### underpinning the risk - based approach is a need for member states to identify , understand and mitigate the money laundering and terrorist financing risks it faces . the importance of a supra - national approach to risk identification has been recognised at international level , and the european supervisory authority , established by regulation no 1093 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 78 / ec29 ; the european supervisory authority , established by regulation no 1094 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 79 / ec30 ; and the european supervisory authority , established by regulation no 1095 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 77 / ec31 , should be tasked with issuing an opinion on the risks affecting the financial sector . __________________ 29 oj l 331 , 15 . 12 . 2010 , p . 12 . 30 oj l 331 , 15 . 12 . 2010 , p . 48 . 31 oj l 331 , 15 . 12 . 2010 , p . 84 . ### underpinning the risk - based approach is a need for member states and the union to identify , understand and mitigate the money laundering and terrorist financing risks it faces . the importance of a supra - national approach to risk identification has been recognised at international level , and the european supervisory authority , established by regulation no 1093 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 78 / ec29 ; the european supervisory authority , established by regulation no 1094 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 79 / ec30 ; and the european supervisory authority , established by regulation no 1095 / 2010 of the european parliament and of the council of 24 november 2010 establishing a european supervisory authority , amending decision no 716 / 2009 / ec and repealing commission decision 2009 / 77 / ec31 , should be tasked with issuing an opinion on the risks affecting the financial sector . __________________ 29 oj l 331 , 15 . 12 . 2010 , p . 12 . 30 oj l 331 , 15 . 12 . 2010 , p . 48 . 31 oj l 331 , 15 . 12 . 2010 , p . 84 .


### the results of risk assessments at member state level should , where appropriate , be made available to obliged entities to enable them to identify , understand and mitigate their own risks . ### the results of risk assessments should , where appropriate , be made available in a timely manner to obliged entities to enable them to identify , understand and mitigate their own risks .


### in order to better understand and mitigate risks at european union level , member states should share the results of their risk assessments with each other , the commission and eba , eiopa and esma , where appropriate . ### in order to better understand and mitigate risks at european union level , the commission should share the results of the risk assessments with member states and eba , eiopa and esma , where appropriate .


### this is particularly true of business relationships with individuals holding , or having held , important public positions , particularly those from countries where corruption is widespread . such relationships may expose the financial sector in particular to significant reputational and legal risks . the international effort to combat corruption also justifies the need to pay special attention to such cases and to apply appropriate enhanced customer due diligence measures in respect of persons who hold or have held prominent functions domestically or abroad and senior figures in international organisations . ### this is particularly true of relationships with individuals holding , or having held , important public positions , particularly those from countries where corruption is widespread . such relationships may expose the financial sector in particular to significant reputational and legal risks . the international effort to combat corruption also justifies the need to pay special attention to such cases and to apply appropriate enhanced customer due diligence measures in respect of persons who hold or have held prominent functions domestically or abroad and senior figures in international organisations .


### certain aspects of the implementation of this directive involve the collection , analysis , storage and sharing of data . the processing of personal data should be permitted in order to comply with the obligations laid down in this directive , including carrying out of customer due diligence , ongoing monitoring , investigation and reporting of unusual and suspicious transactions , identification of the beneficial owner of a legal person or legal arrangement , sharing of information by competent authorities and sharing of information by financial institutions . the personal data collected should be limited to what is strictly necessary for the purpose of complying with the requirements of this directive and not further processed in a way inconsistent with directive 95 / 46 / ec . in particular , further processing of personal data for commercial purposes should be strictly prohibited . ### certain aspects of the implementation of this directive involve the collection , analysis , storage and sharing of data . the processing of personal data should be permitted in order to comply with the obligations laid down in this directive , including carrying out of customer due diligence , ongoing monitoring , investigation and reporting of unusual and suspicious transactions , identification of the beneficial owner of a legal person or legal arrangement , identification of a politically exposed person , sharing of information by competent authorities and sharing of information by financial institutions . the personal data collected should be limited to what is strictly necessary for the purpose of complying with the requirements of this directive and not further processed in a way inconsistent with directive 95 / 46 / ec . in particular , further processing of personal data for commercial purposes should be strictly prohibited .


### the rights of access of the data subject are applicable to the personal data processed for the purpose of this directive . however , access by the data subject to information contained in a suspicious transaction report would seriously undermine the effectiveness of the fight against money laundering and terrorist financing . limitations to this right in accordance with the rules laid down in article 13 of directive 95 / 46 / ec may therefore be justified . ### the rights of access of the data subject are applicable to the personal data processed for the purpose of this directive . however , access by the data subject to information contained in a suspicious transaction report would seriously undermine the effectiveness of the fight against money laundering and terrorist financing . limitations to this right in accordance with the rules laid down in article 13 of directive 95 / 46 / ec may therefore be justified . however , such limitations have to be counterbalanced by by effective powers of data protection authorities , including the indirect access powers , as laid down in directive 95 / 46 / ec to investigate , either ex officio or based on a complaint , any claims as regards problems with personal data processing . this should include particularly access to the data file at the obliged entity .


### feedback should , where practicable , be made available to obliged entities on the usefulness and follow - up of the suspicious transactions reports they present . to make this possible , and to be able to review the effectiveness of their systems to combat money laundering and terrorist financing member states should keep and improve the relevant statistics . to further enhance the quality and consistency of the statistical data collected at union level , the commission should keep track of the eu - wide situation with respect to the fight against money laundering and terrorist financing and publish regular overviews . ### feedback should , where practicable , be made available to obliged entities on the usefulness and follow - up of the suspicious transactions reports they present . to make this possible , and to be able to review the effectiveness of their systems to combat money laundering and terrorist financing member states should keep and improve the relevant statistics . to further enhance the quality and consistency of the statistical data collected at union level , the commission should keep track of the eu - wide situation with respect to the fight against money laundering and terrorist financing and publish regular overviews . in particular , the commission should keep track of the use and involvement of 200 and 500 eur notes in money laundering and terrorist financing . the commission should assess the relevance of these notes for , on the one hand , money supply of the real economy and for , on the other hand , illicit activities . the assessment should be carried out within 2 years from the date of entry into force of this directive .


### feedback should , where practicable , be made available to obliged entities on the usefulness and follow - up of the suspicious transactions reports they present . to make this possible , and to be able to review the effectiveness of their systems to combat money laundering and terrorist financing member states should keep and improve the relevant statistics . to further enhance the quality and consistency of the statistical data collected at union level , the commission should keep track of the eu - wide situation with respect to the fight against money laundering and terrorist financing and publish regular overviews . ### feedback should , where practicable , be made available to obliged entities on the usefulness and follow - up of the suspicious transactions reports they present . to make this possible , and to be able to review the effectiveness of their systems to combat money laundering and terrorist financing member states should keep and improve the relevant statistics . to further enhance the quality and consistency of the statistical data collected at union level , the commission should keep track of the eu - wide situation with respect to the fight against money laundering and terrorist financing and publish regular overviews . the commission should also include in its overviews an evaluation of national risk assessments . the first overview by the commission should be carried out within one year from the date of entry into force of this directive .


### this directive respects the fundamental rights and observes the principles recognised by the charter of fundamental rights of the european union , in particular , the respect for private and family life , the right to protection of personal data , the freedom to conduct a business , the prohibition of discrimination , the right to an effective remedy and to a fair trial , and the right of defence . ### this directive respects the fundamental rights and observes the principles recognised by the charter of fundamental rights of the european union , in particular , the respect for private and family life , the presumption of innocence , the right to protection of personal data , the freedom to conduct a business , the prohibition of discrimination , the right to an effective remedy and to a fair trial , and the right of defence .


### creation , operation or management of trusts , companies or similar structures ; ### creation , operation or management of trusts , foundations , mutuals , companies or similar structures ;


### all offences , including tax crimes related to direct taxes and indirect taxes , which are punishable by deprivation of liberty or a detention order for a maximum of more than one year or , as regards those states which have a minimum threshold for offences in their legal system , all offences punishable by deprivation of liberty or a detention order for a minimum of more than six months ; ### all offences , including tax offences related to direct taxes and indirect taxes , which are punishable by deprivation of liberty or a detention order for a maximum of more than one year or , as regards those states which have a minimum threshold for offences in their legal system , all offences punishable by deprivation of liberty or a detention order for a minimum of more than six months ; this linguistic change is proposed to align in particular the english language version with other language versions making clear that criminal law tax offences are addressed .


### the natural person who exercises control over 25 % or more of the property of a legal arrangement or entity ; and ### the natural person who exercises control over 10 % or more of the property of a legal arrangement or entity ; and


### where the future beneficiaries have already been determined , the natural person who is the beneficiary of 25 % or more of the property of a legal arrangement or entity ; or ### where the future beneficiaries have already been determined , the natural person who is the beneficiary of 10 % or more of the property of a legal arrangement or entity ; or


### in the case of legal entities , such as foundations , and legal arrangements , such as trusts , which administer and distribute funds : ### in the case of legal entities , such as foundations , and legal arrangements , such as trusts or mutuals , which administer and distribute funds :


### members of the administrative , management or supervisory bodies of state owned enterprises . ### senior members of the administrative , management or supervisory bodies of state owned enterprises .


### 1 : the member states may adopt or retain in force stricter provisions in the field covered by this directive to prevent money laundering and terrorist financing . ### 1 : the member states may adopt or retain in force stricter provisions in the field covered by this directive to prevent money laundering and terrorist financing , provided that such provisions are in full compliance with the union legal order , especially as regards union data protection rules and the protection of fundamental rights as enshrined in the charter of fundamental rights of the european union .


### the european banking authority , european insurance and occupational pensions authority and european securities and markets authority shall provide a joint opinion on the money laundering and terrorist financing risks affecting the internal market . ### the commission shall produce an assessment on the money laundering and terrorist financing risks affecting the internal market . in order to produce such assessment , the commission shall consult the member states , shall take into account the joint opinion provided by the european banking authority , the european insurance and occupational pensions authority , the european securities and markets authority , and shall consult the eu fius ' platform , the edps , article 29 working party , europol and other relevant authorities .


### the european banking authority , european insurance and occupational pensions authority and european securities and markets authority shall provide a joint opinion on the money laundering and terrorist financing risks affecting the internal market . ### the commission shall produce an assessment on the money laundering and terrorist financing risks affecting the internal market . in order to produce such assessment , the commission will consult the member states , the european banking authority , the european insurance and occupational pensions authority , the european securities and markets authority , the edps , article 29 working party , europol and other relevant authorities .


### each member state shall take appropriate steps to identify , assess , understand and mitigate the money laundering and terrorist financing risks affecting it , and keep the assessment up - to - date . ### each member state shall take appropriate steps to identify , assess , understand and mitigate the money laundering and terrorist financing risks affecting it , as well as data protection concerns in that regard , and keep the assessment up - to - date .


### make appropriate information available to obliged entities to carry out their own money laundering and terrorist financing risk assessments . ### make appropriate information available to obliged entities in a timely manner to carry out their own money laundering and terrorist financing risk assessments .


### member states shall make the results of their risk assessments available to the other member states , the commission , and eba , eiopa and esma upon request . ### member states shall make the results of their risk assessments available to the other member states , the commission , and eba , eiopa and esma upon request . a summary of the assessment shall be publicly available . that summary shall not contain classified information .


### the assessments referred to in paragraph 1 shall be documented , kept up to date and be made available to competent authorities and self - regulatory bodies . ### the assessments referred to in paragraph 1 shall be documented , kept up to date and be made available to competent authorities and self - regulatory bodies upon request .


### identifying the beneficial owner and taking reasonable measures to verify his identity so that the institution or person covered by this directive is satisfied that it knows who the beneficial owner is , including , as regards legal persons , trusts and similar legal arrangements , taking reasonable measures to understand the ownership and control structure of the customer ; ### further to the identification of the beneficial owners as listed in the public registry pursuant to article 29 , taking reasonable measures to verify his or her identity so that the institution or person covered by this directive is fully satisfied that it knows who the beneficial owner is , including , as regards legal persons , trusts , foundations , holdings and all other similar existing or future legal arrangements , taking all necessary measures to understand the ownership and control structure of the customer ;


### identifying the beneficial owner and taking reasonable measures to verify his identity so that the institution or person covered by this directive is satisfied that it knows who the beneficial owner is , including , as regards legal persons , trusts and similar legal arrangements , taking reasonable measures to understand the ownership and control structure of the customer ; ### further to the identification of the beneficial owner as listed in a register pursuant to article 29 , taking reasonable measures to verify his identity so that the institution or person covered by this directive is satisfied that it knows who the beneficial owner is , including , as regards legal persons , trusts , foundations , mutuals , holdings and all other similar existing or future legal arrangements , taking all necessary measures to understand the ownership and control structure of the customer ;


### by way of derogation from paragraph 1 , member states may allow the verification of the identity of the customer and the beneficial owner to be completed during the establishment of a business relationship if this is necessary not to interrupt the normal conduct of business and where there is little risk of money laundering or terrorist financing occurring . in such situations these procedures shall be completed as soon as practicable after the initial contact . ### by way of derogation from paragraph 1 , member states may , after informing the commission , allow the verification of the identity of the customer and the beneficial owner to be completed during the establishment of a business relationship if this is necessary not to interrupt the normal conduct of business and where there is little risk of money laundering or terrorist financing occurring . in such situations these procedures shall be completed as soon as practicable after the initial contact


### when assessing the money laundering and terrorist financing risks relating to types of customers , countries or geographic areas , and particular products , services , transactions or delivery channels , member states and obliged entities shall take into account at least the factors of potentially lower risk situations set out in annex ii . ### when assessing the money laundering and terrorist financing risks relating to types of customers , countries or geographic areas , and particular products , services , transactions or delivery channels , member states and obliged entities shall take into account at least the factors relating to customer and product , service , transaction or delivery channel as potentially lower risk situations set out in annex ii .


### member states shall require obliged entities to examine , as far as reasonably possible , the background and purpose of all complex , unusual large transactions , and all unusual patterns of transactions , which have no apparent economic or lawful purpose . in particular , they shall increase the degree and nature of monitoring of the business relationship , in order to determine whether those transactions or activities appear unusual or suspicious . ### member states shall require obliged entities to examine the background and purpose of all complex , unusual large transactions , and all unusual patterns of transactions , which have no apparent economic or lawful purpose , or which constitute tax crimes amounting to criminal activity within the meaning of article 3 , or which are constitutive of aggressive tax planning as defined by commission recommendation c 8806 . in particular , they shall increase the degree and nature of monitoring of the business relationship , in order to determine whether those transactions or activities appear unusual or suspicious . in case an obliged entity determines such unusual or suspicious transaction or activity , it shall without delay inform the fius of all member states that might be concerned .


### member states shall require obliged entities to examine , as far as reasonably possible , the background and purpose of all complex , unusual large transactions , and all unusual patterns of transactions , which have no apparent economic or lawful purpose . in particular , they shall increase the degree and nature of monitoring of the business relationship , in order to determine whether those transactions or activities appear unusual or suspicious . ### member states shall require obliged entities to examine , the background and purpose of all complex , unusual large transactions , and all unusual patterns of transactions , which have no apparent economic or lawful purpose , or which constitute tax offences within the meaning of article 3 . in particular , they shall increase the degree and nature of monitoring of the business relationship , in order to determine whether those transactions or activities appear unusual or suspicious .


### when assessing the money laundering and terrorist financing risks , member states and obliged entities shall take into account at least the factors of potentially higher - risk situations set out in annex iii . ### when assessing the money laundering and terrorist financing risks , member states and obliged entities shall take into account at least the factors relating to customer and product , service , transaction or delivery channel as potentially higher - risk situations set out in annex iii .


### the measures referred to in articles 18 , 19 and 20 shall also apply to family members or persons known to be close associates of such politically exposed persons . ### the measures referred to in articles 18 , 19 and 20 with the exception of article 19a shall also apply to family members or persons that evidence indicates are close associates of such politically exposed persons .


### where a person referred to in articles 18 , 19 and 20 has ceased to be entrusted with a prominent public function by a member state or a third country or with a prominent function by an international organisation , obliged entities shall be required to consider the continuing risk posed by that person and to apply such appropriate and risk - sensitive measures until such time as that person is deemed to pose no further risk . this period of time shall not be less than 18 months . ### where a person referred to in articles 18 , 19 and 20 has ceased to be entrusted with a prominent public function by a member state or a third country or with a prominent function by an international organisation , obliged entities shall be required to consider the continuing risk posed by that person and to apply such appropriate and risk - sensitive measures until such time as that person is deemed to pose no further risk . this period of time shall not be less than 12 months .


### the effective implementation of requirements referred to in point is supervised at group level by a competent authority . ### the effective implementation of requirements referred to in point is supervised at group level by a home competent authority in cooperation with host competent authorities .


### member states shall ensure that the information referred to in paragraph 1 of this article can be accessed in a timely manner by competent authorities and by obliged entities . ### regarding trusts or other types of legal entity and arrangements with a similar structure and function of trusts , the information shall also include the identity of the settlor , of the trustee , of the protector , of the beneficiaries or class of beneficiaries , and of any other natural person exercising effective control over the trust . member states shall ensure that trustees disclose their status to obliged entities when , as a trustee , the trustee forms a business relationship or carries out an occasional transaction above the threshold set out in points , and of article 10 .


### the fiu shall be established as a central national unit . it shall be responsible for receiving , analysing and disseminating to the competent authorities , disclosures of information which concern potential money laundering or associated predicate offences , potential terrorist financing or are required by national legislation or regulation . the fiu shall be provided with adequate resources in order to fulfil its tasks . ### the fiu shall be established as a central national unit . it shall be responsible for receiving , analysing and disseminating to the competent authorities , disclosures of information which concern potential money laundering or associated predicate offences , potential terrorist financing or are required by national legislation or regulation . the fiu shall be provided with adequate financial , technical and human resources in order to fulfil its tasks . member states shall ensure that the fiu is free from undue interference .


### member states shall take all appropriate measures in order to protect employees of the obliged entity who report suspicions of money laundering or terrorist financing either internally or to the fiu from being exposed to threats or hostile action . ### member states shall ensure that individuals , including employees and representatives of the obliged entity who report suspicions of money laundering or terrorist financing either internally or to the fiu are duly protected from being exposed to threats or hostile action , adverse treatment or adverse consequence . member states shall guarantee legal aid free of charge for such persons and shall provide secure communication channels for persons to report suspicions of money laundering or terrorist financing .


### the prohibition laid down in paragraph 1 shall not include disclosure to the competent authorities of member states , including the self - regulatory bodies , or disclosure for law enforcement purposes . ### the prohibition laid down in paragraph 1 shall not include disclosure to the competent authorities of member states , including the self - regulatory bodies , data protection authorities or disclosure for law enforcement purposes .


### for the purposes of the first subparagraph , a ‘ network’ shall mean the larger structure to which the person belongs and which shares common ownership , management or compliance control . ### for the purposes of the first subparagraph , a ' network ' shall mean the larger structure to which the person belongs and which shares common ownership , management , standards , methods or compliance control .


### in the case of the customer due diligence , a copy or the references of the evidence required , for a period of five years after the business relationship with their customer has ended . upon expiration of this period , personal data shall be deleted unless otherwise provided for by national law , which shall determine under which circumstances obliged entities may or shall further retain data . member states may allow or require further retention only if necessary for the prevention , detection or investigation of money laundering and terrorist financing . the maximum retention period after the business relationship has ended shall not exceed ten years ; ### in the case of the customer due diligence , a copy or the references of the evidence required , for a period of five years after the business relationship with their customer has ended or after the date of the occasional transaction . upon expiration of this period , personal data shall be deleted unless otherwise provided for by national law , which shall determine under which circumstances obliged entities may or shall further retain data . member states may allow or require further retention only if necessary for the prevention , detection or investigation of money laundering and terrorist financing . the maximum retention period after the business relationship has ended shall not exceed ten years ;


### in respect of the obliged entities referred to in article 2 , , and , member states shall ensure that competent authorities take the necessary measures to prevent criminals or their associates from holding or being the beneficial owner of a significant or controlling interest , or holding a management function in those obliged entities . ### in respect of the obliged entities referred to in article 2 , , and , member states shall ensure that competent authorities and self - regulatory bodies take the necessary measures to prevent criminals or their associates from holding or being the beneficial owner of a significant or controlling interest , or holding a management function in those obliged entities .


### member states shall ensure that policy makers , the fiu , law enforcement authorities , supervisors and other competent authorities involved in anti - money laundering and combating terrorist financing have effective mechanisms to enable them to co - operate and co - ordinate domestically concerning the development and implementation of policies and activities to combat money laundering and terrorist financing . ### member states shall ensure that policy makers , the fiu , law enforcement authorities , supervisors , data protection authorities and other competent authorities involved in anti - money laundering and combating terrorist financing have effective mechanisms to enable them to co - operate and co - ordinate domestically concerning the development and implementation of policies and activities to combat money laundering and terrorist financing .


### the competent authorities shall provide eba , eiopa and esma with all the information necessary to carry out their duties under this directive . ### without prejudice to data protection rules , the competent authorities shall provide eba , eiopa and esma with all the relevant information necessary to carry out their duties under this directive .


### member states shall ensure that their fius co - operate with each other to the greatest extent possible irrespective of whether they are administrative , law enforcement or judicial or hybrid authorities . ### member states shall ensure that their fius co - operate with each other to the greatest extent possible irrespective of whether they are administrative , law enforcement or judicial or hybrid authorities , without prejudice to union data protection rules .


### a public statement which indicates the natural or legal person and the nature of the breach ; ### a public statement which indicates the natural or legal person and the nature of the breach , if necessary and proportionate after a case by case evaluation ;


### for the purpose of point , where the legal person is a subsidiary of a parent undertaking , the relevant total annual turnover shall be the total annual turnover resulting from the consolidated account of the ultimate parent undertaking in the preceding business year . ### for the purpose of point , where the legal person is a subsidiary of a parent undertaking , the relevant total annual turnover shall be the total annual turnover resulting from the account of the subsidiary .


### member states shall ensure that competent authorities publish any sanction or measure imposed for breach of the national provisions adopted in the implementation of this directive without undue delay including information on the type and nature of the breach and the identity of persons responsible for it , unless such publication would seriously jeopardise the stability of financial markets . where publication would cause a disproportionate damage to the parties involved , competent authorities shall publish the sanctions on an anonymous basis . ### member states shall ensure that competent authorities publish any sanction or measure imposed for breach of the national provisions adopted in the implementation of this directive , if necessary and proportionate after a case by case evaluation , without undue delay including information on the type and nature of the breach and the identity of persons responsible for it . where publication would cause a disproportionate damage to the parties involved , competent authorities may publish the sanctions on an anonymous basis .


### eba , eiopa , and esma shall issue guidelines addressed to competent authorities in accordance with article 16 of regulation no 1093 / 2010 , of regulation no 1094 / 2010 and of regulation no 1095 / 2010 on types of administrative measures and sanctions and level of administrative pecuniary sanctions applicable to obliged entities referred to in article 2 and . these guidelines shall be issued within 2 years of the date of entry into force of this directive . ### eba , eiopa , and esma shall issue guidelines addressed to competent authorities in accordance with article 16 of regulation no 1093 / 2010 , of regulation no 1094 / 2010 and of regulation no 1095 / 2010 on types of administrative measures and sanctions and level of administrative pecuniary sanctions applicable to obliged entities referred to in article 2 and . these guidelines shall be issued within one year of the date of entry into force of this directive .


### third countries having effective anti - money laundering / combating terrorist financing systems ; ### third countries identified by credible sources , such fatf public statements , mutual evaluation or detailed assessment reports or published follow - up reports , as having effective anti - money laundering / combating terrorist financing systems ;


### non - face - to - face business relationships or transactions ; ### non - face - to - face business relationships or transactions , without certain safeguards , e . g . electronic signatures ;


### in order to enhance consistency and comparability of non - financial information disclosed throughout the union , companies should be required to include in their annual report a non - financial statement containing information relating to at least environmental matters , social and employee - related matters , respect for human rights , anti - corruption and bribery matters . such statement should include a description of the policies , results , and the risks related to those matters . ### in order to enhance consistency and comparability of non - financial information disclosed throughout the union , companies should be required to include in their annual report a non - financial statement containing information relating to at least environmental matters , social and employee - related matters , respect for human rights , anti - corruption and bribery matters . such statement should include a description of the policies , results , and the risks related to those matters , taking into account the companies ' complete supply chain .


### for companies whose average number of employees during the financial year exceeds 500 and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , including : ### for companies whose average number of employees during the financial year exceeds 250 and , on their balance sheet dates , exceed either a balance sheet total of eur 17 , 5 million or a net turnover of eur 35 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , taking into account the company ' s complete supply chain , including :


### the risks related to these matters and how the company manages those risks . ### the risks related to these matters linked to the company ' s operations , which are likely to cause , or have caused , severe adverse social , environmental and human rights ' impacts ; and how the company manages those risks .


### for parent undertakings of undertakings to be consolidated that together exceed an average number of 500 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , including the following : ### for parent undertakings of undertakings to be consolidated that together exceed an average number of 250 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 17 , 5 million or a net turnover of eur 35 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , taking into account the company ' s complete supply chain , including the following :


### in providing such information the company may rely on national , eu - based or international frameworks and , if so , shall specify which frameworks it has relied upon . ### in providing such information the company should take into account its responsibility to respect rights and values protected by norms of international law . in this respect the company shall apply the guiding principles on business and human rights implementing the united nations ' protect , respect and remedy ' framework and the organisation for economic co - operation and development guidelines for multinational enterprises . in addition , the company may rely on national , eu - based or international frameworks and , if so , shall specify which frameworks it has relied upon . this provision shall apply without prejudice to the requirements of this directive or to other european union legislation or guidance containing more specific rules for companies ' non - financial disclosure .


### in providing such information the consolidated annual report may rely on national , eu - based or international frameworks and if so , shall specify which frameworks it has relied upon . ### in providing such information the company should take into account its responsibility to respect rights and values protected by norms of international law . in this respect the company shall apply the guiding principles on business and human rights implementing the united nations ' protect , respect and remedy ' framework and the organisation for economic co - operation and development guidelines for multinational enterprises . in addition , the company may rely on national , eu - based or international frameworks and , if so , shall specify which frameworks it has relied upon . this provision shall apply without prejudice to the requirements of this directive or to other european union legislation or guidance containing more specific rules for companies ' non - financial disclosure .


### the agency should contribute to the creation and effective functioning of a single european railway area without frontiers and guaranteeing a high level of safety while improving the competitive position of the railway sector . that should be attained by contributing , on technical matters , to the implementation of european union legislation by enhancing the level of interoperability of railway systems and to developing a common approach to safety on the european railway system . the agency should also perform the role of european authority responsible for issuing authorisations for placing on the market for railway vehicles and for types of vehicles , safety certificates for railway undertakings and authorisations for placing in service of trackside control - command and signalling sub - systems . moreover , it should monitor national railway rules and the performance of national authorities acting in the railway interoperability and safety fields . ### the agency should contribute to the creation and effective functioning of a single european railway area without frontiers and guaranteeing a high level of safety while improving the competitive position of the railway sector . that should be attained by contributing , on technical matters , to the implementation of european union legislation by enhancing the level of interoperability of railway systems and to developing a common approach to safety on the european railway system . the agency should perform the role of a one - stop shop at european level for issuing authorisations for placing in service railway vehicles and for types of vehicles , safety certificates for railway undertakings and authorisations for placing in service of railway infrastructure , trackside control - command and signalling , energy and infrastructure sub - systems . moreover , it should monitor national railway rules and the performance of national authorities acting in the railway interoperability and safety fields . this requires a clear distribution of tasks and responsibilities between the agency and the national safety authorities . the agency should use the valuable expertise , local knowledge and experience of national safety authorities and delegate specific tasks and responsibilities to national safety authorities on the basis of contractual agreements referred to in regulation [ . . . ] [ regulation on the european railway agency ] but have the exclusive right to take binding decisions in the field of railway safety and authorisation described above .


### the agency , while performing its tasks , and particularly in relation to drafting recommendations , should take upmost account of external railway expertise . this expertise should predominantly consist of professionals from the railway sector and the relevant national authorities . they should form competent and representative working parties of the agency . ### the agency , while performing its tasks , and particularly in relation to drafting recommendations , should take upmost account of external railway expertise . this expertise should consist of professionals from the railway sector , including representative bodies , independent notified conformity assessment bodies and the relevant national authorities . they should form competent and representative working parties of the agency .


### given the importance of the european rail traffic management system for the smooth development of the single european railway area and its safety , and taking into account its fragmented development to date , it is necessary to strengthen its overall coordination at the union level . therefore the agency , as the most competent union body , should be given a more prominent role in this field to ensure consistent development of the ertms , to contribute to ensuring that ertms equipment complies with the specifications in force and to ensure that ertms - related european research programmes are coordinated with the development of ertms technical specifications . moreover , in order to make the procedures for issuing authorisations for placing in service of trackside control - command and signalling sub - systems more efficient and impartial , it is essential to migrate towards a single authorisation valid in the union and issued by the agency . the revised directive … [ railway interoperability directive ] provides a basis for this . ### given the importance of the european rail traffic management system for the smooth development of the single european railway area and its safety , and taking into account the failure of the development and deployment to date , it is necessary to strengthen its overall coordination at the union level . the objective of achieving interoperability and harmonisation of train control and signalling system across the eu is currently seriously undermined by a multitude of diverging national versions of ertms . therefore the agency , as the most competent union body , should be given a more prominent role in this field to ensure consistent development of the ertms , to contribute to ensuring that ertms equipment complies with the specifications in force and to ensure that ertms - related european research programmes are coordinated with the development of ertms technical specifications . moreover , in order to make the procedures for issuing authorisations for placing in service of trackside control - command and signalling sub - systems more efficient and impartial , it is essential to migrate towards a single authorisation valid in the union and issued by the agency . the revised directive … [ railway interoperability directive ] provides a basis for this .


### performance , organisation and decision - making procedures in the field of railway interoperability and safety vary substantially among the national safety authorities and notified conformity assessment bodies , with a detrimental effect to smooth operation of the single european rail area . in particular , small and medium companies wishing to enter the railway market in another member state can be negatively affected . therefore , a strengthened coordination with a view to greater harmonisation at the union level is essential . to this end , the agency should monitor the national safety authorities and notified conformity assessment bodies through audits and inspections . ### performance , organisation and decision - making procedures in the field of railway interoperability and safety vary substantially among the national safety authorities and notified conformity assessment bodies , with a detrimental effect to smooth operation of the single european rail area . in particular , small and medium companies wishing to enter the railway market in another member state can be negatively affected . therefore , a strengthened coordination with a view to greater harmonisation at the union level is essential . to this end , the agency should monitor the national safety authorities through audits and inspections . monitoring of the notified conformity assessment bodies should be carried out by the national accreditation bodies in accordance with regulation 765 / 2008 / ec art . 5 .


### in order to guarantee the transparency of the management board ' s decisions , representatives of the sectors concerned should attend its meetings , but without the right to vote , that right being reserved for the representatives of public authorities who are accountable to the democratic control authorities . the representatives of the sector should be appointed by the commission on the basis of their representativeness at union level of railway undertakings , infrastructure managers , railway industry , workers unions , passengers and freight customers . ### in order to guarantee the transparency of the management board ' s decisions , representatives of the sectors concerned should attend its meetings , but without the right to vote , that right being reserved for the representatives of public authorities who are accountable to the democratic control authorities . the representatives of the sector should be appointed by the commission on the basis of their representativeness at union level of railway undertakings , infrastructure managers , railway industry , notified bodies , designated bodies , workers unions , passengers and , in particular , passengers with reduced mobility as well as freight customers .


### it is necessary to ensure that parties affected by decisions made by the agency enjoy the necessary remedies in an independent and impartial manner . an appropriate appeal mechanism should be set up so that decisions of the executive director can be subject to appeal to a specialised board of appeal , whose decisions are , in turn , open to action before the court of justice . ### it is necessary to ensure that parties affected by decisions made by the agency enjoy the necessary remedies in an independent and impartial manner . an appropriate appeal mechanism should be set up so that decisions of the executive director can be subject to appeal to a specialised board of appeal that acts in complete independence from the commission , the agency , national safety authorities and any actor in the railway sector , whose decisions are , in turn , open to action before the court of justice .


### the agency shall appoint to the working parties professionals from the railway sector from the list referred to in paragraph 3 . it shall ensure adequate representation of those sectors of the industry and of those users which could be affected by measures the commission may propose on the basis of the recommendations addressed to it by the agency . ### the agency shall appoint to the working parties professionals from the railway sector from the list referred to in paragraph 3 and from the coordination body of the notified conformity assessment bodies . it shall ensure adequate representation of those sectors of the industry and of those users which could be affected by measures the commission may propose on the basis of the recommendations addressed to it by the agency .


### whenever the work of such working parties has a direct impact on the working conditions , health and safety of workers in the industry , representatives from the workers ' organisations shall participate in the relevant working parties as full members . ### whenever the work of such working parties has an impact on the working conditions , health and safety of workers in the industry , representatives from the workers ' organisations shall participate in the relevant working parties as full members .


### whenever the work provided for in articles 11 and 15 has a direct impact on rail freight customers and passengers , the agency shall consult the organisations representing them . the list of organisations to be consulted shall be drawn up by the commission with the assistance of the committee referred to in article 75 . ### whenever the work provided for in articles 11 and 15 has a direct impact on rail freight customers and passengers , the agency shall consult the organisations representing them , including in particular representatives of passengers with reduced mobility . the list of organisations to be consulted shall be drawn up by the commission with the assistance of the committee referred to in article 75 .


### the agency shall develop and maintain the technical tools for managing the different versions of the telematics applications ' specifications . ### the agency shall develop and maintain the technical tools for managing the different versions of the telematics applications ' specifications and enforce the compatibility , both downwards and upwards , of the these different versions .


### if the agency considers that the deficiencies referred to in paragraph 3 prevent the national safety authority concerned from effectively performing its tasks in relation to railway safety and interoperability , the agency shall recommend to the national safety authority to take appropriate steps within a time limit to be defined taking into account the importance of the deficiency . ### if the agency considers that the deficiencies referred to in paragraph 3 prevent the national body concerned from effectively performing its tasks in relation to railway safety and interoperability , the agency shall recommend to the national body to take appropriate steps within a time limit to be defined taking into account the importance of the deficiency .


### the agency shall monitor the overall safety performance of the railway system . the agency may in particular seek the assistance of the networks referred to in article 34 , including collection of data . the agency shall also draw on the data collected by eurostat and shall cooperate with eurostat to prevent any duplication of work and to ensure methodological consistency between the common safety indicators and the indicators used in other modes of transport . ### the agency shall monitor the overall safety performance of the railway system and the safety regulatory framework . the agency may in particular seek the assistance of the networks referred to in article 34 , including collection of data . the agency shall also draw on the data collected by eurostat and shall cooperate with eurostat to prevent any duplication of work and to ensure methodological consistency between the common safety indicators and the indicators used in other modes of transport .


### at the commission ' s request , the agency shall issue recommendations on how to improve the interoperability of the railway systems , in particular by facilitating coordination between railway undertakings and infrastructure managers , or between infrastructure managers . ### the agency shall develop a common occurrence reporting and monitoring system .


### the agency shall establish one or more boards of appeal . ### one or more boards of appeal shall be established in complete independence from the agency , the commission , national safety authorities and any actor of the railway sector .


### it is therefore necessary to ensure a more level playing field for undertakings operating in the internal market and to improve the conditions for consumers to exercise the rights they derive from the internal market . it is also appropriate to increase legal certainty and to reduce the differences between the member states as to the national rules governing actions for damages for infringements of european competition law and , when applied in parallel to the latter , national competition law . an approximation of these rules will also help to prevent the emergence of wider differences between the member states ' rules governing actions for damages in competition cases . ### it is therefore necessary to ensure a more level playing field for undertakings operating in the internal market and to improve the conditions for consumers to exercise the rights they derive from the internal market . it is also appropriate to increase legal certainty and to reduce the differences between the member states as to the national rules governing actions for damages for infringements of european competition law and , when applied in parallel to the latter , national competition law . an approximation of these rules will also help to prevent the emergence of wider differences between the member states ' rules governing actions for damages in competition cases to prevent a further lack of consumer confidence due to the current difficulties in obtaining compensation for the harm they have suffered .


### the rules laid down in this chapter shall be without prejudice to the right of an injured party to claim compensation for loss of profits . ### the rules laid down in this chapter shall be without prejudice to the right of any injured party that are likely to have suffered harm to claim compensation for loss of profits .


### a qualified trust service provider shall be liable for any direct damage caused to any natural or legal person due to failure to meet the requirements laid down in this regulation , in particular in article 19 , unless the qualified trust service provider can prove that he has not acted negligently . ### a qualified trust service provider shall be strictly liable for any damage caused to any natural or legal person due to failure to meet the requirements laid down in this regulation , in particular in article 19 , unless the qualified trust service provider can prove that he has not acted negligently .


### qualified trust service providers shall be audited by a recognised independent body once a year to confirm that they and the qualified trust services provided by them fulfil the requirements set out in this regulation , and shall submit the resulting security audit report to the supervisory body . ### qualified trust service providers shall be audited by a recognised independent body , whose competence to undertake the audit has been demonstrated , once a year to confirm that they and the qualified trust services provided by them fulfil the requirements set out in this regulation , and shall make the resulting security audit report public and transmit it to the supervisory body .


### the supervisory body shall have the power to issue binding instructions to qualified trust service providers to remedy any failure to fulfil the requirements indicated in the security audit report . ### the supervisory body shall have the power to issue binding instructions to qualified trust service providers to remedy any failure to fulfil the requirements indicated in the security audit report . these instructions shall be made publically available .


### a quantitative assessment of the budgetary and other economic policy measures being taken or proposed to achieve the objectives of the programme , comprising a cost - benefit analysis of major structural reforms which have direct long - term cost - saving effects , including by raising potential growth ; ### a quantitative assessment of the budgetary and other economic policy measures being taken or proposed to achieve the objectives of the programme , comprising a comprehensive cost - benefit analysis of major structural reforms which have direct long - term cost - saving effects , including by raising sustainable potential growth ;


### a quantitative assessment of the budgetary and other economic policy measures being taken or proposed to achieve the objectives of the programme , comprising a cost - benefit analysis of major structural reforms , which have direct long - term cost - saving effects , including by raising potential growth ; ### a quantitative assessment of the budgetary and other economic policy measures being taken or proposed to achieve the objectives of the programme , comprising a comprehensive cost - benefit analysis of major structural reforms , which have direct long - term cost - saving effects , including by raising potential growth ;


### the information about the paths for the general government balance and debt ratio , the growth of government expenditure , the planned growth path of government revenue at unchanged policy , the planned discretionary revenue measures and the main economic assumptions referred to in paragraph 2 and shall be on an annual basis and shall cover , the preceding year , the current year and at least the following three years . ### the information about the paths for the general government balance and debt ratio , the growth of cyclically adjusted government expenditure , the planned growth path of government cyclically adjusted revenues , net of one - off and other temporary measures revenue at unchanged policy , the planned discretionary revenue and expenditure measures and the main economic assumptions referred to in paragraph 2 and shall be on an annual basis and shall cover , the preceding year , the current year and at least the following three years .


### the information about the paths for the general government balance and debt ratio , the growth of government expenditure , the planned growth path of government revenue at unchanged policy , the planned discretionary revenue measures and the main economic assumptions referred to in paragraph 2 and shall be on an annual basis and shall cover the preceding year , the current year and at least the following three years . ### the information about the paths for the general government balance and debt ratio , the growth of government expenditure , the planned growth path of government revenue at unchanged policy , the planned discretionary revenue and discretionary measures and the main economic assumptions referred to in paragraph 2 and shall be on an annual basis and shall cover the preceding year , the current year and at least the following three years .


### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken and / or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle and to achieve sustained convergence . ### based on assessments by the commission and the economic and financial committee and the social protection committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken and / or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle and to achieve sustained and real convergence .


### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times . ### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp after taking into account all relevant factors . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort shall be more limited in economic bad times in conformity with the point system defined in article 10a


### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures ; ### growth government cyclically adjusted revenues , net of one - off and other temporary measures will not fall behind the medium growth rate of gdp a ten - year horizon updated at regular intervals , and the growth rate of government expenditure does normally not exceed a medium - term growth rate of gdp a ten - year horizon updated at regular intervals :


### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures ; ### growth in structural fiscal revenues government cyclically adjusted revenues , net of one - off and other temporary measures will not fall behind the medium growth rate of gdp a ten - year horizon updated at regular intervals , and the growth rate of government expenditure does normally not exceed a medium - term growth rate of gdp over a ten - year horizon updated at regular intervals .


### the council shall carry out the examination of the stability programme within at most three months of the submission of the programme . the council , on a recommendation from the commission and after consulting the economic and financial committee , shall , if necessary , deliver an opinion on the programme . where the council , in accordance with article 121 of the treaty , considers that the objectives and the content of the programme should be strengthened with particular reference to prudent fiscal policy - making , the council shall , in its opinion , invite the member state concerned to adjust its programme . ### the council shall carry out the examination of the stability programme within at most three months of the submission of the programme . the council , on a recommendation from the commission and after consulting the economic and financial committee and the social protection committee , shall , if necessary , deliver an opinion on the programme . where the council , in accordance with article 121 of the treaty , considers that the objectives and the content of the programme should be strengthened with particular reference to sustainable fiscal policy - making , the council shall , in its opinion , invite the member state concerned to adjust its programme .


### the council shall carry out the examination of the convergence programme within at most three months of the submission of the programme . the council , on a recommendation from the commission and after consulting the economic and financial committee , shall , if necessary , deliver an opinion on the programme . where the council , in accordance with article 121 of the treaty , considers that the objectives and the content of the programme should be strengthened with particular reference to prudent fiscal - policy making , the council shall , in its opinion , invite the member state concerned to adjust its programme . ### the council shall carry out the examination of the convergence programme within at most three months of the submission of the programme . the council , on a recommendation from the commission and after consulting the economic and financial committee and the social protection committee , shall , if necessary , deliver an opinion on the programme . where the council , in accordance with article 121 of the treaty , considers that the objectives and the content of the programme should be strengthened with particular reference to sustainable fiscal - policy making , the council shall , in its opinion , invite the member state concerned to adjust its programme .


### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from prudent fiscal - policy making . ### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission , the economic and financial committee , and the social protection committee in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from sustainable fiscal - policy making .


### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of convergence programmes , on the basis of information provided by member states with a derogation and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it , ensuing from deviations from prudent fiscal - policy making . ### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of convergence programmes , on the basis of information provided by member states with a derogation and of assessments by the commission , the economic and financial committee , and the social protection committee in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it , ensuing from deviations from sustainable fiscal - policy making .


### on the basis of a report of the commission accompanied , if appropriate , by a legislative proposal , the european parliament and the council shall , by …* , re - examine the collection rate of 45 % and the related deadline referred to in paragraph 1 with a view inter alia to possibly setting individual collection rates for one or more categories set out in annex iii , particularly for temperature exchange equipment and for lamps containing mercury . _________ * oj : please insert the date - 3 years from the date of entry into force of this directive . ### on the basis of a report of the commission accompanied , if appropriate , by a legislative proposal , the european parliament and the council shall , by 31 december 2012 , re - examine the collection rate and the deadlines referred to in paragraph 1 with a view inter alia to setting individual collection rates for one or more categories set out in annex iii , particularly for photovoltaic panels , temperature exchange equipment , lamps , including light bulbs , and small appliances , including small it and telecommunications devices .


### the commission shall evaluate , as a matter of priority , whether the entries regarding printed circuit boards for mobile phones and liquid crystal displays need to be amended . ### the commission shall evaluate , as a matter of priority , whether the entries regarding printed circuit boards for mobile phones and liquid crystal displays need to be amended . the commission shall evaluate whether amendments to annex vii are necessary to address relevant nanomaterials .


### member states shall ensure that shipments of used eee suspected to be weee are carried out in accordance with the minimum requirements in annex vi and shall monitor such shipments accordingly . ### member states shall ensure that shipments of used eee are carried out in accordance with the minimum requirements in annex vi and shall monitor such shipments accordingly .


### technical and financial assistance referred to in paragraph 1 may cover the detailed areas specified in annex i . the performance indicator for assistance shall be the percentage of projects adopted within 3 months of a crisis context . ### technical and financial assistance referred to in paragraph 1 may cover the detailed areas specified in annex i .


### technical and financial assistance referred to in paragraph 1 may cover the detailed areas specified in annex ii . the performance indicator for the assistance shall be the degree to which recipients’ capacities to prevent conflicts address pre - and post - conflict situations and build peace have been strengthened . ### technical and financial assistance referred to in paragraph 1 may cover the detailed areas specified in annex ii .


### union assistance shall be implemented in accordance with the common implementing regulation and through the following programming documents and financial implementation measures : ### union assistance shall be implemented in accordance with the common implementing regulation in particular and through the following programming documents and financial implementation measures :


### the preparation and implementation of thematic strategy papers shall implement the principles of aid effectiveness : partnership , coordination , and harmonisation . to that end , thematic strategy papers shall be consistent with , and avoid duplication of programming documents approved or adopted under other union instruments for external assistance . thematic strategy papers shall , in principle , be based on a dialogue of the eu and , where appropriate , the relevant member states , with the partner country or regions concerned involving civil society and regional and local authorities , so as to ensure that the country or regions concerned takes sufficient ownership of the process . the union and its member states shall consult each other at an early stage of the programming process in order to promote consistency and complementarity among their cooperation activities . ### the preparation and implementation of thematic strategy papers shall reflect the principles of aid effectiveness : partnership , coordination , and harmonisation . to that end , the european external action service and the commission shall ensure that thematic strategy papers are consistent with , and avoid duplication of programming documents approved or adopted under , other union instruments for external assistance . thematic strategy papers shall , in principle , be based on a dialogue of the eu , including the european parliament , and , where appropriate , the relevant member states , with the partner country or regions concerned involving civil society and regional and local authorities , so as to ensure that the country or regions concerned takes sufficient ownership of the process . the eeas , the commission , the european parliament and the member states shall consult each other at an early stage of the programming process in order to promote consistency and complementarity among their cooperation activities .


### technical and financial assistance referred to in article 4 may cover support for measures aimed at building and strengthening the capacity of the eu and its partners to prevent conflict , build peace and address pre - and post - crisis needs in close coordination with international , regional and sub - regional organisations , state and non - state actors in relation to their efforts in : ### technical and financial assistance referred to in article 4 may cover , in full conformity with article 8b , support for measures aimed at building and strengthening the capacity of the eu and its peace - building partners , including the united nations , to prevent conflict , build peace and address pre - and post - crisis needs in close coordination with international , regional and sub - regional organisations , state and non - state actors in relation to their efforts in :


### the treaty on european union reinforces the citizenship of the union and enhances further the democratic functioning of the union by providing inter alia that every citizen shall have the right to participate in the democratic life of the union and that not less than one million citizens who are nationals of a significant number of member states may take the initiative of inviting the european commission , within the framework of its powers , to submit any appropriate proposal on matters where citizens consider that a legal act of the union is required for the purpose of implementing the treaties . ### the treaty on european union reinforces the citizenship of the union and enhances further the democratic functioning of the union by providing inter alia that every citizen shall have the right to participate in the democratic life of the union by way of a european citizens ' initiative . that procedure affords citizens the possibility of directly approaching the commission , conferring on them a right of initiative similar to that exercised by the european parliament and the council .


### it is necessary to establish the minimum number of member states from which citizens must come . in order to ensure that a citizens ' initiative is representative of a union interest , this number should be set at one third of member states . ### it is necessary to establish a minimum number of member states from which citizens must come . this threshold should ensure that a citizens ' initiative is representative of a union interest but the requirements should not be too cumbersome . it therefore should be set at one fifth of the member states .


### in order to ensure coherence and transparency in relation to proposed citizens ' initiatives , it should be mandatory to register such initiatives on a website made available by the commission prior to collecting the necessary statements of support from citizens ; proposals that are abusive or devoid of seriousness should not be registered and the commission should reject the registration of proposals which would be manifestly against the values of the union . the commission should deal with registration in accordance with the general principles of good administration . ### in order to ensure coherence and transparency in relation to proposed citizens ' initiatives and to avoid a situation in which signatures are collected for a proposal which does not fall within the scope of this regulation , it should be mandatory to register such initiatives on a website made available by the commission prior to collecting the necessary statements of support from citizens . proposals that are not citizens ' initiatives within the meaning of this regulation should not be registered . registration is an administrative procedure aimed at selecting those initiatives that fall within the scope of this regulation ; therefore any refusal of registration should be based only on legal grounds and not , on any account , on grounds of political expediency . the commission should deal with registration in accordance with the general principles of good administration , and should therefore be obliged to inform the organisers of an initiative of the reasons for any refusal to register that initiative and of all possible judicial and extrajudicial remedies available to them . it should also be made clear by the commission that registration and the collection of the required number of statements of support will not necessarily result in the commission adopting a proposal for a legal act and that the registration of an initiative does not constitute a formal decision on competence issues .


### the organiser of a proposed citizens ' initiative should be responsible for the collection of the necessary statements of support from citizens . ### once a proposal is registered as a citizens ' initiative , statements of support from citizens may be submitted by the organisers .


### it is appropriate to provide for statements of support to be collected in paper form as well as online . online collection systems should have adequate security features in place in order to ensure , inter alia , that the person can be identified and that the data are securely stored . for this purpose , the commission should be required to set out detailed technical specifications for online collection systems . ### in order to put modern technology to good use as a tool of participatory democracy , it is appropriate to provide for statements of support to be collected online as well as in paper form . online collection systems should have adequate security features in place in order to ensure , inter alia , that the person is eligible to sign and signs only once and that the data are securely stored . the detailed technical specifications should be worked out at an expert level and be regularly adapted to technical developments ; the power to adopt detailed technical specifications for online collection systems should therefore be delegated to the commission .


### it is appropriate to provide that , where a citizens ' initiative has received the necessary statements of support from signatories and provided it is considered admissible , each member state should be responsible for the verification and certification of statements of support collected from citizens coming from that state . taking account of the need to limit the administrative burden for member states , they should , within a period of three months , carry out such verifications on the basis of appropriate checks and should issue a document certifying the number of valid statements of support received . ### in the absence of a competent union electoral authority , it is appropriate to provide that , where a citizens ' initiative has received the necessary statements of support from signatories , each member state should be responsible for the verification and certification of statements of support collected from citizens coming from that state . taking account of the need to limit the administrative burden for member states , they should , within a period of three months , carry out such verifications on the basis of appropriate checks , which may be based on random sampling , and should issue a document certifying the number of valid statements of support received .


### directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data is fully applicable to the processing of personal data carried out in application of this regulation . in this respect , it is appropriate to clarify that the organiser of a citizens ' initiative and the competent authorities of the member states are the data controllers within the meaning of directive 95 / 46 / ec and to specify the maximum period within which the personal data collected for the purposes of a citizens ' initiative may be retained . in their capacity as data controllers , organisers need to take all the appropriate measures to comply with the obligations imposed by directive 95 / 46 / ec , in particular those relating to the lawfulness of the processing , the security of the processing activities and the provision of information and the rights of data subject to access to his / her personal data as well as the correction and erasure of his / her personal data . ### directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data is fully applicable to the processing of personal data carried out in application of this regulation . in this respect , for the sake of legal certainty , it is appropriate to clarify that the organisers of a citizens ' initiative and the competent authorities of the member states are the data controllers within the meaning of directive 95 / 46 / ec and to specify the maximum period within which the personal data collected for the purposes of a citizens ' initiative may be retained . in their capacity as data controllers , organisers need to take all the appropriate measures to comply with the obligations imposed by directive 95 / 46 / ec , in particular those relating to the lawfulness of the processing , the security of the processing activities and the provision of information and the rights of data subjects to have access to their personal data as well as to procure the correction and erasure of their personal data .


### the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union for the purpose of amending the annexes to this regulation . ### with a view to the possible need in the future to amend or supplement certain non - essential elements in the provisions of this regulation or its annexes , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union .


### ' organiser ' means a natural or legal person or organisation responsible for the preparation and submission of a citizens’ initiative to the commission . ### ' organisers ' means natural persons forming a citizens ' committee responsible for the preparation and submission of a citizens’ initiative to the commission .


### requirements for the organiser and for signatories ### requirements for organisers , for the citizens ' committee and for signatories


### where the organiser is a natural person , that person shall be a citizen of the union and be of the age to be entitled to vote in the european elections . where the organiser is a legal person or an organisation it shall be established in a member state . organisations which do not have legal personality under the applicable national law shall have representatives that have the capacity to undertake legal obligations on their behalf and assume liability . ### organisers shall be citizens of the union and be of the age to be entitled to vote in the european elections .


### prior to initiating the collection of statements of support from signatories for a proposed citizens ' initiative , the organiser shall be required to register it with the commission , providing the information set out in annex ii , in particular on the subject - matter and objectives as well as on the sources of funding and support for the proposed citizens ' initiative . this information shall be provided in one of the official languages of the union , in an online register made available for that purpose by the commission . ### prior to initiating the collection of statements of support from signatories for a proposed citizens ' initiative , the organisers shall be required to register it with the commission , providing the information set out in annex ii , in particular on the subject - matter and objectives of the proposed citizens ' initiative . the organisers shall provide , for the register defined in the third subparagraph and where appropriate on their website , regularly updated information on the sources of support and funding for the initiative . this information shall be provided in one or more official languages of the union , in an online register made available for that purpose by the commission . information in an official language other the language in which it was originally provided may be provided subsequently for entry in the register . the translation of the initiative into other official languages of the union shall be the responsibility of the organisers .


### except in the cases foreseen in paragraphs 3 and 4 , the commission shall register without delay the proposed initiative under a unique registration number and send a confirmation to the organiser . ### if it is established that the proposed initiative qualifies as a citizens ' initiative pursuant to this regulation , the commission shall register it under a unique registration number and send a confirmation to the organisers .


### proposed citizens ' initiatives which can be reasonably regarded as improper because they are abusive or devoid of seriousness will not be registered . ### the commission shall register a proposed initiative within two months from its receipt when the following conditions are fulfilled : the citizens ' committee has been formed and the contact persons have been designated ; there are no manifest , significant inconsistencies between the linguistic versions of the title , subject - matter and objectives of the proposed initiative ; the initiative does not manifestly fall outside the scope of the commission’s power under the treaties to submit a proposal for the requested legal act ; the proposed initiative is not manifestly abusive , frivolous or vexatious ; the proposed initiative is not manifestly contrary to the values of the union as set out in article 2 of the treaty on european union .


### only statements of support forms which comply with the model set out in annex iii may be used for this purpose . the organiser shall complete the forms as indicated in annex iii prior to initiating the collection of statements of support from signatories . the information given in the forms shall correspond to the information contained in the register . ### only registered language versions of statements of support forms which comply with the model set out in annex iii may be used for this purpose . the organisers shall complete the forms as indicated in annex iii prior to initiating the collection of statements of support from signatories . the information given in the forms shall correspond to the information contained in the register .


### the identity of the person can be verified ; ### the fact that each person submits only one statement can be verified ;


### the system can generate individual statements of support in a form complying with the model set out in annex iii , in order to allow for the control by the member states , in accordance with article 9 . ### the system can generate statements of support in a form complying with the model set out in annex iii , in order to allow for the control by the member states , in accordance with article 9 .


### within 12 months following the entry into force of this regulation , the commission shall adopt technical specifications for the implementation of paragraph 4 , in accordance with the regulatory procedure laid down in article 19 . ### within six months following the entry into force of this regulation , the commission shall adopt by means of delegated acts technical specifications for online collection systems .


### after having collected the necessary statements of support from signatories in accordance with articles 5 and 7 , and provided that the commission has decided that a proposed citizens ' initiative is admissible in accordance with article 8 , the organiser shall submit the statements of support , in paper or in electronic form , to the relevant competent authorities provided for in article 14 for verification and certification . for this purpose the organiser shall use the form set out in annex vi . ### after having collected the necessary statements of support from signatories in accordance with articles 5 and 7 , the organisers shall submit the statements of support , in paper or in electronic form , to the relevant competent authorities provided for in article 14 for verification and certification . for this purpose the organisers shall use the form set out in annex vi .


### the organiser shall submit statements of support to the member state that issued the identification document indicated therein . ### the organisers shall submit statements of support to the member state where the signatories have their permanent residence or , in the case of signatories having their permanent residence in a third country , to the member state of which they are nationals .


### the competent authorities shall , within a period that shall not exceed three months , verify the statements of support provided on the basis of appropriate checks , and deliver to the organiser a certificate in accordance with the model set out in annex vii , certifying the number of valid statements of support for that member state . ### the competent authorities shall , within a period that shall not exceed three months , verify the statements of support provided on the basis of appropriate checks , and deliver to the organiser a certificate in accordance with the model set out in annex vii , certifying the number of valid statements of support for that member state . for the purpose of verifying statements of support , the competent authorities shall check that the person is eligible to sign and has signed only once . the authentication of signatures shall not be required .


### the communication referred to in paragraph 1 shall be notified to the organiser of the citizens ' initiative as well as to the european parliament and the council and shall be made public . ### the communication referred to in paragraph 1 shall be notified to the organisers as well as to the european parliament and the council and shall be made public .


### the organiser shall destroy all statements of support received for a given citizens ' initiative and any copies thereof at the latest one month after submitting that initiative to the commission in accordance with article 10 or 18 months after the date of registration of a proposed citizens ' initiative , whichever is the earlier . ### unless the proceedings are the subject of litigation , the organiser shall destroy all statements of support received for a given citizens ' initiative and any copies thereof at the latest two months after the publication of the commission communication referred to in point of article 11 . in the event of litigation , they shall be destroyed one month after the conclusion of the litigation . save where the competent authorities of member states have not yet concluded their verification of statements of support , they shall also be destroyed if a proposed citizens ' initiative has not been submitted to the commission within 18 months after the date of its registration .


### the competent authority shall destroy all statements of support and copies thereof that it has received for the purpose of carrying out the verification in accordance with article 9 , at the latest one month after issuing the certificate referred to therein . ### the competent authority shall destroy all statements of support and copies thereof that it has received for the purpose of carrying out the verification in accordance with article 9 , at the latest two months after issuing the certificate referred to therein . in the event of litigation they shall be destroyed one month after the conclusion of the litigation .


### member states shall ensure that organisers resident or established on their territory shall be liable under their civil or criminal law for infringements of this regulation and in particular for : ### member states shall ensure that organisers resident on their territory shall be liable under their civil or criminal law for infringements of this regulation and in particular for :


### amendment of the annexes the commission may adopt , by means of delegated acts in accordance with articles 16 , 17 and 18 , amendments to the annexes of this regulation . ### delegated acts the commission may adopt , by means of delegated acts in accordance with articles 16 , 17 and 18 : – technical specifications for online collection systems pursuant to article 6 ; – provisions determining the minimum amount of support and funding in respect of which information is to be provided pursuant to the first paragraph of article 10 ; – amendments to the annexes to this regulation .


### the european parliament and the council may object to the delegated act within a period of two months from the date of notification . at the initiative of the european parliament or the council this period shall be extended by one month . ### the european parliament and the council may object to the delegated act within a period of two months from the date of notification . at the initiative of the european parliament or the council this period shall be extended by two months .


### five years after the entry into force of this regulation , the commission shall present a report to the european parliament and the council on the implementation of this regulation . ### three years after the entry into force of this regulation , and every three years thereafter , the commission shall present a report to the european parliament and the council on the implementation of this regulation , with special emphasis on online collection systems and the application of transparency requirements concerning the funding of initiatives , together , if appropriate , with a legislative proposal for amendment of this regulation .


### this regulation shall enter into force on the twentieth day following that of its publication in the official journal of the european union . ### this regulation shall enter into force on the first day of the month following its publication in the official journal of the european union . it shall start to apply six months after its entry into force .