The European Banking Authority (EBA), the European regulator tasked with addressing weaknesses in the European banking sector, has published two sets of guidelines, including specific guidelines for payment service providers (PSPs) and crypto-asset service providers (CASPs). On November 14, the EBA published guidelines specifying what PSPs and CASPs must do when transferring funds or cryptocurrencies to comply with EU and national restrictive measures regimes. According to the EBA, these guidelines ensure the implementation of EU and national sanctions.
The EBA believes that weaknesses in controls, internal policies and procedures could create legal and reputational risks for financial institutions, including PSPs and CASPs. In addition, weaknesses in these areas by financial institutions could also "undermine" the effectiveness of the EU's restrictive measures regime. The European Banking Authority stressed that this could lead to circumvention of the rules, thereby affecting the stability of the EU's financial ecosystem. According to the ECA, the guidance will apply from December 30, 2025.