Commission Delegated Regulation (EU) 2024/595 Article 6: Information about material weaknesses

Article 6 - Information about material weaknesses

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Article 6

Information about material weaknesses

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Reporting authorities shall provide the EBA with all of the following information about material weaknesses:

((a))

the type of material weakness as set out in Article 2(1);

((b))

the reason as to why the reporting authority considers that the weakness is material;

((c))

a description of the material weakness;

((d))

the corresponding situation in which the material weakness has occurred, as set out in Annex I;

((e))

the timeline of the material weakness;

((f))

the origin of the information on the material weakness;

((g))

the AML/CFT-related requirement to which the material weakness relates;

((h))

the type of products, services or activities for which the financial sector operator has been authorised that are affected by the material weakness;

((i))

whether the material weakness concerns the financial sector operator on its own, its branch, its agent or its distributor alone, as well as any cross-border impact of the material weakness;

((j))

whether information on the material weakness has been communicated to a college that has been established for the group to which the financial sector operator belongs; and, if not communicated yet, the reason why;

((k))

for the host AML/CFT authorities, whether the information on the material weakness has been communicated to the home AML/CFT authority or to the central contact point referred to in Article 45(9) of Directive (EU) 2015/849, where applicable, and, if not communicated yet, the reason why;

((l))

whether the material weakness appears to be inherent in the design of the product, service or activity concerned;

((m))

whether the material weakness appears to be linked to specific natural persons, whether a customer, a beneficial owner, a member of the management body or key function holder, including the reasons why the reporting authority considers that that natural person appears to be linked to the material weakness;

((n))

any contextual or background information with regard to the material weakness, where known by the reporting authority, including:

((i))

whether the material weakness is linked to a specific area relevant for money laundering or the financing of terrorism that has already been identified by the EBA;

((ii))

for the AML/CFT authorities, whether the material weakness indicates an emerging risk as regards money laundering or the financing of terrorism;

((iii))

whether the material weakness is linked to the use of new technology, and, if so, a short description of that new technology.

For the purposes of point (m), any information on natural persons shall be provided in accordance with Annex II.