Article 2
Weaknesses and corresponding situations where weaknesses may occur
1. For the purposes of Article 9a(1), point (a), first subparagraph, of Regulation (EU) No 1093/2010, a weakness shall mean any of the following:
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(a) |
a breach by a financial sector operator of an AML/CFT-related requirement, which has been identified by a reporting authority; |
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(b) |
any situation in which the reporting authority has reasonable grounds to suspect that the financial sector operator has breached an AML/CFT-related requirement, or that the financial sector operator has attempted to breach such a requirement (‘potential breach’); |
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(c) |
the ineffective or inappropriate application by a financial sector operator of an AML/CFT-related requirement, or the application of internal policies and procedures that financial sector operators put in place to comply with AML/CFT-related requirements in a way that the reporting authority considers to be inadequate or insufficient to achieve the intended effects of those requirements or policies and procedures and is likely, by its nature, to lead to a breach as referred to in point (a), or to a potential breach as referred to in point (b),if the situation is not rectified (‘ineffective or inappropriate application’). |
2. The corresponding situations where weaknesses may occur are set out in Annex I.