Source: AMLA final report draft
- Anti-money laundering
AMLR supplemental acts
- RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches
Article 12 Determination of the entity that shall have the responsibility of implementing group-wide requirements
This is a draft act
This text has been parsed from the AMLA final report draft as published on 30 September 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 April 2026)
Summary What does Article 12 of the RTS on group-wide minimum requirements and additional measures for third-country subsidiaries and branches say?
This short but pivotal article serves as the concluding step in a three-part identification process.
Having established the criteria for "sufficient prominence" in Article 10 and "sufficient understanding of operations" in Article 11, Article 12 brings these two assessments together: once an obliged entity satisfies both tests, the group must formally designate that entity as the parent undertaking in the Union.
The article then confirms what follows from that designation, namely that the identified parent undertaking takes on responsibility and oversight for implementing group-wide AML/CFT requirements.
Important points:
- Obliged entities in a group must identify one entity among them as the parent undertaking in the Union, provided it meets the criteria set out in Articles 10 and 11.
- The designated parent undertaking takes on full responsibility and oversight for implementing group-wide requirements under Regulation (EU) 2024/1624 and the relevant sections of this Regulation.
- Only one entity can hold this role, making the correct identification of the parent undertaking a critical compliance step for the group.
Springlex's summary of the article is a reading aid, not a substitute for the legal text.
Obliged entities in a group that determine they have sufficient prominence within the group pursuant to Article 10 and have sufficient understanding of operations in the group pursuant to Article 11 shall identify one obliged entity amongst them as the parent undertaking within the group.
The obliged entity identified as the parent undertaking in the Union shall have the responsibility and oversight of implementing group-wide requirements as referred to in Article 16(1) of Regulation (EU) 2024/1624 and Sections 2, 3 and 4 of this Regulation.
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
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
group