Obliged Entity

Anyone on the list in Article 3 of the Anti-Money Laundering Regulation (AMLR). The list has three points: credit institutions, financial institutions, and fifteen kinds of natural or legal person acting in the exercise of their professional activities. The table groups the list and shows the condition attached to each group.

Article 2(1) defines a trust or company service provider as anyone who, by way of business, forms companies, acts as or arranges a director, provides a registered office, acts as a trustee or acts as a nominee shareholder for third parties.

When they take part in the kinds of transaction that Article 3, point (3)(b) lists. There are two cases. The first is acting on behalf of and for a client in any financial or real estate transaction. The second is assisting in the planning or carrying out of a client's transactions that concern any of the following:

• buying and selling real property or business entities;
• managing client money, securities or other assets, including crypto-assets;
• opening or managing bank, savings, securities or crypto-asset accounts;
• organising the contributions needed to create, operate or manage companies;
• creating, setting up, operating or managing trusts, companies, foundations or similar structures.

A lawyer whose principal business is tax advice is also covered, under point (3)(a). Other work, such as defending a client in court, is not on the list.

Even inside the list, the regulation protects the core of legal work. A legal professional does not have to report a suspicion based on information obtained while ascertaining a client's legal position, or while defending or representing the client in judicial proceedings (Article 70(2)). The same carve-out applies to the rule that a firm must refuse to act when due diligence cannot be completed (Article 21(2)). Both carve-outs fall away where the professional takes part in money laundering, gives legal advice for that purpose, or knows the client is seeking advice for that purpose. A member state may also remove the reporting exemption for types of transaction it finds to be of higher risk (Article 70(3)).

Three groups, each on the basis of low risk: certain gambling providers, certain football clubs and businesses whose financial activity is occasional or very limited. Articles 4 to 6 offer nothing to law firms, accounting practices or company service providers.

Under Article 4 a member state may exempt providers of gambling services in full or in part. Casinos can never be exempted. Nor can providers whose principal activity is online gambling or sports betting, unless the online service is operated or regulated by the state.

Under Article 5 a member state may exempt a professional football club in the highest national division if its total annual turnover was below EUR 5,000,000 in each of the previous two calendar years. Clubs in lower divisions may be exempted on proven low risk alone.

Article 6 covers a person who carries out a financial activity on an occasional or very limited basis. The activity must be ancillary to the main business and offered only to its customers. It must not exceed 5% of total turnover, and it must stay under a national limit per customer and per transaction of no more than EUR 1,000. Money remittance is excluded.

The member state must notify the Commission first, with a justification based on a risk assessment. The Commission has two months to confirm the exemption or refuse it (Article 7).

The firm must comply with the AMLR and is supervised for it. The duties fall under four headings: internal policies and controls, customer due diligence, reporting suspicions to the financial intelligence unit, and keeping records (Chapters II, III and V and Article 77).

Each member state must make sure that all obliged entities established in its territory are subject to adequate and effective supervision (Article 37(1) of Directive (EU) 2024/1640). For the accounting, tax and legal professions the supervisor may be a self-regulatory body (Article 37(3)). Trust or company service providers must be licensed or registered. Other obliged entities must meet minimum registration requirements that let supervisors identify them, unless professional rules already do that (Article 4).

The regulation applies from 10 July 2027. Football agents and professional football clubs follow on 10 July 2029 (Article 90).