### with regard to cultural goods requiring the submission of an importer statement to enter the customs territory of the union , the customs authorities shall check whether the importer statement complies with the requirements provided for in or on the basis of article 5 and corresponds to the goods presented . for that purpose , they may require additional information from the declarant and physically examine the cultural goods , including by conducting an expertise . they shall register the importer statement by attributing to it a serial number and a registration date and , upon release of the goods , provide the declarant with a copy of the registered importer statement . ### with regard to cultural goods requiring the submission of an importer statement to enter the customs territory of the union , the customs authorities shall check whether the importer statement complies with the requirements provided for in or on the basis of article 5 and corresponds to the goods presented . for that purpose , they may require additional information from the declarant and physically examine the cultural goods by conducting an expertise . the importer statement electronically registered shall be attributed a serial number and a registration date and , upon release of the goods , the declarant will be provided with a copy of the registered importer statement .


### customs authorities shall seize and temporarily retain cultural goods brought into the customs territory of the union where the cultural goods in question entered the customs territory of the union without the conditions laid down in paragraphs 1 and 2 of article 3 being fulfilled . ### customs authorities shall seize and temporarily retain cultural goods brought into the customs territory of the union where the cultural goods in question entered the customs territory of the union without the conditions laid down in paragraphs 1and 2 of article 3 being fulfilled . in case of retention of the cultural goods , adequate conservation conditions shall be guaranteed in accordance with the conditions and responsibilities for the temporary storage of goods as stated in article 147 of regulation no952 / 2013 , having due regard to the particular nature of the goods .


### member states shall organise training and capacity building activities to ensure the effective implementation of this regulation by the authorities concerned . they may also use awareness - raising campaigns to sensitise in particular buyers of cultural goods . ### member states shall organise training and capacity building activities to ensure the effective implementation of this regulation by the authorities and the professionals concerned . they shall also use awareness - raising campaigns to sensitise in particular buyers of cultural goods . moreover , in order to assist the market actors to implement this regulation , information contact points shall be made available in each member state .


### number of cases where cultural goods have been abandoned to the state in accordance with article 199 of regulation no 952 / 2013 . ### number of cases where cultural goods have been abandoned to the state in accordance with article 199 of regulation no 952 / 2013 and


### in certain circumstances , if this is necessary for achieving the objectives of the action , it should be possible to derogate from the principle that recipients and their subcontractors should not be subject to control by non - associated third countries or non - associated third country entities . in that perspective , legal entities established in the union that are controlled by a non - associated third country or a non - associated third country entity can be eligible if relevant and strict conditions relating to the security and defence interests of the union and its member states are fulfilled . the participation of such entities should not contravene the objectives of the fund . applicants should provide all relevant information about the infrastructure , facilities , assets and resources to be used in the action . ### in certain circumstances , if this is necessary for achieving the objectives of the action , it should be possible to derogate from the principle that recipients and their subcontractors should not be subject to control by non - associated third countries or non - associated third country entities . in that perspective , legal entities established in the union that are controlled by a non - associated third country can be eligible if relevant and strict conditions relating to the security and defence interests of the union and its member states are fulfilled . since the defence sector represents a particularly sensitive domain with considerable implications for the security and technological autonomy of the union , member states should apply at national level measures apt to ensure a uniform degree of control over the beneficiaries’ activity , being them controlled by an entity established in the european union or in a third country . in all cases , the participation of such entities should not contravene the objectives of the fund . applicants should provide all relevant information about the infrastructure , facilities , assets and resources to be used in the action .


### the results of the action shall remain within the beneficiary and shall not be subject to control or restrictions by non - associated third countries or other non - associated third country entities during the action and for a specified period after its completion ; ### the beneficiary does not benefit from undue competitive advantage due to subsidies , protection or below - market financing conditions obtained through the support of the controlling government .


### all infrastructure , facilities , assets and resources used in actions financed under the fund shall be located on the territory of the union or associated countries . furthermore , when performing an eligible action , beneficiaries and their subcontractors shall cooperate only with legal entities established in the union or in an associated country and not controlled by non - associated third countries or non - associated third country entities . ### all infrastructure , facilities , assets and resources used in actions financed under the fund shall be located on the territory of the union or associated countries . furthermore , when performing an eligible action , beneficiaries and their subcontractors shall cooperate only with legal entities established in the union or in an associated country and not controlled by non - associated third countries .


### for the award of funding for development actions , the commission shall act by means of implementing acts adopted in accordance with the procedure referred to in article 28 paragraph 2 . ### for the award of funding for research and development actions , the commission shall act by means of implementing acts adopted in accordance with the procedure referred to in article 28 paragraph 2 .


### for actions defined in article 11 f ) to h ) the financial assistance of the fund shall not exceed 80% of the eligible costs of the action . ### for actions defined in article 11 f ) to h ) the financial assistance of the fund shall not exceed 100% of the eligible costs of the action .


### indirect eligible costs shall be determined by applying a flat rate of 25 % of the total direct eligible costs , excluding direct eligible costs for subcontracting , financial support to third parties and any unit costs or lump sums which include indirect costs . ### indirect eligible costs shall be determined in accordance with the beneficiary ' s usual cost accounting practices on the basis of actual indirect costs provided that these cost accounting practices are accepted by national authorities under comparable funding schemes in accordance with article [ 185 ] of the financial regulation and communicated to the commission .


### where appropriate , indirect eligible costs beyond the flat rate of 25 % may be determined in accordance with the beneficiary ' s usual cost accounting practices on the basis of actual indirect costs provided that these cost accounting practices are accepted by national authorities under comparable funding schemes in accordance with article [ 185 ] of the financial regulation and communicated to the commission . ### should the beneficiary not be able to calculate indirect eligible costs on the basis of cost accounting practices referred to in article 16 , indirect eligible costs may be determined by applying a flat rate of 25 % of the total direct eligible costs , excluding direct eligible costs for subcontracting , financial support to third parties and any unit costs or lump sums which include indirect costs . this will be allowed when the beneficiary is an sme or in the absence of accepted practices at national level .


### the contribution to increasing efficiency across the life cycle of defence products and technologies , including cost - effectiveness and the potential for synergies in the procurement and maintenance process and disposal processes ; ### the contribution to increasing efficiency across the life cycle of defence products and technologies , including cost - effectiveness and the potential for synergies in the procurement , usage and maintenance process and disposal processes ;


### the development of digital technologies and internet has transformed the distribution of and access to television and radio programmes . users increasingly expect to have access to television and radio programmes both live and on - demand , using traditional channels such as satellite or cable and also through online services . broadcasting organisations are therefore increasingly offering , in addition to their own broadcasts of television and radio programmes , online services ancillary to their broadcast , such as simulcasting and catch - up services . retransmission services operators , which aggregate broadcasts of television and radio programmes into packages and provide them to users simultaneously to the initial transmission of the broadcast , unaltered and unabridged , use various techniques of retransmission such as cable , satellite , digital terrestrial , closed circuit ip - based or mobile networks as well as the open internet . on the part of users , there is a growing demand for access to broadcasts of television and radio programmes not only originating in their member state but also in other member states of the union , including from members of linguistic minorities of the union as well as from persons who live in another member state than their member state of origin . ### the development of digital technologies and of the online marketplace is transforming the distribution of , and access to , television and radio programmes . users increasingly expect to have access to television and radio programmes both live and on - demand , using traditional channels such as satellite or cable and also through online services . broadcasting organisations are therefore increasingly offering , in addition to their own broadcasts of television and radio programmes , online services ancillary to their broadcast , such as simulcasting and catch - up services , in order to broaden their standard programming . retransmission services operators , which aggregate broadcasts of television and radio programmes into packages and provide them to users simultaneously to the initial transmission of the broadcast , unaltered and unabridged , use various techniques of retransmission such as cable , satellite , digital terrestrial , closed circuit ip - based or mobile networks as well as the open internet . on the part of users , there is a growing demand for access to broadcasts of television and radio programmes not only originating in their member state but also in other member states of the union , including from members of linguistic minorities of the union as well as from persons who live in a member state other than their member state of origin .


### operators of retransmission services , that normally offer multiple programmes which use a multitude of works and other protected subject matter included in the retransmitted television and radio programmes , have a very short time - frame for obtaining the necessary licences and hence also face a significant rights clearing burden . there is also a risk for right holders of having their works and other protected subject matter exploited without authorisation or payment of remuneration . ### operators of retransmission services that normally offer multiple programmes which use a multitude of works and other protected subject matter included in the retransmitted television and radio programmes , have the possibility , in the context of contractual freedom , of obtaining necessary licences and thereby guaranteeing right holders the necessary equitable remuneration they need so that they can continue to offer a wide variety of content , also in the consumer ' s interest .


### the rights in works and other protected subject matter are harmonised , among others , through directive 2001 / 29 / ec of the european parliament and of the council15 and directive 2006 / 115 / ec of the european parliament and of the council . 16 _________________ 15 directive 2001 / 29 / ec of the european parliament and of the council of 22 may 2001 on the harmonisation of certain aspects of copyright and related rights in the information society oj l 167 , 22 . 6 . 2001 , p . 10–19 . 16 directive 2006 / 115 / ec of the european parliament and of the council of 12 december 2006 on rental right and lending right and on certain rights related to copyright in the field of intellectual property oj l 376 , 27 . 12 . 2006 , p . 28–35 . ### the rights in works and other protected subject matter are harmonised , among others , through directive 2001 / 29 / ec of the european parliament and of the council15 and directive 2006 / 115 / ec of the european parliament and of the council16 , which serves in particular to ensure protection of right holders . _________________ 15 directive 2001 / 29 / ec of the european parliament and of the council of 22 may 2001 on the harmonisation of certain aspects of copyright and related rights in the information society oj l 167 , 22 . 6 . 2001 , p . 10–19 . 16 directive 2006 / 115 / ec of the european parliament and of the council of 12 december 2006 on rental right and lending right and on certain rights related to copyright in the field of intellectual property oj l 376 , 27 . 12 . 2006 , p . 28–35 .


### operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile and similar networks , provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite but excluding online transmissions , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . retransmission services which are offered on the open internet should be excluded from the scope of this regulation as those services have different characteristics . they are not linked to any particular infrastructure and their ability to ensure a controlled environment is limited when compared for example to cable or closed circuit ip - based networks . ### operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile and similar networks , provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite but excluding online transmissions , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . for retransmission services which are offered on the open internet this regulation should apply , when they can ensure a controlled environment like a defined group of subscribers or registered users .


### operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile and similar networks , provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite but excluding online transmissions , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . retransmission services which are offered on the open internet should be excluded from the scope of this regulation as those services have different characteristics . they are not linked to any particular infrastructure and their ability to ensure a controlled environment is limited when compared for example to cable or closed circuit ip - based networks . ### operators of retransmission services offered on satellite , digital terrestrial or closed circuit ip - based networks provide services which are equivalent to those provided by operators of cable retransmission services when they retransmit simultaneously , in an unaltered and unabridged manner , for reception by the public , an initial transmission from another member state of television or radio programmes , where this initial transmission is by wire or over the air , including by satellite but excluding online transmissions , and intended for reception by the public . they should therefore be within the scope of this regulation and benefit from the mechanism introducing mandatory collective management of rights . retransmission services which are offered on the open internet should be excluded from the scope of this regulation as those services have different characteristics . they are not linked to any particular infrastructure and their ability to ensure a controlled environment is limited when compared for example to cable or closed circuit ip - based networks .


### in order to provide legal certainty to operators of retransmission services offered on satellite , digital terrestrial , closed circuit ip - based , mobile or similar networks , and to overcome disparities in national law regarding such retransmission services , rules similar to those that apply to cable retransmission as defined in directive 93 / 83 / eec should apply . the rules established in that directive include the obligation to exercise the right to grant or refuse authorisation to an operator of a retransmission service through a collective management organisation . this is without prejudice to directive 2014 / 26 / eu18 and in particular to its provisions concerning rights of right holders with regard to the choice of a collective management organisation . _________________ 18 directive 2014 / 26 / eu of the european parliament and of the council of 26 february 2014 on collective management of copyright and related rights and multi - territorial licensing of rights in musical works for online use in the internal market , oj l 84 , 20 . 3 . 2014 , p . 72–98 . ### in order to provide legal certainty to operators of retransmission services offered on satellite , digital terrestrial or closed circuit ip - based networks , and to overcome disparities in national law regarding such retransmission services , rules similar to those that apply to cable retransmission as defined in directive 93 / 83 / eec should apply . the rules established in that directive include the obligation to exercise the right to grant or refuse authorisation to an operator of a retransmission service through a collective management organisation . this is without prejudice to directive 2014 / 26 / eu18 and in particular to its provisions concerning rights of right holders with regard to the choice of a collective management organisation . the right of prohibition as such is maintained , and only the way in which it is exercised is regulated to a certain extent . this also means that retransmission rights remain assignable . _________________ 18 directive 2014 / 26 / eu of the european parliament and of the council of 26 february 2014 on collective management of copyright and related rights and multi - territorial licensing of rights in musical works for online use in the internal market , oj l 84 , 20 . 3 . 2014 , p . 72–98 .


### this regulation respects fundamental rights and observes the principles recognised in the charter of fundamental rights of the european union . whilst there may be an interference with the exercise of the rights of right holders insofar as mandatory collective management is required for the exercise of the right of communication to the public with regard to retransmission services , it is necessary to prescribe such a condition in a targeted manner for specific services and in order to allow more widespread cross - border dissemination of television and radio programmes by facilitating the clearance of these rights . ### this regulation respects fundamental rights and observes the principles recognised in the charter of fundamental rights of the european union while also taking account of the rules laid down in directive 2001 / 29 / ec , which aims to ensure a high level of protection of the affected copyright , related rights and other subject - matter . whilst there may be an interference with the exercise of the rights of right holders insofar as mandatory collective management is required for the exercise of the right of communication to the public with regard to retransmission services , in the light of contractual freedom , such a condition should be voluntary . the possibility provided for the member states to regulate the activities of collective management organisations does not impinge on the free contractual negotiation of rights provided for in this regulation .


### ' retransmission ' means any simultaneous , unaltered and unabridged retransmission , other than cable retransmission as defined in directive 93 / 83 / eec and other than retransmission provided over an internet access service as defined in regulation 2015 / 2120 of the european parliament and of the council19 , intended for reception by the public of an initial transmission from another member state , by wire or over the air , including that by satellite but excluding online transmission , of television or radio programmes intended for the reception by the public , provided that such retransmission is made by a party other than the broadcasting organisation which made the initial transmission or under whose control and responsibility such transmission was made . _________________ 19 regulation 2015 / 2120 of the european parliament and of the council of 25 november 2015 laying down measures concerning open internet access and amending directive 2002 / 22 / ec on universal service and users’ rights relating to electronic communications networks and services and regulation no 531 / 2012 on roaming on public mobile communications networks within the union , oj l 310 , 26 . 11 . 2015 , p . 1 . ### ' retransmission ' means any simultaneous or for a defined period of time after the initial retransmission , unaltered and unabridged retransmission , intended for reception by the public of an initial transmission from another member state , by wire or over the air , including that by satellite but excluding online transmission , of television or radio programmes intended for the reception by the public , provided that such retransmission is made by a party other than the broadcasting organisation which made the initial transmission or under whose control and responsibility such transmission was made . retransmission includes online - transmissions , when there is a defined group of recipients . this regulation should apply to online transmissions when it is bound to a certain infrastructure or can assure a controlled , clear defined circle of users .


### directive 2001 / 82 / ec of the european parliament and of the council5 and regulation 726 / 2004 of the european parliament and of the council6 constituted the union regulatory framework for the manufacture , authorisation and distribution of veterinary medicinal products . in the light of the experience acquired and following the assessment by the commission of the functioning of the internal market for veterinary medicinal products , the regulatory framework for veterinary medicinal products has been reviewed , and regulation no [ &#8230 ; ] of the european parliament and of the council7 laying down procedures for the authorisation and supervision of veterinary medicinal products has been adopted . ___________ 5 directive 2001 / 82 / ec of the european parliament and of the council of 6 november 2001 on the community code relating to veterinary medicinal products . 6 regulation no 726 / 2004 of the european parliament and of the council of 31 march 2004 laying down community procedures for the authorisation and supervision of medicinal products for human and veterinary use and establishing a european medicines agency . 7 regulation … of the european parliament and of the council of … … … on veterinary medicinal products . ### directive 2001 / 82 / ec of the european parliament and of the council5 and regulation 726 / 2004 of the european parliament and of the council6 constituted the union regulatory framework for the manufacture , authorisation and distribution of veterinary medicinal products . in the light of the experience acquired and following the assessment by the commission of the functioning of the internal market for veterinary medicinal products , the regulatory framework for veterinary medicinal products has been reviewed , and regulation no [ &#8230 ; ] of the european parliament and of the council laying down procedures for the authorisation and supervision of veterinary medicinal products has been adopted , with a view to harmonisation of the laws of the member states . ___________ 5 directive 2001 / 82 / ec of the european parliament and of the council of 6 november 2001 on the community code relating to veterinary medicinal products . 6 regulation no 726 / 2004 of the european parliament and of the council of 31 march 2004 laying down community procedures for the authorisation and supervision of medicinal products for human and veterinary use and establishing a european medicines agency . 7 regulation … of the european parliament and of the council of … … … on veterinary medicinal products .


### as a consequence of the entry into force of the treaty of lisbon , the powers conferred on the commission under regulation no 726 / 2004 should be aligned to articles 290 and 291 of the treaty on the functioning of the european union . in order to supplement or amend certain non - essential elements of regulation no 726 / 2004 , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of amending the annex to technical and scientific progress , determining the situations in which post - authorisation efficacy studies may be required , laying down provisions and requirements for granting marketing authorisations subject to certain specific obligations , establishing procedures for the examination of applications for variations to the terms of marketing authorisations and for the examination of applications for the transfer of marketing authorisations and laying down the procedure for investigating the infringements and the imposition of fines or periodic penalty payments to the holders of marketing authorisations granted under this regulation , the maximum amounts of these penalties as well as the conditions and methods for their collection . ### as a consequence of the entry into force of the treaty of lisbon , the powers conferred on the commission under regulation no 726 / 2004 should be aligned to articles 290 and 291 of the treaty on the functioning of the european union . in order to supplement or amend certain non - essential elements of regulation no 726 / 2004 , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of amending the annex with regard to technical and scientific progress so as to facilitate the placing on the market of new medicinal products , determining the situations in which post - authorisation efficacy studies may be required , laying down provisions and requirements for granting marketing authorisations subject to certain specific obligations , establishing procedures for the examination of applications for variations to the terms of marketing authorisations and for the examination of applications for the transfer of marketing authorisations and laying down the procedure for investigating the infringements and the imposition of fines or periodic penalty payments to the holders of marketing authorisations granted under this regulation , the maximum amounts of these penalties as well as the conditions and methods for their collection .


### as a consequence of the entry into force of the treaty of lisbon , the powers conferred on the commission under regulation no 726 / 2004 should be aligned to articles 290 and 291 of the treaty on the functioning of the european union . in order to supplement or amend certain non - essential elements of regulation no 726 / 2004 , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of amending the annex to technical and scientific progress , determining the situations in which post - authorisation efficacy studies may be required , laying down provisions and requirements for granting marketing authorisations subject to certain specific obligations , establishing procedures for the examination of applications for variations to the terms of marketing authorisations and for the examination of applications for the transfer of marketing authorisations and laying down the procedure for investigating the infringements and the imposition of fines or periodic penalty payments to the holders of marketing authorisations granted under this regulation , the maximum amounts of these penalties as well as the conditions and methods for their collection . ### as a result of the entry into force of the treaty of lisbon , the powers conferred on the commission under regulation no 726 / 2004 should be aligned to articles 290 and 291 of the treaty on the functioning of the european union . in order to supplement or amend certain non - essential elements of regulation no 726 / 2004 , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of amending the annex with regard to technical and scientific progress , determining the situations in which post - authorisation efficacy studies may be required , laying down provisions and requirements for granting marketing authorisations subject to certain specific obligations , establishing procedures for the examination of applications for variations to the terms of marketing authorisations and for the examination of applications for the transfer of marketing authorisations and laying down the procedure for investigating the infringements and the imposition of fines or periodic penalty payments to the holders of marketing authorisations granted under this regulation , the maximum amounts of these penalties as well as the conditions and methods for their collection .


### in order to ensure uniform conditions for the implementation of regulation no 726 / 2004 , implementing powers should be conferred on the commission to adopt implementing acts in relation to marketing authorisations for medicinal products for human use . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council8 . ___________ 8 regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission’s exercise of implementing powers . ### in the interests of ensuring uniform conditions for the implementation of regulation no 726 / 2004 , implementing powers should be conferred on the commission to adopt implementing acts in relation to marketing authorisations for medicinal products for human use . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council8 . ___________ 8 regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission’s exercise of implementing powers .


### ʻarticle 86 at least every ten years , the commission shall publish a general report on the experience acquired as a result of the operation of the procedures laid down in this regulation , and in chapter 4 of title iii of directive 2001 / 83 / ec . ʼ ; ### ̒article 86 at least every ten years , the commission shall publish a general report on the experience acquired as a result of the operation of the procedures laid down in this regulation , in chapter 4 of title iii of directive 2001 / 83 / ec and in regulation no… [ regulation on veterinary medicinal products ] . ʼ ;


### the commission shall be assisted by the standing committee on medicinal products for human use established by article 121 of directive 2001 / 83 / ec . the committee shall be a committee within the meaning of regulation no 182 / 2011 . ### the commission shall be assisted by the standing committee on medicinal products for human use established by article 121 of directive 2001 / 83 / ec and by the standing committee on veterinary medicinal products set up by regulation no &#8230 ; [ regulation on veterinary medicinal products ] . those committees shall be committees within the meaning of regulation no 182 / 2011 .


### the delegation of power referred to in articles 3 , 10b , 14 , 16 and 84 shall be conferred on the commission for an indeterminate period of time from the date of entry into force of this regulation . ### the delegation of power referred to in articles 3 , 10b , 14 , 16 and 84 shall be conferred on the commission for a period of five years from the date of entry into force of this regulation .


### articles 30 to 54 , articles 79 , 87c and 87d and point 2 of the annex are deleted . ### articles 30 to 54 , articles 87c and 87d and point 2 of the annex are deleted .


### as part of its risk assessment and in accordance with sector - specific rules , the commission shall monitor the management and control systems established in the member states . the commission shall , in its audit work , respect the principle of proportionality and shall take into account the level of assessed risk in accordance with the sector - specific rules . ### as part of its risk assessment and in accordance with sector - specific rules , the commission shall monitor the management and control systems established in the member states . the commission shall , in its audit work , respect the principle of proportionality and shall take into account the level of assessed risk in accordance with the sector - specific rules . the materiality threshold for a tolerable risk shall be 4% .


### the application for support under point of paragraph 1 shall be submitted within 24 months from the date of setting up . ### the application for support under point of paragraph 1 shall be submitted at the latest 24 months after the date of setting up .


### support under point of paragraph 1 shall be paid in at least two instalments . instalments may be degressive . the payment of the last instalment under points and of paragraph 1 shall be conditional upon the correct implementation of the business plan . ; ### 5 . support under point of paragraph 1 shall be paid in a single instalment . payment shall be conditional upon the correct implementation of the business plan and shall be made , in any event , within one year following the full implementation of the business plan .


### ' 9 . support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture for operations not covered by the provisions under paragraphs 1 to 8 . such commitments may be carried out by beneficiaries other than those referred to in paragraph 2 . ' ### in article 28 , paragraph 9 is replaced by the following : ' 9 . support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture for operations not covered by the provisions under paragraphs 1 to 8 . this support may not be limited to indigenous resources . such commitments may be carried out by beneficiaries other than those referred to in paragraph 2 . '


### ' support under this measure shall be granted , per hectare of agricultural area , to farmers or groups of farmers who undertake , on a voluntary basis , to convert to or maintain organic farming practices and methods as defined in regulation no 834 / 2007 and who are active farmers within the meaning of article 9 of regulation no 1307 / 2013 . ' ### in article 29 , paragraph 1 , is replaced by the following : ' support under this measure shall be granted , per hectare of agricultural area and , where justified per livestock unit , to farmers or groups of farmers who undertake , on a voluntary basis , to convert to or maintain organic farming practices and methods as defined in regulation no 834 / 2007 and who are active farmers within the meaning of article 9 of regulation no 1307 / 2013 . '


### ' 1 . support under this measure shall be granted , per hectare of agricultural area , to farmers or groups of farmers who undertake , on a voluntary basis , to convert to or maintain organic farming practices and methods as defined in regulation no 834 / 2007 and who are active farmers within the meaning of article 9 of regulation no 1307 / 2013 . ' ### in article 29 , paragraph 1 is replaced by the following : ' 1 . support under this measure shall be granted , per hectare of agricultural area and , in duly justified cases , per livestock units , to farmers or groups of farmers who undertake , on a voluntary basis , to convert to or maintain organic farming practices and methods as defined in regulation no 834 / 2007 and who are active farmers within the meaning of article 9 of regulation no 1307 / 2013 '


### ' financial contributions to premiums for crop , animal and plant insurance against economic losses to farmers caused by adverse climatic events , animal or plant diseases , pest infestation , or an environmental incident ; ' ### in article 36 , point a is replaced by the following : ' financial contributions to premiums for crop , animal , plant and income insurance against economic losses to farmers caused by adverse climatic events , animal or plant diseases , pest infestation , an environmental incident or market related hazard ; '


### support under point of article 36 shall only be granted in duly justified cases and where the drop of income exceeds 20 % of the average annual income of the individual farmer in the preceding three - year period or a three - year average based on the preceding five - year period excluding the highest and lowest entry . income for the purposes of point of article 36 shall refer to the sum of revenues the farmer receives from the market , including any form of public support , deducting input costs . payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance . ### support under point of article 36 shall only be granted in duly justified cases and where the drop of income related to the specific production for which the income stabilisation tool has been set up exceeds 20 % of the average annual income of the individual farmer for this specific production in the preceding three - year period or a three - year average based on the preceding five - year period excluding the highest and lowest entry . income for the purposes of point of article 36 shall refer to the sum of revenues the farmer receives from the market for this specific production , including any form of public support , deducting input costs associated to this specific production . payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance . indexes may be used to calculate the annual income loss of the farmer . the index calculation method used shall permit the fair estimation of the actual income loss of an individual farmer of a specific sector in a given year .


### support under point of article 36 shall only be granted in duly justified cases and where the drop of income exceeds 20 % of the average annual income of the individual farmer in the preceding three - year period or a three - year average based on the preceding five - year period excluding the highest and lowest entry . income for the purposes of point of article 36 shall refer to the sum of revenues the farmer receives from the market , including any form of public support , deducting input costs . payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance . ### support under point of article 36 shall only be granted in duly justified cases and where the drop of income exceeds a threshold of at least 20 % of the average annual income of the group of farmers in a specific sector in the preceding three - year period or a three - year average based on the preceding five - year period excluding the highest and lowest entry . indexes may be used in order to calculate the annual income of the farmer . income for the purposes of point of article 36 shall refer to the sum of revenues the farmer receives from the market , including any form of public support , deducting input costs . payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance .


### working capital that is ancillary to , and linked to a new investment , which receives eafrd support through a financial instrument established in accordance with article 37 of regulation no 1303 / 2013 , may be eligible expenditure . such eligible expenditure shall not exceed 30 % of the total amount of the eligible expenditure for the investment . the relevant request shall be duly substantiated . ### where support is provided through a financial instrument established in accordance with article 37 of regulation no 1303 / 2013 , working capital may be eligible expenditure . such eligible expenditure shall not exceed eur 200 000 or 30% of the total amount of the eligible expenditure for the investment , whichever is the higher .


### ' ' 1 . without prejudice to paragraphs 5 , 6 and 7 of this article , the total amount of union support for rural development under this regulation for the period from 1 january 2014 to 31 december 2020 shall be eur 84 936 million , in 2011 prices , in accordance with the multiannual financial framework for the years 2014 to 2020 . ' ### in article 58 , paragraph 1 is replaced by the following : ' ' 1 . without prejudice to paragraphs 5 , 6 and 7 of this article , the total amount of union support for rural development under this regulation for the period from 1 january 2014 to 31 december 2020 shall be eur 84 936 million , in 2011 prices , in accordance with the multiannual financial framework for the years 2014 to 2020 . without prejudice to a redefinition of the total amount of union support for rural development , the current rural development programmes , approved in accordance with article 10 , shall apply until a new reform is adopted . ' '


### ' the certification body shall be a public or private audit body designated by the member state . where it is a private audit body , and the applicable union or national law so requires , it shall be selected by the member state by means of a public tendering procedure . it shall provide an opinion , drawn up in accordance with internationally accepted audit standards , on the completeness , accuracy and veracity of the annual accounts of the paying agency , on the proper functioning of its internal control system and on the legality and regularity of the expenditure for which reimbursement has been requested from the commission . that opinion shall also state whether the examination puts in doubt the assertions made in the management declaration . ' ### –1 . in article 9 , subparagraph 1 is replaced by the following ' the certification body shall be a public or private audit body designated by the member state . where it is a private audit body , and the applicable union or national law so requires , it shall be selected by the member state by means of a public tendering procedure . it shall provide an opinion , drawn up in accordance with internationally accepted audit standards , on the completeness , accuracy and veracity of the annual accounts of the paying agency , on the proper functioning of its internal control system and on the legality and regularity of the expenditure for which reimbursement has been requested from the commission . that opinion shall also state whether the examination puts in doubt the assertions made in the management declaration . the certification body shall only check compliance with union law . '


### member states shall reimburse the appropriations carried over in accordance with article 12 of the financial regulation to the final recipients who are subject , in the financial year to which the appropriations are carried over , to the adjustment rate . ### the appropriations carried over in accordance with article 12 of the financial regulation if were not used in the current financial year shall be transferred to the reserve for crises in the agricultural sector of the next financial year .


### ' 6 . the commission may adopt implementing acts , laying down the terms and conditions applicable to appropriations carried over in accordance with article 169 of regulation no 966 / 2012 in order to finance the expenditure referred to in article 4 of this regulation . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 116 . ' ### in article 26 , paragraph 6 is replaced by the following : ' 6 . by way of derogation from paragraph 5 if the reserve for crises in the agricultural sector is not used in the current financial year , appropriations shall be carried over to the following year in accordance with article 12 of the financial regulation and shall be available for the agricultural sector in the event of a crisis . ' if the commission foresees that crisis reserve annual amount in the current financial year exceed appropriation which are carried over , the commission shall apply the reduction to direct payments with the financial discipline mechanism in this article . '


### ' 7 . when applying this article , the amount of the reserve for crises in the agricultural sector referred to in article 25 shall be included in the determination of the adjustment rate . any amount not made available for crisis measures by the end of the financial year shall be disbursed in accordance with paragraph 5 of this article . ' ### in article 26 , paragraph 7 is replaced by the following : ' 7 . when applying this article , the amount of the reserve for crises in the agricultural sector referred to in article 25 shall be included in the determination of the adjustment rate , if crisis reserve is used or shall be adjusted to the current financial year . any amount not made available for crisis measures by the end of the financial year shall be carried over to the next financial year . '


### “ ### - 1 . article 4 , the point h is replaced by the following : “ “permanent grassland and permanent pasture” means land used to grow grasses or other forage species naturally or through cultivation and that has not been included in the crop rotation of the holding for five years or more . where member states so decide , it can also include land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas . ”


### “ ### 6 a . article 64 , point a is replaced by the following : “ keep at least a number of eligible hectares corresponding to the number of owned or leased - in payment entitlements held , or to the number of eligible hectares declared in 2015 in accordance with article 36 with a tolerance of 0 . 5 ha or , if is lower , the 25% of the owned or leased - in payments entitlements held or the number of eligible hectares declared in 2015” . ”


### “production , rearing or growing of agricultural products , including harvesting , milking , breeding animals , and keeping animals for farming purposes , ” ### in article 4 , subpoint is replaced by the following : “production , rearing , growing or storage of essential agricultural products and means of production , including harvesting , milking , breeding animals , and keeping animals for farming purposes , ”


### “ “arable land” means land cultivated for crop production or areas available for crop production but lying fallow , including areas set aside in accordance with articles 22 , 23 and 24 of regulation no 1257 / 1999 , with article 39 of regulation no 1698 / 2005 and with article 28 of regulation no 1305 / 2013 , irrespective of whether or not that land is under greenhouses or under fixed or mobile cover ; ” ### in article 4 , this point is replaced by the following : “ “ “arable land” means land cultivated for crop production or areas available for crop production but lying fallow including areas set aside in accordance with articles 22 , 23 and 24 of regulation no 1257 / 1999 , with article 39 of regulation no 1698 / 2005 and with article 28 of regulation no 1305 / 2013 , irrespective of whether or not that land is under greenhouses or under fixed or mobile cover ; it may include , where member states so decide , all areas lying fallow and covered by grasses or other herbaceous forage that were agricultural areas but not permanent grassland at the time of being left to lie fallow for the first time ; ”“


### “ “permanent grassland and permanent pasture” means land used to grow grasses or other herbaceous forage naturally or through cultivation and that has not been included in the crop rotation of the holding for five years or more ; it may include other species such as shrubs and / or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as , where member states so decide , land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas ; ” ### 1 a . in article 4 , the point h is replaced by the following : “ permanent grassland and permanent pasture” means land used to grow grasses or other herbaceous forage naturally or through cultivation and that has not been included in the crop rotation of the holding for seven years or more ; it may include other species such as shrubs and / or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as , where member states so decide , land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas ; ”


### “ “permanent grassland and permanent pasture” means land used to grow grasses or other herbaceous forage naturally or through cultivation and that has not been included in the crop rotation of the holding for five years or more ; it may include other species such as shrubs and / or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as , where member states so decide , land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas ; ” ### in article 4 , this point is replaced by the following : “ “ “permanent grassland and permanent pasture” means land used to grow grasses or other herbaceous forage naturally or through cultivation and that has not been included in the crop rotation of the holding for five years or more ; it may include other species such as shrubs and / or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as , where member states so decide , land which can be grazed and , where member states so decide , other sources of non - forage animal feed provided that the grasses and other herbaceous forage remain predominant as well as , where member states so decide : land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas , and / or land which can be grazed where grasses and other herbaceous forage are not predominant , or absent , in grazing areas ; for the purpose of this definition member states may decide that the following practices are crop rotations : the seeding of grasses or other herbaceous forage on an area after removal of a prior cover of grass or other herbaceous forage if the new cover is established by species or a mix of species other than the prior cover , or the seeding of grasses or other herbaceous forage on an area directly or after removal of a prior cover of grass or other herbaceous forage ; ”“


### “in addition , member states shall provide that , at the latest for claim year 2019 , no payment entitlement shall have a unit value lower than 60 % of the national or regional unit value in 2019 , unless this would , in member states applying the threshold referred to in paragraph 7 , result in a maximum decrease exceeding that threshold . in such cases , the minimum unit value shall be set at a level necessary to respect that threshold . ” ### in article 25 , paragraph 4 is replaced by the following : “in addition , member states shall provide that , at the latest for claim year 2019 , no payment entitlement shall have a unit value lower than 60 % of the national or regional unit value in 2019 in all areas outside the delimited mountain area and lower than 80% in the delimited mountain area , unless this would , in member states applying the threshold referred to in paragraph 7 , result in a maximum decrease exceeding that threshold . in such cases , the minimum unit value shall be set at a level necessary to respect that threshold . ”


### “ member states not exercising the option in article 23 may decide that payment entitlements may be transferred or activated only within the same region , except in the case of actual or anticipated inheritance . ” ### in article 34 , the first subparagraph is replaced by the following : “ member states not exercising the option in article 23 may decide that payment entitlements may be transferred or activated only within the same region or within the member state’s mountain area , except in the case of actual or anticipated inheritance . ”


### instead of applying paragraphs 6 to 9 , member states may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to 25 % of the national average payment per hectare , as established in accordance with paragraph 8 . ### in article 50 , the first subparagraph is replaced by the following : instead of applying paragraphs 6 to 9 , member states may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to 50% of the national average payment per hectare , as established in accordance with paragraph 8 .


### “10 . instead of applying paragraphs 6 to 9 , member states may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to 25 % of the national average payment per hectare , as established in accordance with paragraph 8 . ” ### 4 i . in article 50 , subparagraph 1 is replaced by the following : “10 . instead of applying paragraphs 6 to 9 , member states may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to a value not higher than 50% of the national average payment per hectare , as established in accordance with paragraph 8 . ”


### “features : areas with short rotation coppice conversion factor : n . a . weighting factor : 0 , 3 ecological focus area : 0 , 3 m2” ### 6 a . in annex x , the areas with short rotation coppice is replaced by the following : “features : areas with short rotation coppice conversion factor : n . a . weighting factor : 1 ecological focus area : 1 m2”


### crisis prevention and management , including providing coaching to other producer organisations , associations of producer organisations , producer groups or individual producers ; ### crisis prevention and management , including providing coaching to other producer organisations , associations of producer organisations , producer groups or individual producers , actions and activities aimed to diversification and consolidation of export markets in third - countries ;


### “environmental actions shall respect the requirements for agri - environment - climate payments laid down in article 28 of regulation no 1305 / 2013 . ” ### 1 e . in article 33 , subparagraph 2 is replaced by the following “environmental actions shall respect the requirements for agri - environment - climate payments laid down in articles 28 and 29 of regulation no 1305 / 2013 . ”


### “where at least 80 % of the producer members of a producer organisation are subject to one or more identical agri - environment - climate commitments provided for in article 28 of regulation no 1305 / 2013 , then each one of those commitments shall count as an environmental action as referred to in point of the first subparagraph of this paragraph . ” ### 1 f . in article 33 , subparagraph 3 is replaced by the following : “where at least 80 % of the producer members of a producer organisation are subject to one or more identical agri - environment - climate or organic farming commitments provided for in articles 28 and 29of regulation no 1305 / 2013 , then each one of those commitments shall count as an environmental action as referred to in point of the first subparagraph of this paragraph . ”


### “2 . the contract and / or the offer for a contract referred to in paragraph 1 shall : ” ### 3 c . in article 148 , the introductory part is replaced by the following : “2 . the contract and / or the offer for a contract referred to in paragraphs 1 and 1a shall : ”


### “3 . by way of derogation from paragraph 1 , a contract and / or an offer for a contract shall not be required where raw milk is delivered by a farmer to a co - operative of which the farmer is a member if the statutes of that cooperative or the rules and decisions provided for in or derived from these statutes contain provisions having similar effects to the provisions set out in points , and of paragraph 2 . ” ### 3 d . in article 148 , paragraph 3 is replaced by the following : “3 . by way of derogation from paragraphs 1 and 1a , a contract and / or an offer for a contract shall not be required where raw milk is delivered by a farmer to a co - operative of which the farmer is a member if the statutes of that cooperative or the rules and decisions provided for in or derived from these statutes contain provisions having similar effects to the provisions set out in points , and of paragraph 2 . ”


### “associations of producer organisations” ### 3 l . in article 156 , the heading is replaced by the following : “associations of producer organisations and associations of bargaining organisations”


### “ 2 . by way of derogation from paragraph 1 , member states may , on request , recognise an association of recognised producer organisations in the milk and milk products sector if the member state concerned considers that the association is capable of carrying out effectively any of the activities of a recognised producer organisation , and that it fulfils the conditions laid down in article 161 . ” ### 3 m . in article 156 , paragraph 2 is replaced by the following : “ 2 . member states may , on request , recognise an association of recognised bargaining organisations if the member state concerned considers that the association is capable of carrying out effectively any of the activities of a recognised bargaining organisation , and that it fulfils the conditions laid down in article 154a”


### “1 . during periods of severe imbalance in markets , the commission may adopt implementing acts to the effect that article 101 tfeu is not to apply to agreements and decisions of recognised producer organisations , their associations and recognised interbranch organisations in any of the sectors referred to in article 1 of this regulation , provided that such agreements and decisions do not undermine the proper functioning of the internal market , strictly aim to stabilise the sector concerned and fall under one or more of the following categories : ” ### 4 e . in article 222 , paragraph 1 is replaced by the following : “1 . during periods of severe imbalance in markets , the commission may adopt implementing acts to the effect that article 101 tfeu is not to apply to agreements and decisions of farmers , farmers’ associations , or associations of such associations or recognised producer organisations , recognised bargaining organisations , their associations and recognised interbranch organisations in any of the sectors referred to in article 1 of this regulation , provided that such agreements and decisions do not undermine the proper functioning of the internal market , strictly aim to stabilise the sector concerned and fall under one or more of the following categories : ”


### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2% from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable . ### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2% for the period from 2021 to 2030 , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable .


### member states should partially compensate , in accordance with state aid rules , certain installations in sectors or sub - sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices . the protocol and accompanying decisions adopted by the conference of the parties in paris need to provide for the dynamic mobilisation of climate finance , technology transfer and capacity building for eligible parties , particularly those with least capabilities . public sector climate finance will continue to play an important role in mobilising resources after 2020 . therefore , auction revenues should also be used for climate financing actions in vulnerable third countries , including adaptation to the impacts of climate . the amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed intended nationally determined contributions , subsequent investment plans and national adaptation planning processes . member states should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy . ### member states should partially compensate , in accordance with state aid rules , certain installations in sectors or sub - sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices . the protocol and accompanying decisions adopted by the conference of the parties in paris need to provide for the dynamic mobilisation of climate finance , technology transfer and capacity building for eligible parties , particularly those with least capabilities . public sector climate finance will continue to play an important role in mobilising resources after 2020 . acknowledging global responsibility of the union , member states should promptly financially support efforts undertaken by the least developed countries aimed at developing low emission technologies based on the principle of technological neutrality and mitigation of climate change impact . in this regard a significant percentage of revenues generated by the auctioning of allowances by member states should be granted to international funds , particularly : the green climate fund , the least developed countries fund and the special climate change fund . the amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed intended nationally determined contributions , subsequent investment plans and national adaptation planning processes . member states should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy .


### ' starting in 2021 , the linear factor shall be 2 . 2% . ' ### ' for the period from 2021 to 2030 the linear factor shall be 2 . 2% . '


### ' from 2021 onwards , the share of allowances to be auctioned by member states shall be 57% . ### ' without prejudice to the fundamental principle of free allowances allocation upheld in the period from 2021 to 2030 , the share of allowances to be auctioned by member states shall be at least 57 % .


### present text ' 3 . member states shall determine the use of revenues generated from the auctioning of allowances . at least 50 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , should be used for one or more of the following : ' ### in paragraph 3 , the introductory part is replaced by the following : ' 3 . member states shall determine the use of revenues generated from the auctioning of allowances . 10 % of the revenues generated from the auctioning of allowances referred to in paragraph 2 , including all revenues from the auctioning referred to in paragraph 2 , points and , or the equivalent in financial value of these revenues , should be reserved for financing climate actions in vulnerable developing countries , including adaptation to the impacts of climate change . 40% of the revenues should be utilised for one or more of the following : '


### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the investment board shall develop guidelines and investment selection criteria specific to such projects . ### the fund shall also finance small - scale investment projects in the modernisation of energy systems and energy efficiency . to this end , the beneficiary member states shall develop national guidelines and investment selection criteria specific to such projects in line with the objectives of the fund and the guidelines elaborated by an advisory board referred to in paragraph 4 . the national guidelines shall be made public .


### directive 2015 / 849 of the european parliament and the council24 constitutes the main legal instrument in the prevention of the use of the union ' s financial system for the purposes of money laundering and terrorist financing . that directive , which is to be transposed by 26 june 2017 , sets out a comprehensive framework to address the collection of money or property for terrorist purposes by requiring member states to identify , understand and mitigate risks related to money laundering and terrorist financing . _________________ 24 directive 2015 / 849 of the european parliament and of the council of 20 may 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing , amending regulation no 648 / 2012 of the european parliament and of the council , and repealing directive 2005 / 60 / ec of the european parliament and of the council and commission directive 2006 / 70 / ec . ### directive 2015 / 849 of the european parliament and the council24 constitutes the main legal instrument in the prevention of the use of the union ' s financial system for the purposes of money laundering and terrorist financing . that directive , which is to be transposed by 26 june 2017 , sets out an updated , transparent , efficient and comprehensive legal framework to address the collection of money or property for terrorist purposes by requiring member states to identify , understand , mitigate and prevent risks related to money laundering and terrorist financing . _________________ 24 directive 2015 / 849 of the european parliament and of the council of 20 may 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing , amending regulation no 648 / 2012 of the european parliament and of the council , and repealing directive 2005 / 60 / ec of the european parliament and of the council and commission directive 2006 / 70 / ec .


### recent terrorist attacks have brought to light emerging new trends , in particular regarding the way terrorist groups finance and conduct their operations . certain modern technology services are becoming more and more popular as alternative financial systems and remain outside the scope of union legislation or benefit from exemptions that may no longer be justified . in order to keep pace with evolving trends , further measures to improve the existing preventive framework should be taken . ### recent terrorist attacks have brought to light emerging new trends , in particular regarding the way terrorist groups finance and conduct their operations . certain modern technology services are becoming more and more popular as alternative financial systems and remain outside the scope of union legislation or benefit from exemptions that may no longer be justified . in order to keep pace with evolving trends , further measures should be taken to ensure increased transparency of financial transactions and of corporate entities under the preventive legal framework in place in the union , with a view to improving the existing preventive framework and countering the financing of terrorism more effectively .


### while the aims of directive 2015 / 849 should be pursued , any amendments to that directive should be consistent with the union ' s ongoing action in the field of countering terrorism and terrorism financing . the european agenda on security25 indicated the need for measures to address terrorist financing in a more effective and comprehensive manner , highlighting that infiltration of financial markets allows terrorism financing . the european council conclusions of 17 - 18 december 2015 also stressed the need to take rapidly further action against terrorist finance in all domains . _________________ 25 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions ' the european agenda on security ' , com 185 final . ### while the aims of directive 2015 / 849 should be pursued , any amendments to that directive should be consistent with the union ' s ongoing action in the field of countering terrorism and terrorism financing , with due regard for the fundamental rights and principles recognised in the charter of fundamental rights of the european union , as well as the observance and application of the proportionality principle . the european agenda on security25 identified as a priority the upgrading of the eu legal framework to combat terrorism , indicating the need for measures to address terrorist financing in a more effective and comprehensive manner , highlighting that infiltration of financial markets allows terrorism financing . the european council conclusions of 17 - 18 december 2015 also stressed the need to take rapidly further action against terrorist finance in all domains . _________________ 25 communication from the commission to the european parliament , the council , the european economic and social committee and the committee of the regions ' the european agenda on security ' , com 185 final .


### union measures must also accurately reflect developments and commitments undertaken at international level . un security council resolution 2199 urges states to prevent terrorist groups from gaining access to international financial institutions . ### union measures must also accurately reflect developments and commitments undertaken at international level . un security council resolutions 2199 and 2253 urge states to prevent terrorist groups from gaining access to international financial institutions .


### providers of exchange services between virtual currencies and fiat currencies as well as custodian wallet providers for virtual currencies are under no obligation to identify suspicious activity . terrorist groups are thus able to transfer money into the union’s financial system or within virtual currency networks by concealing transfers or by benefiting from a certain degree of anonymity on those platforms . it is therefore essential to extend the scope of directive 2015 / 849 so as to include virtual currency exchange platforms and custodian wallet providers . competent authorities should be able to monitor the use of virtual currencies . this would provide a balanced and proportional approach , safeguarding technical advances and the high degree of transparency attained in the field of alternative finance and social entrepreneurship . ### providers of exchange services between virtual currencies and fiat currencies , custodian wallet providers for virtual currencies , issuers , administrators , intermediaries and distributors of virtual currencies , and administrators and providers of systems for online payments are under no obligation to identify suspicious activity . terrorist groups are thus able to transfer money into the union’s financial system or within virtual currency networks by concealing transfers or by benefiting from a certain degree of anonymity on those platforms . it is therefore essential to extend the scope of directive 2015 / 849 so as to include virtual currency exchange platforms , custodian wallet providers , issuers , administrators , intermediaries and distributors of virtual currencies , and administrators and providers of systems for online payments . competent authorities should be able to monitor the use of virtual currencies . this would provide a balanced and proportional approach , safeguarding technical advances and the high degree of transparency attained in the field of alternative finance and social entrepreneurship .


### providers of exchange services between virtual currencies and fiat currencies as well as custodian wallet providers for virtual currencies are under no obligation to identify suspicious activity . terrorist groups are thus able to transfer money into the union ' s financial system or within virtual currency networks by concealing transfers or by benefiting from a certain degree of anonymity on those platforms . it is therefore essential to extend the scope of directive 2015 / 849 so as to include virtual currency exchange platforms and custodian wallet providers . competent authorities should be able to monitor the use of virtual currencies . this would provide a balanced and proportional approach , safeguarding technical advances and the high degree of transparency attained in the field of alternative finance and social entrepreneurship . ### providers of exchange services between virtual currencies and fiat currencies as well as custodian wallet providers for virtual currencies are under no obligation to identify suspicious activity . terrorist groups are thus able to transfer money into the union ' s financial system or within virtual currency networks by concealing transfers or by benefiting from a certain degree of anonymity on those platforms . it is therefore essential to extend the scope of directive 2015 / 849 so as to include virtual currency exchange platforms and custodian wallet providers . competent authorities should be able to monitor the use of virtual currencies . this would provide a balanced and proportional approach , at the same time safeguarding both the innovative technical advances offered by such currencies and the high degree of transparency attained in the field of alternative finance and social entrepreneurship .


### the credibility of virtual currencies will not rise if they are used for criminal purposes . in this context , anonymity will become more a hindrance than an asset for virtual currencies taking up and their potential benefits to spread . the inclusion of virtual exchange platforms and custodian wallet providers will not entirely address the issue of anonymity attached to virtual currency transactions , as a large part of the virtual currency environment will remain anonymous because users can also transact without exchange platforms or custodian wallet providers . to combat the risks related to the anonymity , national financial intelligence units should be able to associate virtual currency addresses to the identity of the owner of virtual currencies . in addition , the possibility to allow users to self - declare to designated authorities on a voluntary basis should be further assessed . ### the credibility of virtual currencies will not rise if they are used for criminal purposes . in this context , anonymity will become more a hindrance than an asset for virtual currencies taking up and their potential benefits to spread . the inclusion of virtual exchange platforms , custodian wallet providers , issuers , administrators , intermediaries and distributors of virtual currencies , and administrators and providers of systems for online payments will not entirely address the issue of anonymity attached to virtual currency transactions in itself . to combat the risks related to the anonymity , virtual currencies should not be anonymous and national financial intelligence units should be able to associate virtual currency addresses to the identity of the owner of virtual currencies .


### general purpose prepaid cards have legitimate uses and constitute an instrument contributing to financial inclusion . however , anonymous prepaid cards are easy to use in financing terrorist attacks and logistics . it is therefore essential to deny terrorist this means of financing their operations , by further reducing the limits and maximum amounts under which obliged entities are allowed not to apply certain customer due diligence measures provided by directive 2015 / 849 . thus , while having due regard to consumers ' needs in using general purpose prepaid instruments and not preventing the use of such instruments for promoting social and financial inclusion , it is essential to lower the existing thresholds for general purpose anonymous prepaid cards and suppress the customer due diligence exemption for their online use . ### general purpose prepaid cards , which are considered to have a social value , have legitimate uses and constitute an accessible instrument contributing to financial inclusion . however , anonymous prepaid cards are easy to use in financing terrorist attacks and logistics . it is therefore essential to deny terrorist this means of financing their operations , by further reducing the limits and maximum amounts under which obliged entities are allowed not to apply certain customer due diligence measures provided by directive 2015 / 849 . thus , while having due regard to consumers ' needs in using general purpose prepaid instruments for legitimate purposes and not preventing the use of such instruments for promoting social and financial inclusion , it is essential to lower the existing thresholds for general purpose anonymous prepaid cards and suppress the customer due diligence exemption for their online use .


### general purpose prepaid cards have legitimate uses and constitute an instrument contributing to financial inclusion . however , anonymous prepaid cards are easy to use in financing terrorist attacks and logistics . it is therefore essential to deny terrorist this means of financing their operations , by further reducing the limits and maximum amounts under which obliged entities are allowed not to apply certain customer due diligence measures provided by directive 2015 / 849 . thus , while having due regard to consumers’ needs in using general purpose prepaid instruments and not preventing the use of such instruments for promoting social and financial inclusion , it is essential to lower the existing thresholds for general purpose anonymous prepaid cards and suppress the customer due diligence exemption for their online use . ### general purpose prepaid cards have legitimate uses and constitute an instrument contributing to financial inclusion . however , anonymous prepaid cards are easy to use in financing terrorist attacks and logistics . it is therefore essential to deny terrorist this means of financing their operations , by further reducing the limits and maximum amounts under which obliged entities are allowed not to apply certain customer due diligence measures provided by directive 2015 / 849 . thus , while having due regard to consumers’ needs in using general purpose prepaid instruments and not preventing the use of such instruments for promoting social and financial inclusion , it is essential to lower the existing thresholds for general purpose anonymous prepaid cards .


### fius should be able to obtain from any obliged entity all the necessary information relating to their functions . unfettered access to information is essential to ensure that flows of money can be properly traced and illicit networks and flows detected at an early stage . when fius need to obtain additional information from obliged entities based on a suspicion of money laundering , such suspicion may be triggered by a prior suspicious transaction report reported to the fiu , but also through other means such as fiu ' s own analysis , intelligence provided by competent authorities or information held by another fiu . fius should therefore be able to obtain information from any obliged entity , even without a prior report being made by the individual obliged entity . a fiu should also be able to obtain such information on a request made by another union fiu and to exchange the information with the requesting fiu . ### fius should be able to obtain from any obliged entity all the necessary information relating to their functions . unfettered access to information is essential to ensure that flows of money can be properly traced and illicit networks and flows detected at an early stage . when fius need to obtain additional information from obliged entities based on a suspicion of money laundering , such suspicion may be triggered by a prior suspicious transaction report reported to the fiu , but also through other means such as fiu ' s own analysis , intelligence provided by competent authorities or information held by another fiu . fius should therefore be able to obtain the financial , administrative and law enforcement information they require to undertake their functions properly from any obliged entity , even without a prior report being made by the individual obliged entity . a fiu should also be able to obtain such information on a request made by another union fiu and to exchange the information with the requesting fiu .


### delayed access to information by fius and other competent authorities on the identity of holders of bank and payment accounts hampers the detection of transfers of funds relating to terrorism . national data allowing the identification of bank and payments accounts belonging to one person is fragmented and therefore not accessible to fius and other competent authorities in a timely manner . it is therefore essential to establish centralised automated mechanisms , such as a register or data retrieval system in all member states as an efficient means to get timely access to information on the identity of holders of bank and payment accounts , their proxy holders , and their beneficial owners . ### delayed access to information by fius and other competent authorities on the identity of holders of bank and payment accounts and safe deposit boxes , especially anonymous ones , hampers the detection of transfers of funds relating to terrorism . national data allowing the identification of bank and payments accounts and safe deposit boxes belonging to one person is fragmented and therefore not accessible to fius and other competent authorities in a timely manner . it is therefore essential to establish centralised automated mechanisms , such as a register or data retrieval system in all member states as an efficient means to get timely access to information on the identity of holders of bank and payment accounts and safe deposit boxes , their proxy holders , and their beneficial owners .


### in order to respect privacy and protect personal data , such registries should store the minimum data necessary to the performance of aml investigations . the concerned data subjects should be informed that their data are recorded and accessible by fius and should be given a contact point for exercising their rights of access and rectification . when transposing these provisions , member states should set out maximum retention periods for the registration of personal data in registries and provide for their destruction once the information is no longer needed for the stated purpose . access to the registries and databases should be limited on a need to know basis . ### in order to respect privacy and protect personal data , such registries should store the minimum data necessary to the performance of aml investigations or the financing of terrorism . the concerned data subjects should be informed that their data are recorded and accessible by fius and should be given a contact point for exercising their rights of access and rectification . when transposing these provisions , member states should set out maximum retention periods for the registration of personal data in registries and provide for their destruction once the information is no longer needed for the stated purpose . access to the registries and databases should be limited on a need to know basis .


### public access by way of compulsory disclosure of certain information on the beneficial ownership of companies provides additional guarantees to third parties wishing to do business with those companies . certain member states have taken steps or announced their intention to make information contained in registers of beneficial ownership available to the public . the fact that not all member states would make information publicly available or differences in the information made available and its accessibility may lead to different levels of protection of third parties in the union . in a well - functioning internal market , there is a need for coordination to avoid distortions . ### public access by way of compulsory disclosure of certain information on the beneficial ownership of companies provides additional guarantees to third parties wishing to do business with those companies . certain member states have taken steps or announced their intention to make information contained in registers of beneficial ownership available to the public . the fact that not all member states would make information publicly available or differences in the information made available and its accessibility may lead to different levels of protection of third parties in the union . in a well - functioning internal market , there is a need for coordination to avoid distortions and for greater transparency , which is key to maintaining public confidence in the financial system .


### in order to ensure proportionality , the beneficial ownership information in respect of any other trusts than those which consist of any property held by , or on behalf of , a person carrying on a business which consists of or includes the management of trusts , and acting as trustee of a trust in the course of that business with a view to gain profit should only be available to parties holding a legitimate interest . the legitimate interest with respect to money laundering , terrorist financing and the associated predicate offences should be justified by readily available means , such as statutes or mission statement of non - governmental organisations , or on the basis of demonstrated previous activities relevant to the fight against money laundering and terrorist financing or associated predicate offences , or a proven track record of surveys or actions in that field . ### in order to ensure legitimacy and proportionality , the beneficial ownership information in respect of any other trusts than those which consist of any property held by , or on behalf of , a person carrying on a business which consists of or includes the management of trusts , and acting as trustee of a trust in the course of that business with a view to gain profit should only be available to parties holding a legitimate interest . the legitimate interest with respect to money laundering , terrorist financing and the associated predicate offences should be justified by readily available means , such as statutes or mission statement of non - governmental organisations , or on the basis of demonstrated previous activities relevant to the fight against money laundering and terrorist financing or associated predicate offences , or a proven track record of surveys or actions in that field .


### “ ‘ virtual currencies’ means a digital representation of value that is neither issued by a central bank or a public authority , nor necessarily attached to a fiat currency , but is accepted by natural or legal persons as a means of payment and can be transferred , stored or traded electronically” ; ### “ ‘ virtual currencies’ means a digital representation of value that is neither issued by a central bank or a public authority , nor attached to a legally established fiat currency , does not possess a legal status of currency or money , but is accepted by natural or legal persons , as a means of exchange , payment and possibly also for other purposes , and which can be transferred , stored or traded electronically . virtual currencies cannot be anonymous” ;


### member states shall prohibit their credit institutions and financial institutions from keeping anonymous accounts or anonymous passbooks . member states shall , in any event , require that the owners and beneficiaries of existing anonymous accounts or anonymous passbooks be subject to customer due diligence measures as soon as possible and in any event before such accounts or passbooks are used in any way . ### in article 10 , paragraph 1 is replaced by the following : “1 . member states shall prohibit their credit institutions and financial institutions from keeping anonymous accounts , anonymous passbooks or anonymous safe deposit boxes . member states shall , in any event , require that the owners and beneficiaries of existing anonymous accounts , anonymous passbooks or anonymous safe deposit boxes be subject to customer due diligence measures as soon as possible and in any event before such accounts , passbooks or deposit boxes are used in any way” .


### ' 5 . member states shall require that obliged entities apply the customer due diligence measures not only to all new customers but also at appropriate times to existing customers on a risk - sensitive basis , or when the relevant circumstances of a customer change , or when the obliged entity has a duty in the course of the relevant calendar year , to contact the customer for the purpose of reviewing any information related to the beneficial owner , in particular under directive 2011 / 16 / eu . ' ; ### ' 5 . member states shall require that obliged entities apply the customer due diligence measures not only to all new customers but also at appropriate times to existing customers on a risk - sensitive basis , or when the relevant circumstances of a customer change , or when the obliged entity has a duty in the course of the relevant calendar year , to contact the customer for the purpose of reviewing any information related to the beneficial owner , in particular under directive 2011 / 16 / eu . ' ; member states shall request the obliged entity to contact the customer with a view to reviewing any information related to the beneficial owner at the latest by . . . [ one year from the date of entry into force of this amending directive ] .


### ' in the cases referred to in articles 19 to 24 , as well as in other cases of higher risk that are identified by member states or obliged entities , member states shall require obliged entities to apply enhanced customer due diligence measures to manage and mitigate those risks appropriately . ' ; ### ' in the cases referred to in articles 19 to 24 , as well as in other cases of risk that are identified by member states or obliged entities , member states shall require obliged entities to apply enhanced customer due diligence measures to manage and mitigate those risks appropriately . ' ;


### ' 6 . the central register referred to in paragraph 3 shall ensure timely and unrestricted access by competent authorities and fius to all information held in the central register without any restriction and without alerting the entity concerned . it shall also allow timely access by obliged entities when taking customer due diligence measures in accordance with chapter ii . ### ' 6 . the central register referred to in paragraph 3 shall ensure , with a view to guaranteeing efficiency , timely and unrestricted access by competent authorities and fius to all information held in the central register without any restriction and without alerting the entity concerned . it shall also allow timely and unrestricted access by obliged entities when taking customer due diligence measures in accordance with chapter ii .


### competent authorities granted access to the central register referred to in paragraph 3 shall be those public authorities with designated responsibilities for combating money laundering or terrorist financing , including tax authorities and authorities that have the function of investigating or prosecuting money laundering , associated predicate offences and terrorist financing , tracing and seizing or freezing and confiscating criminal assets . ' ; ### competent authorities granted access to the central register referred to in paragraph 3 shall be those public authorities with designated responsibilities for combating money laundering or terrorist financing , including tax authorities , supervisory authorities and authorities that have the function of investigating or prosecuting money laundering , associated predicate offences and terrorist financing , tracing and seizing or freezing and confiscating criminal assets . ' :


### member states shall cooperate among themselves and with the commission in order to implement the different types of access in accordance with paragraph 5 . ' ; ### member states shall cooperate among themselves and with the commission in order to implement the different types of access in accordance with paragraph 5 and taking into account the latest international standards applicable . ' ;


### member states shall ensure that this article applies to trusts and other types of legal arrangements having a structure or functions similar to trusts , such as , inter alia , fiducie , treuhand or fideicomiso . ### member states shall ensure that this article applies to trusts and other types of legal arrangements having a structure or functions similar to trusts , such as , inter alia , fiducie , treuhand , waqf or fideicomiso , and all existing or future legal arrangements , which are similar in terms of structure or function .


### ' 1 . member states shall ensure that this article applies to trusts and other types of legal arrangements having a structure or functions similar to trusts , such as , inter alia , fiducie , treuhand or fideicomiso . ### ' 1 . member states shall ensure that this article applies to trusts and other types of legal instrument or legal arrangements having a structure or functions similar to trusts , such as , inter alia , fiducie , treuhand or fideicomiso .