Crypto-asset service providers that carry out transfers must choose a screening system that allows them to comply with the EU’s restrictive measures regimes.
The European Banking Authority (EBA), Europe’s regulatory agency in charge of addressing weaknesses in the banking sector, published two sets of guidelines, including a specific guide for payment service providers (PSPs) and crypto-asset service providers (CASPs).
On Nov. 14, the EBA released guidelines that specify what PSPs and CASPs must do to comply with the European Union’s and national restrictive measures regimes when transferring funds or crypto. According to the EBA, the guidelines ensure the implementation of EU and national sanctions. The EBA wrote:
The EBA said that weaknesses in controls, internal policies and procedures can pose legal and reputation risks to financial institutions, including PSPs and CASPs.
