What changed between the plenary report and the adopted text

Removed:Article 6 – paragraph 5: 5. Where the person convicted of money laundering, any of its predicate offences or terrorist financing is the beneficial owner of an obliged entity referred to in paragraph 2, Member States shall ensure that such persons are disassociated from any obliged entity, including by granting supervisors the power to request the divestment of the holding by the beneficial owner in an obliged entity

Removed:Article 6 – paragraph 6: 6. For the purposes of this Article, Member States shall ensure that, in accordance with their national law, supervisors or any other authority competent at national level for assessing the appropriateness of persons referred to in paragraphs 1 and 2, check at least the existence of a relevant conviction in the criminal record of the person concerned. Any exchange of information for those purposes shall be carried out in accordance with Framework Decision 2009/315/JHA and Decision 2009/316/JHA as implemented in national law.

Removed:Article 6 – paragraph 6 a (new): 6a. Member States shall ensure that decisions taken by supervisors pursuant to this Article are subject to administrative appeal and to an effective judicial remedy.

Removed:Article 6 – paragraph 6 b (new): 6b. By ... [two years after the date of transposition of this Directive], AMLA shall issue guidelines on the elements to be taken into account by supervisors when assessing whether: / (a) the senior managers and the beneficial owners of obliged entities referred to in paragraph 1 and 2 act with honesty and integrity; / (b) the senior management of obliged entities referred to in paragraph 1 and 2 are of good repute and possess proven knowledge and expertise necessary to carry out their functions. / (c) there are reasonable grounds to suspect that money laundering or terrorist financing is being or has been committed or attempted, or that the risk thereof could increase in connection with that obliged entity. / When drawing up the guidelines referred to in the first subparagraph of this Paragraph, AMLA shall take into account the specificities of each sector in which the obliged entities operate and of previous guidelines issued jointly by the European Securities and Market Authority and the European Banking Authority on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU of the European Parliament and of the Council1a. / 1a Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

Removed:Article 6 – paragraph 6 c (new): 6c. Member States shall ensure that supervisors or any other authority competent at national level for assessing the appropriateness of persons as referred to in paragraphs 1 and 2 of this Article consult the AMLA database of sanctions provided for in Article 44(2).

Removed:Article 7 – paragraph 1 – subparagraph 1: To that end, the Commission shall, by [four years after the entry into force of this Directive], draw up a report identifying, analysing and evaluating those risks at Union level. Thereafter, the Commission shall update its report every three years. The Commission may update parts of the report more frequently, if appropriate.

Removed:Article 7 – paragraph 1 – subparagraph 1 a (new): The report referred to in the first subparagraph shall be made public, except for those parts which contain classified information.

Removed:Article 7 – paragraph 2 – point c: (c) the most widespread means used to launder illicit proceeds, including, where available, those particularly used in transactions between Member States and third countries, independently of the identification of a third country pursuant to Section 2 of Chapter III of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final]

Removed:Article 7 – paragraph 2 – point c a (new): (ca) an assessment of the risks of money laundering and terrorist financing associated with legal persons and legal arrangements, including the exposure to risks deriving from foreign legal persons and legal arrangements;

Removed:Article 7 – paragraph 2 – point d: (d) the risks of non-implementation and evasion of targeted financial sanctions

Removed:Article 7 – paragraph 3: 3. The Commission shall make recommendations to Member States on the measures suitable for addressing the identified risks and deficiencies. Member States shall endeavour to follow those recommendations. In the event that Member States decide not to apply any of the recommendations in their national AML/CFT regimes, they shall notify the Commission thereof and provide a detailed justification stating legitimate reasons for such a decision. The Commission’s recommendations and the Member States’ decisions in response to those recommendations, including the justifications where they decide not to apply any of the recommendations, shall be made public.

Removed:Article 7 – paragraph 4: 4. By .. [3 years after the date of transposition of this Directive], AMLA, in accordance with article 44 of Regulation ... [please insert reference to AMLA Regulation - 2021/0240(COD)], shall issue an opinion addressed to the Commission on the risks of money laundering and terrorist financing affecting the Union. Thereafter, AMLA shall issue an opinion every two years. AMLA may issue opinions or updates of its previous opinions more frequently, where it deems it appropriate to do so. The opinions issued by AMLA shall be made public, except for those parts which contain classified information.

Removed:Article 7 – paragraph 5: 5. In conducting the assessment referred to in paragraph 1, the Commission shall organise the work at Union level, shall take into account the opinions referred to in paragraph 4 and shall involve the Member States' experts in the area of AML/CFT, representatives from national supervisory authorities and FIUs, AMLA and other Union level bodies, and other relevant stakeholders, where appropriate

Removed:Article 7 – paragraph 6: 6. Within two years of the adoption of the report referred to in paragraph 1, and every three years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the actions taken based on the findings of that report

Removed:Article 8 – paragraph 1 – introductory part: 1. Each Member State shall carry out a national risk assessment to identify, assess, understand and mitigate the risks of money laundering and terrorist financing, and the risks of non-implementation and evasion of targeted financial sanctions affecting it. It shall assess risks on a continuous basis, keep that risk assessment up to date and review it at least every three years. Member States may decide to carry out a review of that risk assessment more frequently, where they deem it appropriate to do so. In addition, they may carry out ad hoc sectoral risk assessments depending on the level of risk.

Removed:Article 8 – paragraph 1 – subparagraph -1 (new): Based on the identification of country-specific risks and for good reason, the Commission may require Member States to review their risk assessment earlier than provided for in the first subparagraph in order to reduce the risk of money laundering and terrorist financing in the Union.

Removed:Article 8 – paragraph 1 – subparagraph 1: Each Member State shall also take appropriate steps to identify, assess, understand and mitigate the risks of non-implementation and evasion of targeted financial sanctions

Removed:Article 8 – paragraph 2: 2. Each Member State shall designate an authority or establish a mechanism to coordinate the national response to the risks referred to in paragraph 1. The identity of that authority or the description of the mechanism shall be notified to the Commission, AMLA, Europol and other Member States. AMLA shall keep a repository of the designated authorities or established mechanisms. If a Member State establishes a mechanism, in particular to coordinate responses at regional or local level, efficient and effective coordination shall be ensured between all the authorities involved.

Removed:Article 8 – paragraph 3: 3. In carrying out the national risk assessments referred to in paragraph 1 of this Article, Member States shall take into account the methodology used by the Commission for the report referred to in Article 7(1) and the results of that report.

Removed:Article 8 – paragraph 4 – point a: (a) improve its AML/CFT regime, in particular by identifying any areas where obliged entities are to apply enhanced measures in line with a risk-based approach and, where appropriate, specifying the measures to be taken;

Removed:Article 8 – paragraph 4 – point c: (c) assess the risks of money laundering and terrorist financing associated with each type of legal person and legal arrangement in their territory, taking into account the typical ownership and control structure of different types of legal entities including the number of layers of ownership and the type of legal entity in each layer, and have an understanding of the exposure to risks deriving from foreign legal persons and legal arrangements, in particular those which have a multi-layered control structure involving several jurisdictions;

Removed:Article 8 – paragraph 4 – point c a (new): (ca) identify patterns of money laundering and terrorist financing and assess trends for the associated risks at national or crossborder level;

Removed:Article 8 – paragraph 4 – point d: (d) decide on the allocation and prioritisation of resources to combat money laundering and terrorist financing as well as non-implementation and evasion of targeted financial sanctions;

Removed:Article 8 – paragraph 4 – point f: (f) make appropriate information available promptly to competent authorities and to obliged entities to facilitate the carrying out of their own money laundering and terrorist financing risk assessments as well as the assessment of risks of evasion of targeted financial sanctions referred to in Article 8 of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final].

Removed:Article 8 – paragraph 4 – point f a (new): (fa) assess the performance of supervisors of obliged entities;

Removed:Article 8 – paragraph 4 – point f b (new): (fb) assess the performance of registers and data retrieval systems specified in this Directive and identify weaknesses to be addressed;

Removed:Article 8 – paragraph 4 – subparagraph 1: In the national risk assessment, Member States shall describe the institutional structure and broad procedures of their AML/CFT regime, including, inter alia, the FIU, tax authorities and prosecutors, the level of European and international cooperation with regard to money laundering and terrorist financing, the whistleblower protection mechanisms as well as the allocated human and financial resources.

Removed:Article 8 – paragraph 4 – subparagraph 1 a (new): Member States shall ensure appropriate participation of competent authorities and relevant stakeholders when carrying out their national risk assessment.

Removed:Article 8 – paragraph 5: 5. Member States shall make the results of their national risk assessments, including their updates and reviews, available to the Commission, to AMLA and to the other Member States. Any Member State may provide relevant additional information, where appropriate, to the Member State carrying out the national risk assessment. A summary of the results of the assessment shall be made publicly available. That summary shall not contain classified information and shall in general respect high standards of data protection. The information contained therein shall not name any natural or legal persons.

Removed:Article 8 – paragraph 5 a (new): 5a. The Commission and AMLA shall make recommendations to Member States on the measures suitable for addressing the risk identified in the national risk assessments. In the event that a Member State decides not to apply any of the recommendations in its national AML/CFT regime, it shall notify the Commission thereof and provide a justification for that decision.

Removed:Article 9 – paragraph 2 – point b: (b) data measuring the reporting, investigation and judicial phases of the national AML/CFT regime, including the number of suspicious transaction reports made to the FIU and the value of such transactions, the follow-up given to those reports, the information on cross-border physical transfers of cash submitted to the FIU in accordance with Article 9 of Regulation (EU) 2018/1672 together with the follow-up given to the information submitted and, on an annual basis, the number of cases investigated, the number of persons prosecuted, the number of persons convicted for money laundering or terrorist financing offences, the types of predicate offences identified in accordance with Article 2 of Directive (EU) 2018/1673 of the European Parliament and of the Council45 where such information is available, and the value in euro of property that has been frozen, seized or confiscated;

Removed:Article 9 – paragraph 2 – point c: (c) data identifying the number of suspicious transaction reports disseminated by the FIU to competent authorities, the number and percentage of reports resulting in further investigation, together with the annual report drawn up by FIUs pursuant to Article 21

Removed:Article 9 – paragraph 2 – point h a (new): (ha) the number of discrepancies reported to the central register referred to in Article 10, including measures or sanctions imposed by the entity in charge of the central register, the number of on-site and off-site inspections, types of typical discrepancies and patterns identified in the verification process by the entity in charge of the central register

Removed:Article 9 – paragraph 2 – point h b (new): (hb) the following information regarding the implementation of Article 12: / (i) the number of requests to access beneficial ownership on the basis of the categories laid down in Article 12(2) / (ii) the percentage of requests for access to information which is refused under each category laid down in Article 12(2a) / (iii) a summary of the categories of persons granted access to beneficial ownership information under Article 12(2a), second subparagraph ;

Removed:Article 9 – paragraph 2 – point h c (new): (hc) the information referred to in Article 19(3) of Directive (EU) 2019/1153.

Removed:Article 9 – paragraph 3 – introductory part: 3. Member States shall ensure that the statistics referred to in paragraph 2 are collected and transmitted to the Commission on an annual basis. The statistics referred to in paragraph 2 shall also be transmitted to AMLA

Removed:Article 9 – paragraph 4: 4. By [two years after the date of entry into force of this Directive], AMLA shall adopt an opinion addressed to the Commission on the methodology for the collection of the statistics referred to in paragraph 2, points (a), (c), (d) and (f).

Removed:Article 9 – paragraph 5: 5. By ... [two years and six months after the date of entry into force of this Directive], the Commission shall adopt, by means of implementing acts, the methodology for the collection of the statistics referred to in paragraph 2 and the arrangements for their transmission to the Commission and AMLA. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 54(2).

Removed:Article 9 – paragraph 6: 6. By ... [one year after the date of entry into force of this Directive], the Commission shall publish a first report based on statistics provided by Member States pursuant to Article 44 of Directive (EU) 2015/849. By … [three years after the date of entry into force of this Directive], the Commission shall publish a report summarising and explaining the statistics referred to in paragraph 2 of this Article, based on the data collected in accordance with this Article. Thereafter, Commission shall publish a biennial report summarising and explaining the statistics referred to in paragraph 2, which shall be made publicly available on its website. Those reports shall be submitted to the European Parliament and to the Council.

Removed:Article 10 – paragraph 1 – subparagraph -1 (new): Member States shall also ensure that beneficial ownership information of legal entities incorporated outside the Union or of express trusts or similar legal arrangements administered outside the Union are held in the central register under the conditions laid down in Article 48 of Regulation ... [please insert reference to Anti-money Laundering Regulation - 2021/0239(COD)].

Removed:Article 10 – paragraph 1 – subparagraph 1: The beneficial ownership information contained in the central registers shall be available in machine-readable format and be collected in accordance with the implementing acts referred to in paragraph 4. Each Member State shall ensure that such beneficial ownership information is made available in the official language or languages of that Member State and in English.

Removed:Article 10 – paragraph 1 a (new): 1 a. Member States shall ensure that the information on the current beneficial and the information on the past beneficial owners is available in the central registers for the period set out in paragraph 12.

Removed:Article 10 – paragraph 2: 2. Where there are reasons to doubt the accuracy of the beneficial ownership information held by the central registers, Member States shall ensure that the entities in charge of the central registers are empowered to request from corporate and legal entities, trustees of any express trust and persons holding an equivalent position in a similar legal arrangement, and their legal and beneficial owners, any information and documents necessary to identify and verify their beneficial owners, including proofs of existence and ownership, resolutions of the board of directors and minutes of their meetings, partnership agreements, trust deeds, power of attorney or other contractual agreements and documentation.

Removed:Article 10 – paragraph 3 – point a: (a) a statement by the corporate entity, legal entity or legal arrangement accompanied by a legitimate justification and supporting documents, that there is no beneficial owner or that the beneficial owner(s) could not be identified and verified pursuant to Articles 42 and 43 of Regulation ... [insert reference to AML Regulation - 2021/0239(COD)], and the rules according to which profit or shares are allocated within the corporate or legal entity;

Removed:Article 10 – paragraph 3 – subparagraph 1 (new): Member States shall ensure that the information referred to in the first subparagraph, point (a), is available to FIUs, AMLA, competent authorities, self-regulatory bodies and obliged entities.

Removed:Article 10 – paragraph 4: 4. By ... [one year after the date of entry into force of this Directive] the Commission shall adopt, by means of implementing acts, the format for the submission of beneficial ownership information as referred to in article 44 of Regulation ... [please insert reference to the Anti-Money Laundering Regulation - 2021/0239(COD)] to the central register, including a checklist of minimum requirements for information to be examined by the registrant. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 54(2).

Removed:Article 10 – paragraph 5 – introductory part: 5. Member States shall take the necessary measures to ensure that the beneficial ownership information held in the central registers is adequate, accurate and up-to-date, and shall put in place mechanisms to that effect. For that purpose, Member States shall apply at least the following requirements:

Removed:Article 10 – paragraph 5 – point - a (new): (-a) entities in charge of the central registers shall verify, at the time beneficial ownership information is submitted and on a regular basis thereafter, that such information is adequate, accurate and up to date.

Removed:Article 10 – paragraph 5 – point a: (a) obliged entities shall report to the entity in charge of the central registers any discrepancies they find between the beneficial ownership information available in the central registers and the beneficial ownership information available to them pursuant to Article 18 of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation], and shall transmit to the central register the relevant beneficial ownership information they have gathered.

Removed:Article 10 – paragraph 5 – point b: (b) competent authorities shall report to the entity in charge of the central registers any discrepancies they find between beneficial ownership information available in the central registers and the beneficial ownership information available to them.

Removed:Article 10 – paragraph 5 a (new): 5a. Member States shall ensure that the entities in charge of the central registers verify whether beneficial ownership information held in the registers concerns persons or entities designated in relation to targeted financial sanctions. Such verification shall take place immediately upon the designation in relation to targeted financial sanctions and at regular intervals. The entities in charge of the beneficial ownership registers shall include specific mentions in the registers with regard to information on a corporate entity, legal entity or legal arrangement where: / (a) a corporate entity, legal entity or legal arrangement included in a register is subject to targeted financial sanctions; / (b) a corporate entity, legal entity or legal arrangement included in a register is controlled by a person subject to targeted financial sanctions; / (c) a beneficial owner of a corporate entity, legal entity or legal arrangement is subject to targeted financial sanctions; / The specific mention referred to in the first subparagraph of this paragraph shall remain available to any person or entity granted access under Articles 11 and 12 in the central register until the concerned targeted financial sanctions are removed.

Removed:Article 10 – paragraph 5 b (new): 5b. By ... [four years after the date of entry into force of this Directive] AMLA shall issue guidelines on the methods and procedures to be employed by entities in charge of central registers to verify beneficial ownership information and by obliged entities and competent authorities to identify and report discrepancies regarding beneficial ownership information.

Removed:Article 10 – paragraph 7: 7. Member States shall ensure that the entity in charge of the central registers takes, within 30 working days after the reporting of a discrepancy, appropriate actions to cease the discrepancies and ensure up-to-date information, including amending the information included in the central registers where the entity is able to identify and verify the beneficial ownership information. A specific mention of the fact that there are discrepancies reported shall be included in the central registers until the discrepancy is resolved and be visible to any person or entity granted access under Articles 11 and 12

Removed:Article 10 – paragraph 8: 8. In the case of corporate and other legal entities, and legal arrangements where the trustee is an obliged entity as listed in Article 3, point (3)(a), (b) or (c) of Regulation [please insert reference to - proposal for Anti-Money Laundering Regulation - 2021/0239(COD)], Member States shall ensure that the entity in charge of the central beneficial ownership register is empowered to carry out checks, including on-site investigations at the premises or registered office of the legal entity, at the premises of relevant obliged entities as listed in Article 3, point (3)(a), (b) or (c), of Regulation ... [please insert reference to nti-Money Laundering Regulation - 2021/0239(COD)] in accordance with national law and at the premises of the legal entities’ representatives in the Union, in order to establish the current beneficial ownership of the entity and to verify that the information submitted to the central register is accurate, adequate and up-to-date. The right of the central register to verify such information shall not be restricted, obstructed or precluded in any manner, and the central register shall be empowered to request information from other registers, including in other Member States and third countries, in particular through the establishment of cooperation agreements.

Removed:Article 10 – paragraph 8 a (new): 8a. Member States shall ensure that entities in charge of central registers have at their disposal necessary automated technology to carry out verifications as referred to in paragraphs 5 and 5a. Those verifications shall include, in particular, cross-checking beneficial ownership information with other public and private databases to which they have access under national law for the prevention, detection or investigation of money laundering or terrorist financing, checking supporting documents referred to in paragraph 3, detecting errors and inconsistencies, identifying patterns associated with legal entities being used for illicit purposes and carrying out occasional sample testing using a risk based approach. Those verifications shall be carried out in a way that safeguards fundamental rights, includes human oversight and avoids discriminatory outcomes.

Removed:Article 10 – paragraph 8 b (new): 8b. Member States shall ensure that where a verification as referred to in paragraph 5 or 5a is carried out at the time of submission of beneficial ownership information, and it leads an entity in charge of a central register to conclude that there are inconsistencies or errors in the beneficial ownership information or that the beneficial ownership information otherwise does not fulfil the requirements laid down in paragraph 5, that entity in charge of a central register is able to withhold and suspend the certification of registration until the beneficial owner information provided is in order.

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Removed:Article 10 – paragraph 8 c (new): 8c. Member States shall ensure that where a verification as referred to in paragraph 5 or 5a is carried out after the submission of beneficial ownership information, and it leads an entity in charge of a central register to conclude that there are inconsistencies or errors in the beneficial ownership information or that the beneficial ownership information otherwise does not fulfil the requirements laid down in paragraph 5, national competent authorities ensure that the legal consequence attached to the registration does not follow until the beneficial owner information provided is in order.

Removed:Article 10 – paragraph 9: 9. Member States shall ensure that the entity in charge of the central register is empowered to impose effective, proportionate and dissuasive measures or sanctions for failures to provide the register with accurate, adequate and up-to-date information about their beneficial ownership. Sanctions shall include monetary penalties. Member States shall ensure that in the event of repeated failure to provide up-to-date, accurate and adequate information, national authorities ensure that appropriate sanctions follow. In the event of repeated failures to provide up-to-date, accurate and adequate information, sanctions shall be increased to the level necessary to ensure compliance. In such event, the entity in charge of the central register shall notify the national authorities competent for imposing appropriate sanctions about the repeated failures.

Removed:Article 10 – paragraph 9 a (new): 9a. By ... [two years after entry into force of this Directive], AMLA shall develop draft regulatory technical standards setting out indicators to classify the level of gravity of breaches and criteria for such repeated failures and submit them to the Commission for adoption. The Commission is empowered to supplement this Directive by adopting those regulatory standards in accordance with Articles 38 to 41 of Regulation ... [please insert reference to the AMLA Regulation - 2021/0240(COD)].