EBA consults on new terror finance and crypto guidelines

The European Banking Authority is consulting on new guidelines on fund abuse, AML and terror finance.

It said, 24 November, that the public consultation will be on ‘preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes. These “travel rule” Guidelines specify the steps that Payment Service Providers (PSPs), Intermediary PSPs (IPSPs), crypto-asset service providers (CASPs) and Intermediary CASPs (ICASPs) should take to detect missing or incomplete information that accompanies a transfer of funds or crypto-assets.

‘They also detail the procedures all these providers should put in place to manage a transfer of funds or a transfer of crypto-assets that lacks the required information. These Guidelines aim at forging a common understanding to ensure the consistent application of EU law as well as a stronger anti-money laundering and countering the financing of terrorism (AML/CFT) regime. The consultation runs until 26 February 2024.’

The EBA said that the main objective of the Guidelines ‘is to prevent the abuse of funds and crypto-assets transfers for terrorist financing and other financial crime purposes. The Guidelines also ensure that relevant authorities can fully trace such transfers where this is necessary to prevent, detect or investigate money laundering and terrorist financing.’

See the consultation at: https://www.eba.europa.eu/eba-consults-new-guidelines-preventing-abuse-funds-and-certain-crypto-assets-transfers-money