Commission Delegated Regulation (EU) 2024/595 Annex I

Annex I

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ANNEX I

CORRESPONDING SITUATIONS

Reporting authorities may come across weaknesses in the following situations:

PART 1: AML/CFT authorities

When carrying out their on-site and off-site supervisory activities, regarding:

(a)	customer due diligence measures, including customer ML/TF risk assessments, reliance on third parties and transaction monitoring;

(b)	suspicious transaction reporting;

(c)	record-keeping;

(d)	internal AML/CFT systems and controls;

(e)	risk management system, including business-wide ML/TF risk assessments;

(f)	group-wide policies and procedures including policies for sharing information within the group.

PART 2: Prudential authorities

During the authorisation process and the process for the assessment of the acquisition of qualifying holdings, regarding:

analysis of business strategy and of business model and reflection on other risk areas, including liquidity where applicable;

fitness and propriety assessment of the members of the management body and key function holders, where performed;

notification to establish a branch or to provide services under the freedom of establishment or the freedom to provide services;

shareholders or members holding qualifying holdings or, exclusively at authorisation, and where applicable, identity of 20 largest shareholders or members if there are no qualifying holdings;

internal governance arrangements including remuneration policies and practices;

internal control framework, including risk management, compliance and internal audit;

information communication technology risk and risk management;

assessment of the sources of funds to pay up capital at authorisation or the source of funds to purchase the qualifying holding.

During ongoing supervision, including on-site inspections and off-site supervisory activities, regarding:

internal governance arrangements, including remuneration policies and practices;

internal control framework, including risk management, compliance and internal audit;

fitness and propriety assessment of the members of the management body and key function holders, where performed;

the assessment of the notifications of proposed acquisitions of qualifying holdings;

operational risks including legal and reputational risks;

information communication technology risk and risk management;

business models;

liquidity management;

outsourcing arrangements and third party risk management;

carrying out the procedures related to market access, banking licensing and authorisations;

carrying out the Supervisory Review and Evaluation Process (SREP); the supervisory review process (SRP), or similar supervisory review processes;

the assessment of ad hoc requests, notifications and applications;

the assessment of the eligibility of and monitoring institutional protection schemes;

information received during ongoing work to ensure compliance with Union prudential rules, including the collection of supervisory reporting.

PART 3: Designated authorities

When preparing for DGS interventions, including stress testing and on-site or off-site inspections, or when executing a DGS intervention, including pay-outs.

PART 4: Resolution authorities and the Single Resolution Board

In the course of their functions, from resolution planning to execution.

PART 5: Conduct of business authorities

When carrying out their on-site and off-site supervisory activities, and in particular in situations where they are aware of:

(a)	a denial of access to financial products or services for reasons of anti-money laundering or combating the financing of terrorism;

(b)	a termination of a contract or the end of a service for reasons of anti-money laundering or combating the financing of terrorism;

(c)	an exclusion of categories of customers, in particular in the situations referred to in points (a) and (b) for reasons of anti-money laundering or combating the financing of terrorism.

PART 6: Payment institutions authorities

In particular:

1.	during the authorisation process and passporting;

when carrying out their on-site and off-site supervisory activities, and in particular:

with regard to payment institutions and electronic money institutions, including when they provide their activities through agents and distributors;

with regard to the payment service provider’s obligations under Directive (EU) 2015/2366, including the obligation of the payee’s payment service providers to make funds available to the payee immediately after the amount is credited to the payment service provider’s account.

PART 7: Any other situations where the weakness is material.