According to Cointelegraph, the European Banking Authority (EBA) has published two sets of guidelines for payment service providers (PSPs) and crypto-asset service providers (CASPs).
On November 14, the EBA issued guidance clarifying that PSPs and CASPs must comply with EU and national restrictions when transferring funds or crypto assets. The guidance ensures the implementation of EU and national sanctions.
The EBA noted that weaknesses in controls, internal policies and procedures could pose legal and reputational risks to financial institutions and could undermine the effectiveness of EU restrictive measures.
The guidance requires PSPs and CASPs to select reliable screening systems to manage the risk of breaching EU restrictive measures and prevent users from circumventing them.
EBA mentioned that in 2021 the European Commission released a legislative plan to reform the anti-money laundering and counter-terrorist financing framework, and the new regulations will come into effect on December 30, 2024.
