6.4 Withdrawal of authorisation of institutions

In case the prudential supervisor decides to initiate the procedure to withdraw the authorisation granted to an institution, based exclusively or among other grounds on its liability for serious breaches of the applicable AML/CFT laws in line with its power under Article 18 of Directive 2013/36/EU, the prudential supervisor should inform the relevant AML/CFT supervisor.

Where AML/CFT supervisors identify serious breaches of the applicable AML/CFT laws in relation to the institution, they should inform the prudential supervisor without undue delay of these serious breaches and their decision and any relevant additional considerations, including whether they consider that the institution is unwilling or unable to remedy these breaches and to what extent the weaknesses or breach can be addressed by measures available to the AML/CFT supervisor.

When informing the prudential supervisor of a serious breach, the AML/CFT supervisor should provide to the prudential supervisor all relevant information and details on the identified serious breach(es) in order to allow the prudential supervisor to properly evaluate the information received and conduct its own assessment on whether withdrawal of the authorisation is appropriate.

The AML/CFT supervisor should, at least, include detailed information explaining why the breach is serious, including the type of breach, the length of time during which the breach occurred, whether the breach represents a systemic failure within the institution, the impact of the breach on the institution and the integrity of the market in which it operates, whether a remediation action, if any, has been planned or taken by the institution to remedy the breach and the supervisory measures and sanctions, if any, planned or imposed by the AML/CFT supervisor.

Following the notification of a serious breach as set out in paragraph 61 above, the AML/CFT supervisor should cooperate to the fullest extent with the prudential supervisor as necessary and provide additional explanations or information where needed.

In case the prudential supervisor decides to withdraw the authorisation granted to an institution based on serious breaches of the applicable AML/CFT laws in line with its power under Article 18 of Directive 2013/36/EU, the prudential supervisor should inform the relevant AML/CFT supervisor and the financial intelligence unit.