Source: AMLA final report draft
- Anti-money laundering
AMLAR supplemental acts
- ITS on cooperation for the purposes of direct supervision
Article 4 Identification of eligible obliged entities
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 4 of the ITS on cooperation for the purposes of direct supervision say?
This article sets out the procedural framework for the first stage of the selection process: identifying which obliged entities are provisionally eligible for direct supervision by the Authority.
It establishes a structured, time-bound sequence of actions involving financial supervisors of both home and host Member States and the Authority, moving from initial data collection through to the production of a final list of provisionally eligible entities.
The article also builds directly into Article 5, which governs the subsequent, more detailed data collection phase that follows once provisional eligibility has been established.
Important points:
- Financial supervisors of the home Member State are required to collect eligibility information from credit institutions and financial institutions, submit it to the Authority by 15 August of year X-1, and provide a final submission by 30 September of year X-1.
- Financial supervisors may exempt entities from submitting eligibility information where objective, available, credible and verifiable data confirms ineligibility, but must document the basis for any such exemption, which the Authority can request and review.
- The Authority is responsible for issuing a preliminary list of provisionally eligible entities by 25 August of year X-1, facilitating the resolution of any inaccuracies between home and host supervisors, and producing the final list that feeds into Article 5 data collections.
Springlex's summary of the article is a reading aid, not a substitute for the legal text.
For the purposes of identifying eligible obliged entities that shall be assessed during a selection process in year X, financial supervisors of the home Member State shall collect the eligibility information from credit institutions and financial institutions as of 31 December of year X-2. In case of groups of credit institutions and financial institutions, the information shall be collected from the parent undertaking defined in Article 2(1)(42) of Regulation (EU) 2024/1624 located in their Member State.
By way of derogation from paragraph 1, financial supervisors of the home Member State may exempt credit institutions and financial institutions, from submitting eligibility information, where the financial supervisors of the home Member State, on the basis of objective, available, credible and verifiable data, can establish that credit institutions or financial institutions, and groups thereof, are not eligible. Financial supervisors of the home Member State shall document the basis for any exemption. The Authority may request and assess that documentation to verify the appropriateness of the exemptions granted by the financial supervisor of the home Member State.
Provisionally eligible obliged entities shall qualify for the selection process in year X.
By 15 August of year X-1, financial supervisors of the home Member State shall submit to the Authority eligibility information collected pursuant to paragraph 1 in accordance with the data exchange format specifications referred to in Article 5(6).
By 25 August of year X-1, the Authority shall establish and provide all financial supervisors within each Member State with the preliminary list of provisionally eligible entities referred to in paragraph 3. Each financial supervisor shall review the list and the accuracy of the information related to the obliged entities operating in their Member State. They shall confirm to the Authority whether they are the financial supervisors of those obliged entities.
In case the financial supervisors of the host Member States identify inaccuracies or cases where they are incorrectly identified as the financial supervisor in the preliminary list of provisionally eligible entities referred to in paragraph 3, they shall liaise with the financial supervisor of the home Member State to correct the information before the final submission referred to in paragraph 8.
In the case of difficulty to achieve a common understanding, the Authority shall make a reasoned proposal for a solution to the financial supervisors involved and assist them in reaching an agreement.
The Authority shall provide the contact points of each financial supervisor of the home Member State to the financial supervisors of the host Member State for the purpose of the liaison process referred to in paragraph 6.
By 30 September of year X-1, financial supervisors of the home Member State shall submit to the Authority the final eligibility information.
The Authority shall establish and provide financial supervisors with the final list of provisionally eligible obliged entities that shall be included in the data collections referred to in Article 5.
The Authority shall verify, based on the data collected pursuant to Article 5(1), whether provisionally eligible obliged entities qualify as eligible obliged entities for the selection process in year X.
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
crypto-asset service provider
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
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