Recital 4

(4)To ensure that reporting authorities report weaknesses to the database at an early stage, a material weakness should be defined in such a way that it encompasses not only weaknesses that reveal, but also those weaknesses that could lead to a significant failure in complying with applicable requirements related to anti-money laundering and combating the financing of terrorism (AML/CFT) even if such failure has not yet occurred. This is also justified by the fact that information should be reported to the database on a best effort basis by those authorities that do not possess the same level of AML/CFT information and expertise as the supervisory authorities designated as competent under Directive (EU) 2015/849 of the European Parliament and of the Council ² .