2024

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 The European Banking Authority (EBA) has<a href="https://www.eba.europa.eu/sites/default/files/2024-11/eaeae49d-81a5-4154-8af9-5014f6ee8881/Final%20Report%20Guidelines%20restrictive%20measures%20.pdf" rel="noopener noreferrer nofollow"> issued</a> new guidelines for payment service providers (PSPs) and crypto-asset service providers (CASPs) to ensure compliance with the European Union’s sanctions when transferring funds or crypto assets.
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Released on November 14, the guidelines outline how these providers should implement EU and national sanctions to mitigate legal and operational risks.
The EBA stressed the need for robust internal controls and governance frameworks to prevent the circumvention of EU sanctions, as weaknesses in these areas could undermine the effectiveness of restrictive measures and destabilize the region’s financial system. To address this, the guidelines recommend that PSPs and CASPs adopt reliable screening systems for fund and crypto transfers to ensure compliance and reduce the risk of illicit activities.
These new regulations will become enforceable on December 30, 2025, providing providers with time to align their processes with the updated requirements.
This development aligns with broader regulatory efforts across the EU to strengthen financial transparency and combat illicit activities.
According to the regulator, the guidelines are part of a broader EU initiative, which includes the European Commission’s 2021 legislative package to reform the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework. As part of this package, new rules for fund and crypto transfers were adopted in June 2023.
Consequently, the EBA expanded its Travel Rules guidelines to cover crypto service providers and their intermediaries. It<a href="https://defi-planet.com/2024/07/new-eu-guidelines-mandate-crypto-exchanges-to-comply-with-aml-reporting-by-december-2024/" rel="noopener noreferrer nofollow"> announced</a> in July 2024 that starting December 30, crypto exchanges in the EU will need to comply with Regulation (EU) 2023/1113, which mandates the reporting of information on fund and crypto asset transfers. It gave the affected parties a two-month grace period to align with the new requirements.&nbsp;
&nbsp;While the EBA recognized that adhering to these guidelines may impose a financial burden on crypto exchanges and service providers, it emphasized the expected long-term benefits are worth the cost.&nbsp;
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The post <a href="https://defi-planet.com/2024/11/eus-eba-sets-new-rules-for-payment-and-crypto-providers-to-combat-sanction-evasion-2/" rel="noopener noreferrer nofollow">EU’s EBA Sets New Rules for Payment and Crypto Providers to Combat Sanction Evasion</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

EU’s EBA Sets New Rules for Payment and Crypto Providers to Combat Sanction Evasion

DeFi Planet

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