RTS on pecuniary sanctions and administrative measures

To ensure a consistent approach to assessing the level of gravity of breaches across Member States, this Regulation sets specific combinations of indicators that, if identified by the supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; as an outcome of the assessment of a breach, should lead to its classification into a certain category of gravity. Those combinations of indicators are not exhaustive. Supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; may classify other combinations of indicators into the same categories.

An important indicator for classifying the level of gravity of breaches is the conduct of the natural person or of the legal person, including its senior managementmeans the members of the management body in its management function, as well as officers and employees with sufficient knowledge of the obliged entity’s money laundering and terrorist financing risk exposure and sufficient seniority to take decisions affecting its risk exposure; and its management body in its supervisory functionmeans the management body acting in its role of overseeing and monitoring management decision-making;. Supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should consider whether a breach was committed intentionally or negligently. Supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should pay particular attention to situations where the natural person or legal person appears to have had knowledge of the breach and took no action, or where their action directly contributed to the breach.

Some administrative measures are more severe than others. To ensure a consistent approach across Member States, it is necessary to set out common criteria that supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; should take into account when considering whether to apply the administrative measures listed under Article 56(2), points (e), (f), and (g), of Directive (EU) 2024/1640, including the withdrawal or suspension of the authorisation, since these could have the highest impact on the obliged entities and the market.

Periodic penalty payments are a tool that supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; can use to compel compliance with administrative measures. Where supervisorsmeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; decide to impose periodic penalty payments they should take into account all relevant factors when determining the appropriate and proportionate amount of periodic penalty payments on obliged entities and natural persons to compel them to comply with the imposed administrative measures.

The decision on the imposition of periodic penalty payments should be taken on the basis of findings that allow the supervisormeans the body entrusted with responsibilities aimed at ensuring compliance by obliged entities with the requirements of this Regulation, including AMLA when performing the tasks entrusted to it in Article 5(2) of Regulation (EU) 2024/1620; to conclude that an obliged entity or natural person has failed to comply with an administrative measure within a specified period.

Decisions to impose periodic penalty payments should be based exclusively on grounds on which the obliged entity or natural person has been able to exercise its right to be heard.

The periodic penalty payments imposed should be effective and proportionate, having regard to the circumstances of the specific case.

To ensure legal certainty, if not otherwise stipulated by this Regulation, provisions of law applicable in the Member State where the periodic penalty payment is imposed and collected, should apply.

This Regulation is based on the draft regulatory technical standards submitted to the Commission by the Authority for Anti-Money Laundering and Countering the Financing of Terrorism.