedure, sufficient advance notice of this requirement shall be given to the Authority so that it can make the necessary arrangements.

Removed:INDIRECT SUPERVISION OF NON-SELECTED OBLIGED ENTITIES

Removed:Assessments of the state of supervisory convergence

Removed:1. The Authority shall perform periodic assessments of some or all of the activities of one, several, or all financial supervisors, including their tools and resources. As part of each assessment, the Authority shall assess the extent to which a financial supervisor monitors effectively, and takes the necessary steps to ensure, consistent high level supervisory standards and practices, and effective application of the legislative acts referred to in Article 1(2), as well as compliance by the obliged entities it supervises with applicable Union law. To that end, the Authority shall develop methods to allow for a consistent assessment and comparison between the financial supervisors reviewed. The assessments shall include a review of the application of the AML/CFT supervisory methodology developed pursuant to Article 8, and shall cover all financial supervisors in a single assessment cycle. The length of each assessment cycle shall be determined by the Authority and shall not exceed seven years. At the end of each assessment cycle, the Authority shall present its findings to the European Parliament and the Council.

Removed:2. The assessments shall be carried out by the staff of the Authority with voluntary involvement of the staff of financial supervisors that are not subject to review, upon agreement on such involvement by the Executive Board. The assessments may take due account of the information set out in the central AML/CFT database established pursuant to Article 11, as well as all the relevant evaluations, assessments or reports drawn up by international organisations and intergovernmental bodies with competence in the field of preventing money laundering and terrorist financing.

Removed:3. The Authority shall produce a report setting out the results of each assessment. ▐ The Authority shall share the draft report in a timely manner with the financial supervisor subject to review. Within a deadline determined by the Authority, the financial supervisor subject to review shall submit comments to the draft report. The final report shall be adopted by the Executive Board, taking into account the observations of the General Board in supervisory composition and shared in a timely manner with the financial supervisor subject to review. The Executive Board shall, in particular, ensure consistency between its reports and in the application of the assessment’s methodology. The report shall explain and indicate any specific follow-up measures required to be taken by the financial supervisor or financial supervisors subject to the assessment that are deemed appropriate, proportionate and necessary as a result of the assessment. The follow-up measures may be adopted in the form of guidelines and recommendations pursuant to Article 43 including recommendations addressed to all or several financial supervisors or to any specific financial supervisor, as appropriate.

Removed:4. Financial supervisors shall make every effort to comply with the specific follow-up measures addressed to them as a result of the assessment. Financial supervisors shall provide regular updates to the Authority on the type of measures they have implemented in response to the report referred to in paragraph 3.

Removed:4a. Where a financial supervisor does not implement the specific follow-up measures addressed to it as a result of the assessment, the Authority shall take the necessary steps in accordance with Article 10. Where the Authority deems implementation of the follow-up measures to be inadequate or insufficient, it may exercise the powers conferred by Article 30(2) or launch an investigation of an alleged breach or non-application of Union law by the reviewed financial supervisor in accordance with Article 30c.

Removed:Coordination and facilitation of work of the AML/CFT supervisory colleges

Removed:1. The Authority shall ensure, within the scope of its powers and without prejudice to the powers of the relevant financial supervisors pursuant to Article 36 [OP please insert the next number to the AMLD, COM(2021)423], that AML/CFT supervisory colleges are established and functioning consistently for non-selected obliged entities operating in several Member States in accordance with Article 36 [OP please insert the next number to the AMLD, COM(2021)423]. To that end, the Authority shall:

Removed:(a) liaise with the relevant financial supervisors to ensure the establishment of colleges which have not been established although the relevant conditions for their establishment set out in Article 36 [OP please insert the next number to the AMLD, COM(2021)423] are met;

Removed:(b) assist in the organisation of college meetings, where requested by the relevant financial supervisors or convene a college meeting at its own discretion where it deems it necessary;

Removed:(c) assist in the organisation of joint supervisory plans and joint examinations;