Article 2, Paragraph 1. · Commission Delegated Regulation (EU) 2024/595

Contents

1.For the purposes of Article 9a(1), point (a), first subparagraph, of Regulation (EU) No 1093/2010, a weakness shall mean any of the following:

(a)a breach by a financial sector operator of an AML/CFT-related requirement, which has been identified by a reporting authority;

(b)any situation in which the reporting authority has reasonable grounds to suspect that the financial sector operator has breached an AML/CFT-related requirement, or that the financial sector operator has attempted to breach such a requirement (‘potential breach’);

(c)the ineffective or inappropriate application by a financial sector operator of an AML/CFT-related requirement, or the application of internal policies and procedures that financial sector operators put in place to comply with AML/CFT-related requirements in a way that the reporting authority considers to be inadequate or insufficient to achieve the intended effects of those requirements or policies and procedures and is likely, by its nature, to lead to a breach as referred to in point (a), or to a potential breach as referred to in point (b),if the situation is not rectified (‘ineffective or inappropriate application’).

Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Defined terms · 11

Show every defined term

branch
means a place of business which forms a legally dependent part of a financial sector operator and which carries out directly all or some of the transactions inherent in the business of the financial sector operator, whether its registered office or head office is situated in a Member State or in a third country;
college
means a college of supervisors as referred to in Article 116 of Directive 2013/36/EU, a resolution college or a European resolution college as set out in Articles 88 and 89 of Directive 2014/59/EU, or an AML/CFT college.
conduct of business authority
means the authority entrusted with the duty to ensure compliance of a financial sector operator with the conduct of business or the consumer protection framework set out in any of the legislative acts referred to in Article 1(2) of Regulation (EU) No 1093/2010, Article 1(2) of Regulation (EU) No 1094/2010 and Article 1(2) of Regulation (EU) No 1095/2010 and in any national laws transposing the Directives referred to in those Articles;
designated authority
means a designated authority as defined in Article 2(1), point (18), of Directive 2014/49/EU of the European Parliament and of the Council;
measure
means any supervisory and administrative measure, sanction and penalty, including precautionary or temporary measure, taken by a reporting authority in response to a weakness which is deemed material in accordance with Article 3;
parent financial sector operator
means a financial sector operator in a Member State that has another financial sector operator as a subsidiary or that holds a participation in such a financial sector operator and which is not itself a subsidiary of another financial sector operator authorised in the same Member State;
payment institutions authority
means the authority referred to in Article 22 of Directive (EU) 2015/2366 of the European Parliament and of the Council;
prudential authority
means the authority entrusted with the duty to ensure compliance of a financial sector operator with the prudential framework set out in any of the legislative acts referred to in Article 1(2) of Regulation (EU) No 1093/2010, Article 1(2) of Regulation (EU) No 1094/2010 and Article 1(2) of Regulation (EU) No 1095/2010 and in any national laws transposing the Directives referred to in those provisions, including the European Central Bank with regard to matters relating to the tasks conferred on it by Council Regulation (EU) No 1024/2013;
reporting authorities
means any of the authorities referred to in points (2) to (7) of this Article and the Single Resolution Board;
resolution authority
means a resolution authority as defined in Article 2(1), point (18), of Directive 2014/59/EU of the European Parliament and of the Council;
Union parent financial sector operator
means a parent financial sector operator in a Member State that is not a subsidiary of another financial sector operator established in any Member State;