EBA Proposes Guidelines For Crypto-Asset Service Providers To Fight Money Laundering
- The European Banking Authority (EBA) has proposed amendments to its Guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision to extend the scope of these Guidelines to AML/CFT supervisors of crypto-asset service providers (CASPs).
- The EBA emphasizes the importance of a consistent approach to setting supervisory expectations where multiple competent authorities supervise the same institutions.
The European Banking Authority (EBA) has recently launched a public consultation on proposed amendments to its Guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision.
These amendments aim to extend the application of these Guidelines to AML/CFT supervisors of crypto-asset service providers (CASPs). The proposed changes are aimed at ensuring that the same standards apply wherever CASPs operate in a single market.
The consultation period for the proposed amendments to the Guidelines on Risk-Based AML/CFT Supervision runs until 29 June 2023. The Guidelines contain guidance on the sources of information that competent authorities should consider when assessing ML/TF risks associated with CASPs. Additionally, the proposed amendments highlight the importance of a consistent approach to setting supervisory expectations where multiple competent authorities are responsible for the supervision of the same institutions.
Moreover, the proposed amendments stress the importance of training to ensure that staff from competent authorities have the technical skills and expertise necessary for the execution of their functions. The EBA is committed to strengthening Europe’s AML/CFT defenses, and specific AML/CFT guidance for CASPs will be delivered through forthcoming amendments to the EBA’s Risk Factors Guidelines, the amendments to the Guidelines to prevent the abuse of fund transfers for ML/TF purposes, and new Guidelines on policies and procedures for compliance with restrictive measures.
The EBA will hold a virtual public hearing on the consultation paper on 7 June 2023 from 14:00 to 16:00 Paris time. Interested stakeholders are invited to register using the provided link by 5 June 2023 at 16:00 CEST. Dial-in details will be communicated to those who have registered for the meeting. All contributions received will be published following the end of the consultation unless requested otherwise.
Once adopted, the Markets in Crypto-assets Regulation will bring crypto-asset services and activities within the EU regulatory scope. This will ensure that the AML/CTF regulatory and supervisory framework is aligned with international recommendations and that ML/TF risks associated with this sector are addressed and effectively managed.
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