Art. 18 Determination of sufficient understanding of operations | RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches | AML

1. Pursuant to Article 2(1) number (42)(b)(iii) of Regulation (EU) 2024/1624 sufficient understanding of operations shall be determined with any of, but not limited to, the following circumstances:
  1. the obliged entity having the right or ability to decide on the strategy or to direct the activities of the other obliged entities established in the Union;
  2. the obliged entity having the right or ability to decide on important transactions, including the transfer of profits or losses of the other obliged entities established in the Union;
  3. the obliged entity having the right or ability to coordinate the management or to decide on the control functionmeans a function that is independent from the commercial functions it controls and that is responsible to provide an objective assessment of the obliged entity’s risks, review or report on those, including, but not limited to, the risk management function, the compliance function and the internal audit function;(s) of one or more of the other obliged entities established in the Union;
  4. the obliged entity having critical or important outsourcing arrangements in place for one or more of the obliged entities established in the Union.
1. Where paragraph 1 does not determine sufficient understanding of operations, this shall be based on the obliged entity with the highest number of full-time equivalent staff members of the compliance functions referred to in Article 16(2) of Regulation (EU) 2024/1624 in the Union.
1. In case the determination of sufficient understanding of operations leads to identify an obliged entity in the Union different from the obliged entity having sufficient prominence, the determination of sufficient prominence shall prevail over the determination of sufficient understanding of operations.