Source: AMLA final report draft
- Anti-money laundering
AMLAR supplemental acts
- ITS on cooperation for the purposes of direct supervision
Article 1 Definitions
This is a draft act
This text has been parsed from the AMLA final report draft as published on 21 July 2026. While we run a suite of validations, the automated parsing can result in errors. Also, before it is finally adopted by the Commission, its wording, numbering and references may change, and entire articles might be removed or added.
Earlier drafts: AMLA consultation paper draft (16 December 2025)
Summary What does Article 1 of the ITS on cooperation for the purposes of direct supervision say?
This is a definitions article, establishing the precise meaning of key terms used throughout the regulation.
It is a foundational article that underpins every subsequent provision, and its definitions are tightly linked to the criteria and processes set out in Regulation (EU) 2024/1620 and its accompanying delegated regulation.
The terms defined here are primarily concerned with the selection process for direct AML/CFT supervision, drawing a clear distinction between entities that are provisionally eligible (assessed one year earlier) and those that are fully eligible, as well as clarifying the roles of authorities on either side of a supervisory transfer.
Important points:
- The distinction between "provisionally eligible obliged entities" (assessed as of 31 December of year X-2) and "eligible obliged entities" (assessed as of 31 December of year X-1) is central to how the selection process is staged across multiple articles.
- "Year X" anchors the entire regulatory timeline, meaning all deadlines and obligations in the regulation flow from the year in which the selection process for direct supervision commences.
- The definitions of "authority transferring supervision" and "authority assuming supervision" establish the two parties whose cooperation obligations are governed in later articles dealing with supervisory handovers.
Springlex's summary of the article is a reading aid, not a substitute for the legal text.
For the purposes of this Regulation, the following definitions apply:
‘year X’ means the year where the selection process for direct supervision commences;
‘eligible obliged entities’ means credit institutions, financial institutions, and groups of credit institutions and financial institutions that meet the criteria set out in Article 12(1) of Regulation (EU) 2024/1620, as specified in Article 1 of Delegated Regulation (EU) XXXX/XXX [RTS under art. 12(7) AMLAR], as of 31 December of year X-1;
‘provisionally eligible obliged entities’ means credit institutions, financial institutions, and groups of credit institutions and financial institutions that meet the criteria set out in Article 12(1) of Regulation (EU) 2024/1620, as specified in Article 1 of Delegated Regulation (EU) XXXX/XXX [RTS under art. 12(7) AMLAR], as of 31 December of year X-2;
’eligibility information’ means the necessary information to assess if credit institutions, financial institutions, and groups of credit institutions and financial institutions meet the criteria set out in Article 12(1) of Regulation (EU) 2024/1620, as specified in Article 1 of Delegated Regulation (EU) XXXX/XXX [RTS under art. 12(7) AMLAR];
‘data points’ means the information referred to in Article 5(3) of Delegated Regulation (EU) XXXX/XXX [RTS under art. 12(7) AMLAR] and in the Annex Section A and B thereof;
‘significant revision’ means any revision of one or more data points which significantly impacts the periodic assessment made using these data points at obliged entity level;
‘authority transferring supervision’ means the authority whose competence is to end following a change in competence between the Authority and financial supervisors occuring pursuant to Article 13(4) or (6) of Regulation (EU) 2024/1620;
‘authority assuming supervision’ means the authority which is to become competent following a change in competence between the Authority and financial supervisors occuring pursuant to Article 13(4) or (6) of Regulation (EU) 2024/1620.
Springlex and this text is meant purely as a documentation tool and has no legal effect. No liability is assumed for its content. The authentic version of this act is the one published in the Official Journal of the European Union.
Definition
crypto-asset services
Definition
supervisor
Definition
financial mixed activity holding company
Definition
authority assuming supervision
Definition
crypto-asset service provider
Definition
significant revision
Definition
credit institution
- a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013;
- a branch of a credit institution, as defined in Article 4(1), point (17), of Regulation (EU) No 575/2013, when located in the Union, whether its head office is located in a Member State or in a third country;
Definition
parent undertaking
- for groups whose head office is located in the Union, an obliged entity that is a parent undertaking as defined in Article 2, point (9), of Directive 2013/34/EU that is not itself a subsidiary of another undertaking in the Union, provided that at least one subsidiary undertaking is an obliged entity;
- for groups whose head office is located outside of the Union, where at least two subsidiary undertakings are obliged entities established in the Union, an undertaking within that group established in the Union that:
- is an obliged entity;
- is an undertaking that is not a subsidiary of another undertaking that is an obliged entity established in the Union;
- has a sufficient prominence within the group and a sufficient understanding of the operations of the group that are subject to the requirements of this Regulation; and
- is given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation;
Definition
authority transferring supervision
Definition
crypto-asset
Definition
property
Definition
eligible obliged entities
Definition
group
Definition
financial institution
- an undertaking other than a credit institution or an investment firm, which carries out one or more of the activities listed in points (2) to (12), (14) and (15) of Annex I to Directive 2013/36/EU of the European Parliament and of the Council(32), including the activities of currency exchange offices (bureaux de change), but excluding the activities referred to in point (8) of Annex I to Directive (EU) 2015/2366, or an undertaking the principal activity of which is to acquire holdings, including a financial holding company, a mixed financial holding company and a financial mixed activity holding company;
- an insurance undertaking as defined in Article 13, point (1), of Directive 2009/138/EC of the European Parliament and of the Council(33), insofar as it carries out life or other investment-related assurance activities covered by that Directive, including insurance holding companies and mixed-activity insurance holding companies as defined, respectively, in Article 212(1), points (f) and (g), of Directive 2009/138/EC;
- an insurance intermediary as defined in Article 2(1), point (3), of Directive (EU) 2016/97 where it acts with respect to life insurance and other investment-related insurance services, with the exception of an insurance intermediary that does not collect premiums or amounts intended for the customer and which acts under the responsibility of one or more insurance undertakings or intermediaries for the products which concern them respectively;
- an investment firm as defined in Article 4(1), point (1), of Directive 2014/65/EU of the European Parliament and of the Council(34);
- a collective investment undertaking, in particular:
- an undertaking for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC and its management company as defined in Article 2(1), point (b), of that Directive or an investment company authorised in accordance with that Directive and which has not designated a management company, that makes available for purchase units of UCITS in the Union;
- an alternative investment fund as defined in Article 4(1), point (a), of Directive 2011/61/EU and its alternative investment fund manager as defined in Article 4(1), point (b), of that Directive that fall within the scope set out in Article 2 of that Directive;
- a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 of the European Parliament and of the Council(35);
- a creditor as defined in Article 4, point (2), of Directive 2014/17/EU of the European Parliament and of the Council(36) and in Article 3, point (b), of Directive 2008/48/EC of the European Parliament and of the Council(37);
- a credit intermediary as defined in Article 4, point (5), of Directive 2014/17/EU and in Article 3, point (f), of Directive 2008/48/EC, when holding the funds as defined in Article 4, point (25), of Directive (EU) 2015/2366 in connection with the credit agreement, with the exception of the credit intermediary carrying out activities under the responsibility of one or more creditors or credit intermediaries;
- a crypto-asset service provider;
- a branch of a financial institution referred to in points (a) to (i), when located in the Union, whether its head office is located in a Member State or in a third country;
Definition
provisionally eligible obliged entities
Definition
third country
Definition
funds
Definition
year X
Definition
data points