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EBA Extends Anti-Money Laundering Guidelines to Cover Cryptocurrency Firms Across EU

The European Banking Authority (EBA) issues guidelines for crypto firms to adhere to anti-money laundering rules.

by Alexander
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The European Banking Authority (EBA) has extended its anti-money laundering measures to include crypto asset service providers (CASP) in the European Union. The move aims to standardize the approach to combat financial crime among crypto firms across the EU.

The new guidelines come as part of the EBA’s efforts to address the unique challenges posed by crypto-assets, such as the increased risk of money laundering and terrorist financing due to the rapid transfer speed and features that can hide user identities.

Scope of the EBA Guidelines

The EBA’s guidance covers risk-based supervision of CASPs, aligning with the Financial Action Task Force’s recommendations. It also addresses measures to prevent the abuse of crypto transfers. The guidelines extend to credit and financial institutions with CASPs as customers or exposure to crypto assets.

Legislative Background

The EU finalized legislation last year for the transfer of funds via digital assets, alongside the Markets in Crypto Assets (MiCA) regulatory package. The EBA has previously published guidelines on risk-based supervision and is consulting on additional measures related to preventing abuse and internal controls for CASPs.

Implementation Timeline

Competent authorities are required to report their compliance with the new guidelines within two months of their translation into official EU languages. The guidelines will be applicable starting December 30, coinciding with the full effect of MiCA.

By extending its regulatory framework to encompass crypto firms, the EBA seeks to create a standardized and secure environment for crypto transactions, aligning with the broader regulatory landscape in the European Union.

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