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National Bank of Romania

 Point 1.27 of the draft is confusing.
Point 1.27, which states that there are no expectations for the firms to draw up a complete customer risk profile when carrying out occasional transactions, seems to contradict point 1.26, that require firms to obtain sufficient information to identify all relevant risk factors before carrying out occasional transactions.
Because the lack of a definition for complete customer risk profile, the expectations for the firms are unpredictable.
In our opinion, point 1.27 does not bring any obvious benefit in terms of clarity, thus we suggest eliminating it.
 More clarity is needed for point 4.12 letter d) of the draft.
According to point 4.12 let.d), firms should apply risk-based approach to document and verify the information related to the beneficial owner. This approach is inconsistent with Article 13 para.1 let.b) and Article 40 of Directive 2015/849, according to which the obliged entities have to verify the beneficial owner information in all cases in order to understand the ownership and control structure of the customer and to retain evidence and records.
In our opinion 4.12 let. d) should be applicable in relation to the extent of the verification, thus we suggest to rephrase it as follows:
“4.12. d) The firms should determine the extent of the application of steps b) and c) on a risk-sensitive basis.”

 Point 4.52 should be extended in relation to all clients with high risk factors and not to be limited only to PEPs.
According to point 4.52, firms should ensure that the measures they put in place in relation to PEPs do not lead to PEP customers being denied access to financial services.
De-risking practices by financial institutions threaten to cut off access to the financial system for clients with a higher risk (eg. gambling businesses). If the current trend continues, it is possible that some high risk clients to be completely cut off from access to regulated financial services.
In our opinion EU law should deal with de-risking, thus we suggest a more general approach concerning other potential high-risk clients as well, not only the PEPs.
“Firms should ensure that the measures they put in place to comply with the Directive (EU) 2015/849 and with these guidelines in respect of high risk factors do not result in entire categories of customers unduly being denied access to financial services.”
National Bank of Romania