7.2 Assessment of mergers

When a prudential supervisor is assessing merger applications for institutions, it should exchange relevant information related to the merger application with the relevant AML/CFT supervisors of the merging institutions and of the new institution created by the merger. The extent of this interaction is determined by the financial and legal structure of the resulting consolidation form as explained below.

In the case of a merger by acquisition, the prudential supervisor that is responsible for assessing the merger application should proceed as follows:

• a. In case the merger gives rise to a proposed acquisition or increase of qualifying holdings, the prudential supervisor should exchange relevant information for the assessment with the relevant AML/CFT supervisor, and where appropriate with the financial intelligence unit, as foreseen in section 6.2; and
• b. In case the integration of the acquired institution impacts the scope of the acquirer’s license, the prudential supervisor should exchange relevant information for the assessment of the application to extend the acquirer’s authorisation with the relevant AML/CFT supervisor as foreseen in section 6.1.

In the case of a merger by formation of a new institution, the prudential supervisor responsible for assessing the licensing application of the new institution should exchange information with the relevant AML/CFT supervisor as foreseen in section 6.1.

AML/CFT supervisors

Where the AML/CFT supervisors receive a notification of a merger from the prudential supervisors, they should provide all relevant information to the relevant prudential supervisor in respect of the institutions involved in the merger, particularly where the prudential supervisor changes as a result of the merger. In particular, upon receipt of such notification, the AML/CFT supervisor should notify the prudential supervisor of serious breaches of the applicable AML/CFT l aws or material weaknesses in the merging institutions’ AML/CFT framework or of whether they have taken any supervisory measures or imposed any sanctions on the merging institutions.