What changed between the plenary report and the adopted text

Removed:Article 15 – paragraph 3 a (new): 3a. By way of derogation from paragraph 1, based on an appropriate risk assessment which demonstrates a low risk, a supervisor may allow obliged entities not to apply certain customer due diligence measures with respect to electronic money that can be used only in a limited way, where all of the following risk-mitigating conditions are met: / a) the maximum amount stored does not exceed EUR 150; / b) the payment instruments can be used exclusively to purchase, either in store or online, goods or services in a single Member State, from the issuer, or within a network of service providers under direct commercial agreement with a professional issuer; The payment instruments referred to in point b) of the first subparagraph shall not be linked to a bank account, shall not allow for balance top-ups and shall not exchangeable for cash.

Removed:Article 15 – paragraph 4

Removed:Amendment: 4. In the case of credit institutions, the performance of customer due diligence shall also take place, where necessary under the oversight of supervisors, at the moment that the institution has been determined failing or likely to fail pursuant to Article 32(1) of Directive 2014/59/EU of the European Parliament and of the Council52 or when the deposits are unavailable in accordance with Article 2(1)(8) of Directive 2014/49/EU of the European Parliament and of the Council53 . Supervisors shall decide on the intensity and scope of such customer due diligence measures having regard to the specific circumstances of the credit institution.

Removed:Article 15 – paragraph 5 – point b a (new): (ba) the criteria to be taken into account for identifying occasional transactions, including those involving crypto-assets;

Removed:Article 15 – paragraph 5 – point b b (new): (bb) the criteria to be taken into account to identify business relationships;

Removed:Article 16 – paragraph 1 – point b a (new): (ba) identify and record the identity of nominee shareholders and nominee directors of a corporate or other legal entity and identify their status as such, where applicable;

Removed:Article 16 – paragraph 1 – point c a (new): (ca) verify whether the customer or the beneficial owner are subject to targeted financial sanctions relating to terrorism and terrorism financing and proliferation financing, and to other applicable Union targeted financial sanctions;

Removed:Article 16 – paragraph 2 a (new): 2a. Without prejudice to any other measures required to comply with the obligation to apply targeted financial sanctions, for credit and financial institutions the measures laid down in paragraph 1, point (ca), shall include the regular screening of the customer’s identity as well as the beneficial owner’s identity against the relevant sanctions lists of designated persons in order to verify that the customer is not a designated individual, entity or group subject to targeted financial sanctions.

Removed:Article 16 – paragraph 3: 3. By … [two years after the date of application of this Regulation], AMLA, after consulting Europol and the European Supervisory Authorities (ESAs) shall issue guidelines on:

Removed:Article 16 – paragraph 3 – point a (new): (a) the risk variables and risk factors to be taken into account by obliged entities when entering into business relationships or carrying out occasional transactions;

Removed:Article 16 – paragraph 3 – point b (new): (b) measures to be applied by obliged entities for assessing whether the customer or the beneficial owner is subject to targeted financial sanctions including how to identify entities controlled by persons subject to targeted financial sanctions.

Removed:Article 17 – paragraph 1 – introductory part: 1. Where an obliged entity is unable to comply with the customer due diligence measures laid down in Article 16(1), it shall not carry out a transaction or establish a business relationship, and shall terminate the business relationship and consider filing a suspicious transaction report to the FIU in relation to the customer in accordance with Article 50. Where there is a suspicion of money laundering or terrorist financing, the obliged entity shall file a suspicious transaction report to the FIU.

Removed:Article 17 – paragraph 1 – subparagraph 1: Paragraph 1 shall not apply to notaries, lawyers and other independent legal professionals, auditors, external accountants and tax advisors, to the strict extent that those persons:

Removed:Article 17 – paragraph 1 – subparagraph 1 – point a (new): (a) ascertain the legal position of their client, except where the legal advice, is provided for the purpose of money laundering, or terrorist financing, or where those persons know or have a have a well-grounded suspicion that the client is seeking legal advice for the purposes of money laundering or terrorist financing or for the purposes of applying for residence rights or citizenship through investment schemes, and the advice is not sought in relation to judicial proceedings; or

Removed:Article 17 – paragraph 1 – subparagraph 1 – point b (new): (b) perform the task of defending or representing that client in, or concerning, judicial proceedings, including providing advice on instituting or avoiding such proceedings.

Removed:Article 18 – title: Identification and verification of the customer’s identity and the beneficial owner’s identity

Removed:Article 18 – paragraph 1 – point a – point iv: (iv) the usual place of residence or, if there is no fixed residential address with legitimate residence in the Union, the postal address at which the natural person can be reached and, where relevant for the purposes of customer due diligence, possible, the occupation, profession, or employment status and the tax identification number;

Removed:Article 18 – paragraph 1 – point b – point iii: (iii) the names of the legal representatives as well as, where available, the registration number, the tax identification number and the Legal Entity Identifier. On a risk sensitive basis, obliged entities shall also consider the need to verify that the legal entity has activities on the basis of accounting documents for the latest financial year or other relevant information;

Removed:Article 18 – paragraph 1 – point b – point iii a (new): (iiia) where a legal entity is established in more than one jurisdiction, the Legal Entity Identifier;

Removed:Article 18 – paragraph 2 – subparagraph 1: Where, after having exhausted all possible means of identification pursuant to the first subparagraph, no natural person is identified as beneficial owner, or where there are doubts that the person(s) identified is/are the beneficial owner(s), obliged entities shall record that no beneficial owner is identified and identify the natural person(s) holding the position(s) of senior managing official(s) in the corporate or other legal entity and shall verify their identity. Obliged entities shall keep records of the actions taken as well as of the difficulties encountered during the identification process, which led to resorting to the identification of a senior managing official.

Removed:Article 18 – paragraph 4 – introductory part: 4. Obliged entities shall obtain the information, documents and data necessary for the verification of the customer through either of the following:

Removed:Article 18 – paragraph 4 – point a: (a) the submission of the identity document, passport or equivalent and, where relevant, the acquisition of information from reliable and independent sources, whether accessed directly or provided by the customer, via reliable and trustworthy means, either physically or electronically, whereby the extent of the consultation for the verification shall be commensurate to the risk;

Removed:Article 18 – paragraph 4 – point b: (b) the use of electronic identification means and relevant trust services as set out in Regulation (EU) 910/2014 of the European Parliament and of the Council, in a reliable and trustworthy form via secure authentication processes, where appropriate, or other secure remote or electronic identification procedures regulated, recognised, approved or accepted by competent authorities, provided that the level of security designated is at least 'high' or equivalent;

Removed:Article 18 – paragraph 4 – point b a (new): (ba) where applicable, the submission of proof of registration in the central register referred to in Article 10 of Directive [please insert reference – proposal for 6th Anti-Money Laundering Directive - COM/2021/423 final] for customers who are legal entities incorporated outside the Union, in accordance with Article 48 of this Regulation. / Where a customer is a legal entity or a trustee or person in equivalent position acting on behalf of the legal arrangement, obliged entities shall take appropriate measures to verify the identity of the beneficial owner(s) of a legal entity or legal arrangement, including, where possible, on the basis of identity documents or by means of electronic identification, in order to know who the beneficial owner is and understand the ownership and control structure of the legal entity or legal arrangement.

Removed:Article 18 – paragraph 4 – subparagraph 1: For the purposes of verifying the information on the beneficial owner(s), obliged entities shall also consult (531, 532) the central registers referred to in Article 10 of Directive (EU) .../... [please insert reference – proposal for 6th Anti-Money Laundering Directive - COM/2021/423 final], irrespective of the Member State of the central register in which the beneficial ownership information is held. Where appropriate, and on a risk sensitive basis, obliged entities shall also consult additional information from the customer or from reliable and independent sources, in particular where the information in central registers does not match the information available to them under Article 18, where they have doubts as to the accuracy of the information or where there is a higher risk of money laundering or terrorist financing. / Obliged entities shall determine the extent of the additional information to be consulted on a risk basis, having regard to the risks posed by the transaction or the business relationship and the beneficial owner, or the unusual or complex nature of the ownership structures given the nature of the company’s business. / Obliged entities shall report to the entity in charge of the central registers any discrepancies they find between the beneficial ownership information available therein and the beneficial ownership information available to them pursuant to this Article. National law pertaining to banking secrecy and confidentiality shall not hinder compli…

Removed:Article 19 – paragraph 1: By way of derogation from the first subparagraph, obliged entities other than credit and financial institutions involved in real estate transactions shall carry out verification of the customer identity, whether the buyer or seller or both, at the point that there is a formal offer.

Removed:Article 21 – paragraph 1: 1. Obliged entities shall conduct ongoing monitoring of the business relationship, including transactions undertaken by the customer throughout the course of that relationship, to control that those transactions are consistent with the obliged entity’s knowledge of the customer, the customer’s business activity and risk profile, and where necessary, with the information about the origin and destination of the funds and to detect those transactions that shall be made subject to a more thorough analysis pursuant to Article 50.

Removed:Article 21 – paragraph 2 – subparagraph 1: The frequency of updating customer information pursuant to the first sub-paragraph shall be based on the risk posed by the business relationship. The frequency of updating of customer information shall be established on a risk sensitive basis, particularly taking into account changes of relevant circumstances and shall in any case not exceed five years. In case of high-risk business relationships customer information shall be updated at least every two years.

Removed:Article 21 a (new): Article 21a / Timing of the assessment of whether the customer and the beneficial owner is subject to targeted financial sanctions / 1. Obliged entities shall assess whether the customer or the beneficial owner is subject to targeted financial sanctions when verifying the identity of the customer and the beneficial owner pursuant to Article 19. / 2. In addition to the requirements set out in paragraph 1, and without prejudice to any other measures required to comply with the obligation to apply targeted financial sanctions, credit and financial institutions shall screen the identity of their existing customers or beneficial owners against the relevant Union sanctions lists of designated persons on a regular basis, and each time targeted financial sanctions are adopted by the Union. / 3. In addition to the requirements set out in paragraph 1 and without prejudice to any other measures provided for by Union law relating to targeted financial sanctions, obliged entities other than credit and financial institutions shall assess on a regular basis whether any existing customer or beneficial owner is subject to targeted financial sanctions. / 4. Where an obliged entity identifies, when performing its customer due diligence, that a customer or beneficial owner is subject to targeted financial sanctions, it shall immediately notify the competent authority accordingly. / 5. By … [two years after the entry into force of this Regulation], AMLA shall issue guidelines on the measures to b…

Removed:Article 22 – paragraph 1 – point b a (new): (ba) the type of exemptions that may apply to certain customer due diligence measures with respect to electronic money, on the basis of an appropriate risk assessment which demonstrates a low risk;

Removed:Article 22 – paragraph 1 – point c: (c) the reliable and independent sources of information that may be used to verify the identification data of natural or legal persons for the purposes of Article 18(4) in addition to minimum requirements to be complied with and necessary steps to be taken by obliged entities where discrepancies are found;

Removed:Article 22 – paragraph 2 – point c a (new): (ca) the residual risk, taking into account a proper risk assessment, the risk mitigating measures put in place by the obliged entities, including innovation and technical developments to detect and prevent suspicious transactions.

Removed:Article 22 a (new): Article 22a / Special provisions regarding online gambling / 1. Gambling services, that are provided at a distance, by electronic means or any other technology for facilitating communication, shall be subject to this Article. / 2. Providers of gambling services shall ensure that transfers from players to gambling accounts are made only from an account held at a credit or financial institution referred to in Article 3 paragraph 1 and 2. / 3. A provider of gambling services shall refund a player only by executing a payment transaction within the meaning of Article 4, point (5), of Directive (EU) 2015/2366 to a payment account set up in the name of that player with a payment service provider as referred to in Article 1, point (1)(a) and (d), of that Directive. / 4. In addition to the circumstances referred to in Article 15(3) providers of gambling services referred to in paragraph 1 shall perform customer due diligence in the context of a business relationship at the opening of a gambling account

Removed:Article 23 – paragraph 2 – subparagraph 1: Those delegated acts shall be adopted within one month of the publication of a public statement or a compliance document concerning the third country by international organisations and standard setters, after the Commission has ascertained that the criteria in point (a), (b) or (c) are met.

Removed:Article 23 – paragraph 3: 3. For the purposes of paragraph 2, the Commission shall take into account calls for the application of enhanced due diligence measures and additional mitigating measures (countermeasures) by international organisations and standard setters with competence in the field of preventing money laundering and combating terrorist financing, as well as relevant evaluations, assessments, reports or public statements drawn up by them. For the purposes of establishing whether a third country has significant strategic deficiencies in its national AML/CFT regime, the Commission shall also consider, where appropriate, any relevant assessments by AMLA or other Union institutions, bodies and agencies, competent authorities, civil society organisations, and academia. The Commission shall make its assessments of high-risk third countries publicly available.

Removed:Article 23 – paragraph 6: 6. The Commission shall review the delegated acts referred to in paragraph 2 on a regular basis, within one month of any relevant change in the assessment by international organisations and standard setters, and at least every two years to ensure that the specific countermeasures identified pursuant to paragraph 5 take account of the changes in the AML/CFT framework of the third country and are proportionate and adequate to the risks.

Removed:Article 24 – paragraph 3: 3. The Commission, when drawing up the delegated acts referred to in paragraph 2 shall take into account information on jurisdictions under increased monitoring by international organisations and standard setters with competence in the field of preventing money laundering and combating terrorist financing, as well as relevant evaluations, assessments, reports or public statements drawn up by them. The Commission shall also consider, where appropriate, any relevant assessments by AMLA or other Union institutions, bodies and agencies, competent authorities, civil society organisations, and academia. The Commission shall make its assessments of high risk third countries publicly available.

Removed:Article 24 – paragraph 5: 5. The Commission shall review the delegated acts referred to in paragraph 2 on a regular basis, within one month of any relevant change in the assessment by international organisations and standard setters, and at least every two years to ensure that the specific enhanced due diligence measures identified pursuant to paragraph 4 take account of the changes in the AML/CFT framework of the third country and are proportionate and adequate to the risks.

Removed:Article 25 – title: Identification of third countries posing a specific and serious threat to the Union’s financial system

Removed:Article 25 – paragraph 1: 1. In the context of its tasks specified in Article 5 (1) (b) of Regulation (EU) .../... [insert reference to AMLA Regulation], AMLA shall monitor and assess, in line with the risk-based approach, third countries that pose a specific and serious threat to the financial system of the Union and the proper functioning of the internal market other than those covered by Articles 23 and 24. / AMLA shall carry out the assessment referred to in the first subparagraph on its own initiative, or following a request from the European Parliament, the Council or the Commission. / Following a request from the European Parliament, the Council or the Commission, AMLA shall analyse whether a specific third country poses a specific and serious threat to the financial system of the Union and the proper functioning of the internal market and assess whether specific enhanced due diligence measures or countermeasures should be proposed in accordance with paragraph 3 in order to mitigate such threat. Where AMLA concludes that the specific third country referred to in the first subparagraph does not pose a specific and serious threat to the financial system of the Union, it shall provide a report to the requesting institution within [30/ 60] days of receipt of the request stating the reasons for its decision.

Removed:Article 25 – paragraph 2 – introductory part: 2. For the purpose of identifying and monitoring the third countries posing a specific and serious threat to the financial system of the Union and the proper functioning of the internal market referred to in paragraph 1, and determining the level of threat, AMLA shall take into account the following criteria where relevant:

Removed:Article 25 – paragraph 2 – point a – point i: (i) the criminalisation of money laundering and its predicate offences and terrorist financing;

Removed:Article 25 – paragraph 2 – point a – point v: (v) the requirements relating to the availability of accurate and timely information of the beneficial ownership of legal persons and arrangements to competent authorities held by a public authority or body functioning as a beneficial ownership register, or an alternative mechanism that is as efficient;

Removed:Article 25 – paragraph 2 – point a – point v a (new): (va) the laws, regulations and administrative provisions of the third country prevent the effective cooperation with competent authorities and judicial authorities of the Member States;

Removed:Article 25 – paragraph 2 – point a – point v b (new): (vb) policies in relation to targeted financial sanctions and proliferation financing-related targeted financial sanctions and requirements to mitigate and manage the risks of non-implementation and evasion such sanctions;

Removed:Article 25 – paragraph 2 – point a – point v c (new): (vc) whether the third country is on the Union list of non-cooperative jurisdictions for tax purposes;

Removed:<

Removed:Article 25 – paragraph 2 – point a – point v d (new): (vd) whether the third country legal framework provides financial secrecy;

Removed:Article 25 – paragraph 2 – point a – point v e (new): (ve) whether the third country’s actions run counter to the FATF core principles or represent a gross violation of the commitment to international cooperation;

Removed:Article 25 – paragraph 2 – point c a (new): (ca) the quality and effectiveness of financial supervision;

Removed:Article 25 – paragraph 2 – point c b (new): (cb) the existence of a regulatory framework for crypto-assets service providers;

Removed:Article 25 – paragraph 2 – point c c (new): (cc) the extent to which that third country is identified as having significant levels of corruption or other criminal activity;

Removed:Article 25 – paragraph 2 – point c d (new): (cd) the recurrence of the involvement of the third country in money laundering or terrorist financing, as reflected in criminal analyses and investigations by Member States’ competent authorities, and notably those supported by Europol.

Removed:Article 25 – paragraph 3: 3. For the purposes of determining the level of threat referred to in paragraph 1 and identifying mitigating measures AMLA shall take into account any opinion issued by EBA, ESMA or EIOPA concerning the specific impact on the orderly functioning and integrity of the Union’s financial system due to the level of threat posed by a third country.

Removed:Article 25 – paragraph 4: 4. When monitoring identifying the third countries posing a specific and serious threat to the Union and determining the level of threat, AMLA shall assess the impact of such threat on the financial system of the Union and on the proper functioning of the internal market. AMLA shall take into account, where appropriate, any relevant public revelations, evaluations, assessments or reports drawn up by other Union institutions, bodies and agencies, competent authorities, civil society organisations and academia as well as international organisations and standard setters with competence in the field of preventing money laundering and combating terrorist financing.

Removed:Article 25 – paragraph 5: deleted

Removed:Article 25 – paragraph 6: deleted

Removed:Article 25 – paragraph 7: 7. In order to ensure a consistent approach towards threats of money laundering or terrorist financing coming from the third countries referred to in paragraph 1, AMLA shall identify specific enhanced due diligence measures that obliged entities shall apply to mitigate risks related to business relationships or occasional transactions involving natural or legal persons from a high third country that poses a specific and serious threat to the Union. / For that purpose, AMLA shall develop draft regulatory technical standards to specify the appropriate enhanced due diligence measures, proportionate to the level of threat, among those listed in Article 28(4), points (a) to (g) that obliged entities shall apply. AMLA shall submit those draft regulatory technical standards to the Commission for adoption. Those draft regulatory technical standards shall be based on a purely technical assessment of the risks of money laundering and terrorist financing and do not imply strategic decisions or policy choices. / The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in this paragraph in accordance with Articles 38 to 41 of Regulation (EU) .../... [please insert reference – proposal for establishment of an Anti-Money Laundering Authority - COM/2021/421 final]. / AMLA shall review the regulatory technical standards referred to in paragraph 5 on a regular basis and at least every two years to ensure that the measures referred to …

Removed:Article 25 – paragraph 7 a (new): 7a. If the specific and serious threat to the financial system of the Union persists and no effective measures have been taken or are being taken by the third country to mitigate the high risks, the Commission shall adopt by means of delegated acts specific countermeasures among those listed in Article 29, where justified by the nature of the threat. For that purpose, the Commission shall request AMLA to issue an opinion aimed at assessing the measures which may have been taken or are being taken by the third country to mitigate the threat and identifying possible countermeasures. / In case of significant divergences with the opinion of AMLA, the Commission shall carry out a reasoned analysis, which shall be made publicly available.

Removed:Article 25 a (new): Article 25a / Identification of credit or financial institutions not established in the Union posing a specific and serious threat to the Union’s financial system / 1. AMLA shall assess, in line with the risk-based approach, whether specific credit or financial institutions not established in the Union which pose a specific and serious threat to the financial system of the Union. / AMLA shall carry out the assessment referred to in the first subparagraph on its own initiative following information received in the context of its supervisory tasks, or following a request from the European Parliament, the Council, a Member State, or a supervisor. / 2. For the purpose of the identification of credit or financial institutions as referred to in paragraph 1, AMLA shall take into account in particular the following criteria as regards the credit or financial institution: / (a) the involvement of such entity in money laundering and terrorist financing; / (b) any connections with organised crime and terrorism; / (c) compliance with customer due diligence procedures; / (d) any illegal activities; and / (e) the provision of products and services prohibited in the Union, such as anonymous accounts, and other anonymising tools providing for the anonymization of the customer account or obfuscation of transactions, as its main activity. / 3. For the purpose of identifying credit of financial institutions as referred to in paragraph 1, AMLA shall take into account, where appropriate, any rele…