The European Union’s banking regulator plans to update existing anti-money laundering and combating the financing of terrorism (AML/CFT) rules for payment service providers and crypto-asset service providers (CASP).
The European Banking Authority (EBA) has published a consultative document outlining the shortcomings of the current European AML/CFT regulatory and compliance rules. The existing rules are planned to be updated by the end of 2024.
In particular, the EBA specialists intend to oblige CASPs to ensure the smooth transfer of information by increasing the compatibility of their protocols. Crypto service providers will be required to provide the regulator with comprehensive information about their own addresses and ensure the possibility of individual identification of participants of crypto transactions. The rules will be relevant for transactions worth more than €1,000, but the document doesn’t specify whether the threshold is monthly, daily, or one-off.
The regulator has put the new industry guidelines out for public discussion. All interested parties can submit comments until February 26, 2024. After the consultation process is completed, the final text of the recommendations will be formed, which will have to come into force on December 30, 2024.
Earlier this month, the EBA presented a new set of recommendations under the MiCA bill for issuers of stablecoins that operate in the EU.
