18. Assessment of the suitability of individual members of the management body

Institutions should require members of the management body to demonstrate their suitability by providing at least the documentation that is required by competent authorities for the assessment of suitability, in accordance with Title VIII and Annex III of these Guidelines.

As part of the assessment of the suitability of an individual member of the management body, institutions should:

• a. gather information on the member ’ s suitability through various channels and instruments (e.g. diplomas and certificates, recommendation letters, curricula vitae, interviews, questionnaires);
• b. gather information on the reputation, integrity and honesty of the assessed individual, including assessing whether there are reasonable grounds to suspect that ML/TF is being or has been committed or attempted or that the risk thereof could be increased;
• c. evaluate the independence of mind of the assessed individual;
• d. require the assessed individual to verify that the information provided is accurate and to provide proof of information, where necessary;
• e. require the assessed individual to declare any actual and potential conflicts of interest;
• f. validate, to the extent possible, the correctness of the information provided by the assessed individual;
• g. evaluate within the management body in its supervisory function or, where established, the nomination committee, the assessment results; and
• h. where necessary, adopt corrective measures to ensure the individual suitability of the members of the management body in accordance with section 22.

Where there is a matter which causes concern about the suitability of a member of the management body, an assessment of how this concern affects that person’s suitability should be undertaken. In this assessment institutions should take into account the existence of reasonable grounds to suspect that ML/TF is being or has been committed or attempted or that the risk thereof could be increased.

Institutions should document a description of the position for which an assessment was performed, including the role of that position within the institution, and should specify the results of the suitability assessment in relation to the following criteria:

• a. sufficient time commitment;
• b. compliance of members of the management body that hold a directorship in a significant CRD institution with the limitation of directorships under Article 91(3) of Directive 2013/36/EU;
• c. sufficient knowledge, skills and experience;
• d. reputation, honesty and integrity;
• e. independence of mind.