rec_17

Regulation (EU) 2019/2175 of the European Parliament and of the Council of 18 December 2019 amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority), Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority), Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds, and Regulation (EU) 2015/847 on information accompanying transfers of funds (Text with EEA relevance) (Text with EEA relevance) · European Union

(17) EBA should not collect information on concrete suspicious transactions which financial sector operators are obliged to report to EU Financial Intelligence Units in their Member States pursuant to Directive (EU) 2015/849. Weaknesses should be considered material where they constitute a breach or a potential breach by a financial sector operator, or constitute inappropriate or ineffective application by a financial sector operator, or inappropriate or ineffective application by a financial sector operator of its internal policies and procedures to comply with the legal provisions related to the prevention of the use of the financial system for the purpose of money laundering or terrorist financing. A breach is considered to have occurred where a financial sector operator fails to comply with the requirements of any Union act and of national law transposing such requirements referred to in Article 1(2) of the founding regulations to the extent that those acts contribute to the prevention of the use of the financial system for the purpose of money laundering or terrorist financing. A potential breach is where the competent authority has reasonable grounds to suspect that a breach has occurred, but at that stage is not in a position to finally conclude that it has occurred. However, due to the information obtained at that stage such as information from on-site inspections or off-site proceedings, it is very likely that a breach has occurred. Inappropriate or ineffective application of legal provisions is constituted by the failure of a financial sector operator to implement the requirements of those acts in a satisfactory manner. Inappropriate or ineffective application of a financial sector operator’s internal policies and procedures aiming at ensuring compliance with those acts should be considered as constituting a weakness substantially raising the risk that breaches have occurred or can occur.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-14 · Text as adopted (Official Journal); later amendments are not incorporated in this text.