124. Competent authorities should verify and review through adequate evidence that the portion of …

Competent authorities should verify and review through adequate evidence that the portion of capital paid up in full according to letters a) or b) above is effectively paid up in full, is of legitimate origin and is booked in the records of the undertaking prior to granting of the authorisation. To assess the legitimate source of the funds³² , competent authorities should apply the criteria set out in paragraphs 14.5 and 14.6 of the ESAs’ Joint Guidelines on the

32 ‘Source of the funds’ means the origin of the funds involved in a business relationship or occasional transaction. It includes both the activity that generated the funds used in the business relationship, for example the customer’s salary, and the means through which the customer’s funds were transferred. The funds could also derive from a ‘source of wealth’, meaning the origin of the customer’s total wealth, for example inheritance or savings, see paragraph 12, letters (n) and (o) of the EBA ML/TF Risk Factor Guidelines, EBA/GL/2021/02 of 1 March 2021, available at https://www.eba.europa.eu/regulation-and-policy/anti-money-laundering-and-e-money/revised-guidelines-on-ml-tf-risk-factors prudential assessment of the proposed acquisition of qualifying holdings³³ , relating to the activity that generated the funds and the means through which they have been transferred, having regard to whether they may give rise to an increased risk of money laundering or terrorist financing.

³³ JC/GL/2016/01 of 20 December 2016 on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector, available at: https://eba.europa.eu/regulation-and-policy/other-topics/joint-guidelines-for-the-prudential-assessment-of-acquisitions-of-qualifying-holdings

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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