AMLA - Final Report - Draft Regulatory Technical Standards on the risk assessment for the purpose of selection of credit institutions, financial institutions and groups of credit and financial institutions for direct supervision
AMLA will determine which entities are eligible to be directly supervised based on geographic criteria. To this effect, the draft RTS introduces thresholds to establish whether an obliged entity’s operations under the freedom to provide services are material.
The draft RTS also sets out the risk assessment methodology that AMLA will use to decide which eligible obliged entities it will supervise directly. This methodology is aligned with the methodology supervisors will use to assess entity-level money laundering and terrorist financing risk.
Finally, this draft RTS includes a group-wide risk scoring method that is based on a weighted average of entity-level residual risk scores. This method ensures that high-risk entities and significant operations are appropriately reflected in the group’s risk score.
The draft RTS will be submitted to the Commission for adoption before being published in the Official Journal of the European Union
