115. When deciding on the most effective supervisory follow-up, competent authorities should choose …

When deciding on the most effective supervisory follow-up, competent authorities should choose supervisory tools or measures that are proportionate to the materiality of weaknesses and seriousness of breaches identified and take into consideration the level of risk to which the subject of assessment is exposed. This means that serious breaches and material weaknesses²³ identified in a subject of assessment, which is exposed to significant or very significant ML/TF risk, will require more intense follow-up and more supervisory resources than less serious breaches or non-material weaknesses in less significant risk subjects of assessment. For example, in the most serious cases, competent authorities may carry out a follow-up inspection to ensure that all weaknesses are mitigated effectively and potentially consider a sanction, whereas in less serious cases, it may be sufficient to receive the confirmation from the subject of assessment that issues have been addressed in accordance with the remediation plan proposed by them.

²³ For more details on how to determine the materiality of weaknesses, refer to the Regulatory Technical Standards developed by the EBA under Article 9a of the EBA Regulation.

1. Ħarsa ġenerali

1.1 Referenzi

1.2 Rekwiżiti identifikati

1.3 Standards relatati

2. Rekwiżiti identifikati

3. Standards relatati

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/