Article 6 · Commission Delegated Regulation (EU) 2024/595

Contents

Article 6Information about material weaknesses#

Reporting authorities shall provide the EBA with all of the following information about material weaknesses:

(a)the type of material weakness as set out in Article 2(1);

(b)the reason as to why the reporting authority considers that the weakness is material;

(c)a description of the material weakness;

(d)the corresponding situation in which the material weakness has occurred, as set out in Annex I;

(e)the timeline of the material weakness;

(f)the origin of the information on the material weakness;

(g)the AML/CFT-related requirement to which the material weakness relates;

(h)the type of products, services or activities for which the financial sector operator has been authorised that are affected by the material weakness;

(i)whether the material weakness concerns the financial sector operator on its own, its branch, its agent or its distributor alone, as well as any cross-border impact of the material weakness;

(j)whether information on the material weakness has been communicated to a college that has been established for the group to which the financial sector operator belongs; and, if not communicated yet, the reason why;

(k)for the host AML/CFT authorities, whether the information on the material weakness has been communicated to the home AML/CFT authority or to the central contact point referred to in Article 45(9) of Directive (EU) 2015/849, where applicable, and, if not communicated yet, the reason why;

(l)whether the material weakness appears to be inherent in the design of the product, service or activity concerned;

(m)whether the material weakness appears to be linked to specific natural persons, whether a customer, a beneficial owner, a member of the management body or key function holder, including the reasons why the reporting authority considers that that natural person appears to be linked to the material weakness;

(n)any contextual or background information with regard to the material weakness, where known by the reporting authority, including:

(i)whether the material weakness is linked to a specific area relevant for money laundering or the financing of terrorism that has already been identified by the EBA;

(ii)for the AML/CFT authorities, whether the material weakness indicates an emerging risk as regards money laundering or the financing of terrorism;

(iii)whether the material weakness is linked to the use of new technology, and, if so, a short description of that new technology.

For the purposes of point (m), any information on natural persons shall be provided in accordance with Annex II.