Recital 36

(36) Certain obliged entities in the financial sector that do not meet the requirements of the regular selection process might nonetheless have a high inherent or residual risk profile from the ML/TF perspective, or might take on, change or expand activities that entail high risk, not mitigated by a commensurate level of internal controls, thus leading to serious, repeated or systematic breaches of AML/CFT requirements. If there are indications of possible serious, repeated or systematic breaches of applicable AML/CFT requirements, they might be a sign of gross negligence on the part of the obliged entity. The supervisory authority should be able to adequately respond to any possible breaches and prevent the risks from materialising and leading to gross negligence in the application of AML/CFT requirements. However, in certain cases, a national level response might not be sufficient or timely, especially when there are indications that serious, repeated or systematic breaches at the level of the entity have already occurred. In those cases, the Authority should request the local supervisor to take specific measures to remedy the situation, including requesting the local supervisor to issue financial sanctions or other coercive measures. To prevent ML/TF risks from materialising, the deadline for action at national level should be sufficiently short.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.