Recital 38

(38) The Authority should have the opportunity to request a transfer of supervisory tasks and powers relating to a specific obliged entity on its own initiative in the case of inaction, or failure or inability to follow its instructions within the provided deadline. Since the transfer of tasks and powers relating to an obliged entity without a specific request addressed to the Authority by the financial supervisor would require a discretionary decision on the part of the Authority, the Authority should address a specific request to that end to the Commission. In order for the Commission to be able to take a decision coherent with the framework of the tasks allocated to the Authority within the AML/CFT framework, the request of the Authority should enclose an appropriate justification, and should specify the duration of the reallocation of tasks and powers to the Authority. The timeframe for the reallocation of powers should correspond to the time the Authority requires to deal with the risks at entity level, and should not exceed three years. The Authority should be able to request a prolongation of that timeframe where the breaches identified have not been fully addressed. That prolongation should be limited to what is necessary to address those breaches and not exceed three years. The Commission should adopt a decision transferring powers and tasks for supervising the entity to the Authority swiftly, and in any case without undue delay. That decision should be communicated to the European Parliament and to the Council.

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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.