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Text as of 1 Jul 2025 · Original act (Official Journal of 19 June 2024) · Same wording as today’s text.Today’s text

Article 32 — Requests to act in exceptional circumstances following indications of serious, repeated or systematic breaches

Financial crimeLevel 1RegulationAMLAIn forceVerifiedOfficial source

32(1)

1.Financial supervisors shall notify the Authority where the situation of any non-selected obliged entity with regard to its compliance with Regulation (EU) 2024/1624, Regulation (EU) 2023/1113, any other legal provisions adopted for the implementation of those Regulations or any administrative act issued by any supervisor and its exposure to ML/TF risks, deteriorates rapidly and significantly, in particular where such deterioration might negatively impact several Member States or the Union as a whole or undermine the integrity of the Union’s financial system.

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32(2)

2.The Authority may, where it has indications of serious, repeated or systematic breaches by a non-selected obliged entity, request its financial supervisor to:

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32(2)(a)
(a)investigate such indications, which could concern breaches of Union law or, where such Union law is composed of directives or expressly grants options for Member States, breaches of national law to the extent that that national law transposes directives or exercises options granted to Member States by Union law; and
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32(2)(b)
(b)consider imposing sanctions on that entity in respect of such breaches in accordance with directly applicable Union law or national law transposing directives.
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In that context, the Authority may, where necessary, also request the financial supervisor of a non-selected obliged entity to adopt an individual decision addressed to that entity requiring it to undertake all necessary actions to comply with its obligations under directly applicable Union law or under national law to the extent that it transposes directives or exercises options granted to Member States by Union law, including the cessation of any practice. The requests referred to in this paragraph shall not impede ongoing supervisory measures by the financial supervisor to which the request is addressed.

32(3)

3.A request referred to in paragraph 2 may be initiated where the Authority has indications of a serious, repeated or systematic breach:

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32(3)(a)
(a)following notifications by financial supervisors pursuant to paragraph 1;
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32(3)(b)
(b)as a result of the Authority’s own collection of well-substantiated information; or
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32(3)(c)
(c)upon receipt of information from Union institutions, bodies, offices or agencies, or from any other reliable and credible information source.
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32(4)

4.The financial supervisor concerned shall comply with any request addressed to it in accordance with paragraph 2 and shall inform the Authority as soon as possible, and at the latest within 10 working days of the day of the notification of such request, of the steps it has taken or intends to take to comply with that request.

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32(5)

5.Where a request referred to in paragraph 2 is not complied with or information on the steps taken or intended to be taken to comply with it is not provided to the Authority within 10 working days of the day of the notification of the request, the Authority may request the Commission to grant permission to transfer temporarily the relevant tasks and powers referred to in Article 5(2) and Article 6(1) related to direct supervision of the non-selected obliged entity from the financial supervisor concerned to the Authority.

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32(6)

6.A request from the Authority to the Commission pursuant to paragraph 5 shall contain the following:

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32(6)(a)
(a)a description of the serious, repeated or systematic breaches of the directly applicable requirements by the non-selected obliged entity and an explanation of why such breaches fall within the scope of competence of the Authority, pursuant to paragraphs 2 and 3;
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32(6)(b)
(b)an explanation of why the request to the financial supervisor referred to in paragraph 2 did not result in any action being taken within the time limit set in paragraph 4, including, where relevant, the information that no reply was submitted by the financial supervisor;
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32(6)(c)
(c)a proposed length of time of a maximum of three years, during which the Authority will exercise the relevant tasks and powers in relation to the non-selected obliged entity concerned;
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32(6)(d)
(d)a description of the measures that the Authority intends to take in relation to the non-selected obliged entity concerned upon the transfer of the relevant tasks and powers to address the serious, repeated or systematic breaches referred to in paragraph 2;
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32(6)(e)
(e)any relevant communication between the Authority and the financial supervisor concerned.
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32(7)

7.Based on the information received pursuant to paragraph 6, the Commission shall have one month from the date of receipt of the request from the Authority to adopt a duly justified decision whether to authorise the transfer of the relevant tasks and powers or to oppose it. The decision shall be notified to the Authority, which shall immediately inform the financial supervisor and the non-selected obliged entity thereof. The European Parliament and the Council shall be informed of the decision.

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32(8)

8.On the tenth working day after the decision authorising the transfer of tasks and powers in relation to the non-selected obliged entity has been notified to the Authority, the non-selected obliged entity shall be deemed a selected obliged entity for the purposes of the exercise of the tasks referred to in Article 5(2) and the powers referred to in Article 6(1) and Articles 17 to 23. The Commission decision shall set a time limit for the exercise of those tasks and powers, upon the expiry of which they shall be automatically transferred back to the financial supervisor concerned.

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32(9)

9.After having consulted the financial supervisor concerned, the Authority may submit to the Commission a request to extend the application of the decision authorising the transfer of tasks and powers. That request shall be submitted at least two months before the expiry of the initial period.

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The request referred to in the first subparagraph shall be accompanied by the following:

32(9)(a)
(a)a description of the measures that the Authority has taken in relation to the obliged entity concerned and of the further measures it intends to take;
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32(9)(b)
(b)a justification as to why those remaining measures address breaches that still fall within the scope of competence of the Authority, pursuant to paragraph 2;
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32(9)(c)
(c)a proposed length of time of a maximum of three years for the continued exercise of the tasks referred to in Article 5(2) and the powers referred to in Article 6(1) and Articles 17 to 23 in relation to the obliged entity;
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32(9)(d)
(d)any relevant communication between the Authority and the financial supervisor concerned.
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The Commission shall adopt a decision whether to grant the extension within the time limit indicated in paragraph 7. Any extension granted pursuant to this paragraph may be granted only once.