Art. 11 Pending supervisory procedures or investigations | ITS on cooperation for the purposes of direct supervision | AML

This article addresses the handling of pending supervisory procedures and investigations when supervisory competence changes hands — directly building on the transfer framework established in Article 10.

It sets out obligations for both the authority transferring supervision and the authority assuming supervision to ensure that ongoing cases do not fall through the cracks during the transition.

The overarching aim is to maintain continuity and achieve legally enforceable outcomes for any supervisory processes that straddle the handover point.

Important points:

The authority transferring supervision is required to disclose all pending supervisory procedures or investigations to the authority assuming supervision without undue delay, and this list must be incorporated into the Article 10 inventory.
The authority transferring supervision shall make every effort to complete any pending procedures or investigations before the formal transfer of supervisory competence takes place.
Where pending procedures cannot be completed before the transfer, the authority assuming supervision — after consulting with the transferring authority — must define working arrangements covering what stage the transferring authority will complete, how case files will be securely transferred, and how the obliged entity will be informed.

1. The authority transferring supervision shall inform the authority assuming supervision of any supervisory procedure or investigation formally initiated before the change in supervisory competence pursuant to Article 13(4) or (6) of Regulation (EU) 2024/1620 that require adoption of a supervisory decision. The authority transferring supervision shall provide this information without undue delay after being informed about the selection of an obliged entity and no later than the publication of the list referred to in Article 13(4) of Regulation (EU) 2024/1620. Where a supervisory procedure or investigation is formally initiated in the six-month period after the publication of the list referred to in Article 13(4) of Regulation (EU) 2024/1620, the authority transferring supervision shall update this information in a timely manner and shall liaise with the authority assuming supervision without undue delay.
2. The list of pending supervisory procedures or investigations shall be included in the inventory referred to in Article 10.
1. The authority transferring supervision shall make every effort to complete any pending supervisory procedure or investigation requiring adoption of a supervisory decision prior to the transfer of the supervisory competence.
1. In the case of supervisory procedures or investigations requiring adoption of a supervisory decision that cannot be completed prior to the transfer of the supervisory competence, the authority assuming supervision shall, after consultation between the two authorities, inform the authority transferring supervision on the working arrangements to be adopted in relation to such procedures or investigations, taking into account the need to ensure continuity and legally enforceable outcome of the supervisory processes, as well as the stage of the pending supervisory procedure or investigation, the complexity of its subject matter, and the efficient allocation of resources. Such working arrangements should include in particular:
  1. the specification of the stage of the pending supervisory procedure or investigation that is to be completed by the authority transferring supervision before the transfer of the supervisory competence, or, alternatively, the indication that the authority transferring supervision should complete the pending supervisory procedure or investigation with the adoption of a supervisory decision in accordance with the applicable law, and inform the authority assuming supervision accordingly;
  2. the modalities for the secure transfer of the case file, ensuring the protection of personal and business-sensitive data;
  3. the information to be provided to the obliged entity and other relevant participants to the pending supervisory procedure or investigation, concerning the transfer of the supervisory competence.

Article 11 Pending supervisory procedures or investigations

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