Crypto Analyzer

EBA Consults on Amendments to AML/CFT Guidelines to Include Crypto-Asset Service Providers

The European Banking Authority (EBA) has initiated a public consultation on amendments to its Guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision, aiming to include crypto-asset service providers (CASPs) under its purview. The consultation will be open until 29 June 2023.

Crypto-asset services are inherently cross-border, necessitating consistent standards across the single market. To achieve this, the EBA plans to amend its Guidelines on Risk-Based AML/CFT Supervision to clarify its application to CASP AML/CFT supervisors.

The proposed amendments will provide guidance on the information sources that competent authorities should utilize when evaluating money laundering and terrorism financing (ML/TF) risks associated with CASPs. The amendments emphasize a consistent supervisory approach across multiple competent authorities and underline the importance of training to ensure that staff possess the necessary technical skills and expertise.

The EBA will deliver specific AML/CFT guidance for CASPs through upcoming amendments to the Risk Factors Guidelines, Guidelines to prevent ML/TF abuse of fund transfers, and new Guidelines on compliance policies and procedures for restrictive measures. These efforts will bolster Europe’s AML/CFT defenses.

The EBA encourages stakeholders to submit comments on the consultation paper by 29 June 2023 and to register for a virtual public hearing on the consultation paper, scheduled for 7 June 2023.

The EBA’s mandate to issue guidelines on risk-based AML/CFT supervision of CASPs by competent authorities stems from Directive (EU) 2015/849 and the “Provisional Agreement Resulting from Interinstitutional Negotiations” of 5 October 2022. The forthcoming Markets in Crypto-assets Regulation will bring CASPs within the EU regulatory framework, subjecting them to EU AML/CFT obligations and supervision.