86. Areas for analysis by competent authorities may include: a. key external dependencies …

Areas for analysis by competent authorities may include:

• a. key external dependencies: competent authorities may determine the main exogenous factors that influence the success of the business model; these may include third-party providers, intermediaries and specific regulatory drivers;
• b. key internal dependencies: competent authorities may determine the main endogenous factors that influence the success of the business model; these may include the quality of IT platforms and operational and resource capacity; and even key people;
• c. franchise: competent authorities may determine the strength of relationships with customers, suppliers and partners; this may include the investment firm’s reliance upon its reputation, the effectiveness of branches, the loyalty of customers and the effectiveness of partnerships; and
• d. areas of competitive advantage: competent authorities may also determine the areas in which the investment firm has a competitive advantage over its peers; these may include any of the above, such as the quality of the investment firm’s IT platforms, or other factors such as the investment firm’s global network, the scale of its business or its product proposition.
• e. ML/TF risks: in the analysis, competent authorities should consider any indications that the business model and activities give rise to increased ML/TF risks, including cash transactions or establishment or use of legal entities in high-risk third countries, as identified in accordance with Article 9 of Directive (EU) 2015/849. Where present, these indications should be complemented by quantitative analysis, as appropriate, focusing in particular on the materiality of the revenues and the income from operations run in such high risk third countries, the concentrations of exposures to customers for which the investment firms apply enhanced customer due diligence as set out in Chapter II, Section 3 of Directive 2015/849.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

  EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

  DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.