AMLR Recitals | Anti-Money Laundering Regulation

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Central Bank ( OJ C 210, 25.5.2022, p. 5),
Having regard to the opinion of the European Economic and Social Committee ( OJ C 152, 6.4.2022, p. 89),
Acting in accordance with the ordinary legislative procedure (3)
Whereas:

Recital 1 Directive EU 2015/849 European Parliament Council 4

Recital 2 Respect Application Provisions Directive EU 2015/849 Lay

Recital 3 Strengthen Union S Framework Anti-money Laundering Countering

Recital 4 Money Laundering Terrorist Financing Frequently Carried Out

Recital 5 Since Adoption Directive EU 2015/849 Recent Developments

Recital 6 Harmonisation Relevant Area Criminal Law Enables Strong

Recital 7 Technology Keeps Evolving Offering Opportunities Private Sector

Recital 8 Institutions Persons Covered Regulation Play Crucial Role

Recital 9 Definition Insurance Intermediary Under Directive EU 2016/97

Recital 10 Holding Companies Carry Out Mixed Activities Have

Recital 11 Financial Transactions Can Also Take Place Within

Recital 12 Independent Legal Professionals Subject Regulation When Participating

Recital 13 Order Ensure Respect Rights Guaranteed Charter Fundamental

Recital 14 Directive EU 2018/843 First Legal Address Risks

Recital 15 Creation Markets Unique Non-fungible Crypto-assets Still Recent

Recital 16 Crowdfunding Platforms Vulnerabilities Money Laundering Terrorist Financing

Recital 17 Crowdfunding Intermediaries Operate Digital Platform Order Match

Recital 18 Directive EU 2015/849 Set Out Mitigate Money

Recital 19 Some Categories Persons Trading Goods Particularly Exposed

Recital 20 Motor Vehicles Watercraft Aircraft Higher Market Segments

Recital 21 Investment Migration Operators Private Companies Bodies Persons

Recital 22 Creditors Mortgage Consumer Credits Typically Credit Institutions

Recital 23 Ensure Consistent Approach Necessary Clarify Entities Investment

Recital 24 Activities Professional Football Clubs Football Agents Exposed

Recital 25 Activities Professional Football Clubs Competing Highest Divisions

Recital 26 Regulation Harmonises Measures Put Place Prevent Money

Recital 27 Consistent Case Law Court Justice European Union

Recital 28 Important AML/CFT Requirements Apply Proportionate Manner Imposition

Recital 29 Consistent Set Rules Internal Systems Controls Applies

Recital 30 Appropriate Risk-based Approach Requires Obliged Entities Identify

Recital 31 View Supporting Consistent Effective Approach Identification Risks

Recital 32 Appropriate Take Account Characteristics Needs Smaller Obliged

Recital 33 FATF Has Developed Standards Jurisdictions Identify Assess

Recital 34 Order Ensure Risks Non-implementation Evasion Targeted Financial

Recital 35 Order Reflect Latest Developments International Level Requirement

Recital 36 Listing Designations Individuals Entities UNSC UN Sanctions

Recital 37 Assessing Whether Customer Who Legal Entity Owned

Recital 38 Important Obliged Entities Take All Measures Level

Recital 39 Possible Each Member State Lay Down National

Recital 40 Effective Implementation AML/CFT Measures Also Vital Employees

Recital 41 Individuals Entrusted Tasks Related Obliged Entity S

Recital 42 Situations Might Occur Individuals Who Would Qualify

Recital 43 Consistent Implementation Group-wide AML/CFT Policies Procedures Key

Recital 44 Order Ensure Effective Application AML/CFT Requirements Several

Recital 45 Addition Groups Other Structures Exist Networks Partnerships

Recital 46 Circumstances Branches Subsidiaries Obliged Entities Located Third

Recital 47 Obliged Entities Might Outsource Tasks Relating Performance

Recital 48 Possibility Outsource Tasks Service Provider Allows Obliged

Recital 49 Notification Outsourcing Arrangements Supervisor Does Not Imply

Recital 50 Order Outsourcing Relationships Function Efficiently Clarity Needed

Recital 51 Customer Due Diligence Requirements Essential Ensure Obliged

Recital 52 Necessary Achieve Uniform High Standard Customer Due

Recital 53 Civil Society Organisations Conduct Charitable Humanitarian Work

Recital 54 Obliged Entities Identify Take Reasonable Measures Verify

Recital 55 Risks Posed Foreign Legal Entities Foreign Legal

Recital 56 Process Establishing Business Relationship Carrying Out Steps

Recital 57 Real Estate Transactions Exposed Money Laundering Terrorist

Recital 58 Anonymity Associated Certain Electronic Money Products Exposes

Recital 59 Obliged Entities Not Required Apply Due Diligence

Recital 60 Specific Situations Purposes Customer Due Diligence Customer

Recital 61 Introduction Union-wide Limit Large Cash Payments Mitigates

Recital 62 Some Business Models Based Obliged Entity Having

Recital 63 Gambling Activities Vary Nature Geographical Scope Associated

Recital 64 EUR 2 000 Equivalent National Currency Threshold

Recital 65 Directive EU 2015/849 Despite Having Harmonised Rules

Recital 66 Technological Developments Progress Digitalisation Enable Secure Remote

Recital 67 Ensure AML/CFT Framework Prevents Illicit Funds From

Recital 68 Customer Due Diligence Process Not Limited Identification

Recital 69 Ensure Effectiveness AML/CFT Framework Obliged Entities Regularly

Recital 70 Context Repeated Clients Whom Customer Due Diligence

Recital 71 Obliged Entities Might Provide More Than One

Recital 72 Obliged Entities Also Set Up Monitoring System

Recital 73 Terminating Business Relationship Customer Due Diligence Measures

Recital 74 Order Ensure Consistent Application Regulation AMLA Have

Recital 75 Harmonisation Customer Due Diligence Measures Will Contribute

Recital 76 Approach Review Existing Customers Current AML/CFT Framework

Recital 77 Risk Itself Variable Nature Variables Own Combination

Recital 78 Low Risk Situations Obliged Entities Able Apply

Recital 79 Recognised Certain Situations Present Greater Risk Money

Recital 80 Cross-border Correspondent Relationships Third Country S Respondent

Recital 81 Context Performance Oversight Function Supervisors Might Identify

Recital 82 Context Enhanced Due Diligence Measures Obtaining Approval

Recital 83 Order Protect Proper Functioning Union S Financial

Recital 84 Third Countries Subject Call Action Relevant International

Recital 85 Compliance Weaknesses Both Legal Institutional AML/CFT Framework

Recital 86 Countries Not Publicly Subject Calls Actions Increased

Recital 87 Order Ensure Consistent Identification Third Countries Pose

Recital 88 Considering Could Changes AML/CFT Frameworks Third Countries

Recital 89 Potential External Threats Union S Financial System

Recital 90 Relationships Individuals Who Hold Who Have Held

Recital 91 Risks Associated Persons Who Who Have Entrusted

Recital 92 Members Administrative Management Supervisory Bodies Enterprises Controlled

Recital 93 Order Identify Politically Exposed Persons Union Lists

Recital 94 Customers No Longer Entrusted Prominent Public Function

Recital 95 Insurance Companies Often Do Not Have Client

Recital 96 Close Private Professional Relationships Might Abused Money

Recital 97 Relationships Family Members Might Abused Politically Exposed

Recital 98 Requirements Relating Politically Exposed Persons Family Members

Recital 99 Given Vulnerability Residency-by-investment Schemes Money Laundering Tax

Recital 100 Provision Personalised Asset Management Services Individuals High

Recital 101 Order Avoid Repeated Customer Identification Procedures Appropriate

Recital 102 Introduction Harmonised AML/CFT Requirements Across Union Including

Recital 103 Order Reliance Measures Carried Out Third-party Function

Recital 104 Concept Beneficial Ownership Introduced Increase Transparency Complex

Recital 105 Application Rules Identifying Beneficial Ownership Legal Entities

Recital 106 Meaningful Identification Beneficial Owners Requires Determination Whether

Recital 107 Ownership 25 More Shares Voting Rights Other

Recital 108 Complex Nature Multi-layered Ownership Control Structures Make

Recital 109 Determination Beneficial Owner Corporate Entity Situations Shares

Recital 110 Common Understanding Concept Control More Precise Definition

Recital 111 Indirect Ownership Control Might Determined Multiple Links

Recital 112 Order Ensure Effective Transparency Widest Possible Range

Recital 113 Specific Nature Certain Legal Entities Associations Trade

Recital 114 Ensure Consistent Identification Beneficial Owners Express Trusts

Recital 115 Discretionary Trusts Allow Trustees Discretion Allocation Trust

Recital 116 Characteristics Express Trusts Similar Legal Arrangements Member

Recital 117 Relation Some Types Legal Entities Foundations Express

Recital 118 Pension Schemes Regulated Directive EU 2016/2341 Regulated

Recital 119 Ensure Consistent Identification Beneficial Owners Collective Investment

Recital 120 Consistent Approach Beneficial Ownership Transparency Regime Also

Recital 121 Effective Framework Beneficial Ownership Transparency Requires Information

Recital 122 Legal Entities Legal Arrangements Complex Structure Clarity

Recital 123 Underpinning Effective Framework Beneficial Ownership Transparency Knowledge

Recital 124 Ensure Beneficial Ownership Information Up-to-date Legal Entity

Recital 125 Legal Entities Take All Necessary Measures Identify

Recital 126 Difficulties Obtaining Information Not Valid Reason Avoid

Recital 127 View Purpose Determining Beneficial Ownership Ensure Effective

Recital 128 Need Ensure Level Playing Field Among Different

Recital 129 Nature Legal Arrangements Publicity About Structures Purpose

Recital 130 View Specific Structure Certain Legal Arrangements Need

Recital 131 Nominee Arrangements Can Allow Concealment Identity Beneficial

Recital 132 Risks Posed Foreign Legal Entities Foreign Legal

Recital 133 Registration Requirements Foreign Legal Entities Foreign Legal

Recital 134 Order Encourage Compliance Ensure Effective Beneficial Ownership

Recital 135 View Ensuring Consistent Approach Enforcement Beneficial Ownership

Recital 136 Suspicious Transactions Including Attempted Transactions Other Information

Recital 137 Obliged Entities Establish Reporting Regimes Encompassing All

Recital 138 Transactions Assessed Basis Information Known Known Obliged

Recital 139 Differences Suspicious Transaction Reporting Obligations Between Member

Recital 140 FIUs Able Obtain Swiftly From Any Obliged

Recital 141 Obliged Entities Reply Request Information FIU Soon

Recital 142 Certain Obliged Entities Member States Have Possibility

Recital 143 Notaries Lawyers Other Independent Legal Professionals Auditors

Recital 144 Obliged Entities Exceptionally Able Carry Out Suspicious

Recital 145 Confidentiality Relation Reporting Suspicious Transactions Provision Other

Recital 146 Criminals Move Illicit Proceeds Through Numerous Intermediaries

Recital 147 Exchange Information Among Obliged Entities Applicable Competent

Recital 148 Compliance Requirements Regulation Subject Checks Supervisors

Recital 149 Partnerships Information Sharing Enable Exchange Operational Information

Recital 150 Regulation EU 2016/679 Applies Processing Personal Data

Recital 151 Essential Alignment AML/CFT Framework Revised FATF Recommendations

Recital 152 Processing Certain Categories Sensitive Data Defined Under

Recital 153 Revised FATF Recommendations Demonstrate Order Able Cooperate

Recital 154 Notion Competent Authorities Refers Investigating Prosecuting Authorities

Recital 155 Disseminations FIUs Play Crucial Role Detecting Possible

Recital 156 Purpose Ensuring Appropriate Efficient Administration Justice During

Recital 157 Rights Access Data Data Subject Applicable Personal

Recital 158 Obliged Entities Might Resort Services Other Private

Recital 159 Obliged Entities Obtain Hold Adequate Accurate Information

Recital 160 Anonymity Crypto-assets Exposes Them Risks Misuse Criminal

Recital 161 Use Large Cash Payments Highly Vulnerable Money

Recital 162 Cash Payments Deposits Made Premises Credit Institutions

Recital 163 Might Cases Reasons Force Majeure Caused Natural

Recital 164 Commission Assess Costs Benefits Impacts Adjusting Limit

Recital 165 Commission Also Assess Costs Benefits Impacts Lowering

Recital 166 Risks Associated High-value Goods Might Also Extend

Recital 167 Order Ensure Consistent Application AML/CFT Requirements Power

Recital 168 Commission Empowered Adopt Regulatory Technical Standards Developed

Recital 169 Order Ensure Uniform Conditions Implementation Regulation Implementing

Recital 170 Commission Empowered Adopt Implementing Technical Standards Developed

Recital 171 Regulation Respects Fundamental Rights Observes Principles Recognised

Recital 172 Accordance Article 21 Charter Prohibits Discrimination Based

Recital 173 When Drawing Up Report Evaluating Implementation Regulation

Recital 174 Since Objective Regulation Namely Prevent Use Union

Recital 175 European Data Protection Supervisor Has Consulted Accordance