The European Banking Authority (EBA) declared on January 16 that European crypto companies will now be subject to the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) guidelines of the European Union.
The EBA stated in a statement, “Given the interdependence of the financial sector, the new Guidelines also include guidance addressed to other credit and financial institutions that have CASPs as their customers or which are exposed to crypto assets.”
Additionally, the guidance on assessing the risk of financial crimes includes instructions for crypto companies to carefully evaluate the potential risks linked to features that enhance anonymity, self-hosted wallets, decentralized platforms, and products facilitating transfers between the company and such services.
The EBA is broadening the ML/TF Risk Factors Guidelines to standardize how CASPs throughout the EU should incorporate the risk-based approach to AML/CFT into their operations.
By extending the scope of its existing measures to cover crypto, the European Banking Authority (EBA) “harmonizes the approach” that CASPs across the EU should adopt to combat financial crime.
Competent authorities must indicate their compliance with the Guidelines within two months of the translations being published in official EU languages. The updated Guidelines will be effective on December 30, 2024.
Also Read: European Regulators Probe Conventional Banks’ Crypto Ties
