New EU Guidelines Demand Strict Compliance from Crypto and Payment Providers

The European Banking Authority (EBA) has unveiled a set of guidelines aimed at ensuring that payment service providers (PSPs) and crypto-asset service providers (CASPs) comply with EU and national sanctions when facilitating fund or crypto transfers.

Released on November 14, these guidelines outline the necessary steps for these providers to align with the EU’s restrictive measures regimes, which are designed to prevent financial activities that may undermine the EU’s political and economic interests.

The EBA emphasizes the need for PSPs and CASPs to implement robust screening systems to detect and prevent any transfers that might violate these sanctions.

The guidelines stress that weaknesses in internal policies, controls, and procedures could lead to significant legal and reputational risks, as well as the potential circumvention of EU sanctions. Such failures could disrupt the EU’s financial stability and erode the effectiveness of these restrictive measures.

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The guidelines will take effect on December 30, 2025, as part of broader EU reforms introduced in 2021 to improve the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework.

These rules, which include new regulations on fund and crypto transfers, were adopted on June 9, 2023, and mandate the EBA to help financial institutions adhere to the new standards.

Kosta Gushterov