On Nov. 24, EBA consulted on new travel rule AML/CFT guidelines.
The EBA consulted on new Guidelines on preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes.
Follows EU CNCL Jun. 2023 issued Reg 2023/1113 on crypto transfers, see #142019.
In Jul. 2021, the EC issued a legislative package with 4 proposals to reform EU’s legal and institutional AML/CFT framework: it included a proposal for a recast of Reg 2015/847, published in Official Journal of the EU since Jun. 2023 as Reg 2023/1113.
The recast brings the EU’s legal framework in line with the Financial Action Task Force (FATF) standards, extending obligation to include information about originator and beneficiary to crypto-asset service providers (CASPs) – the so-called 'travel rule'.
Amends Dir 2015/849 to subject CASPs, authorized in accordance with Reg 2023/1114 to same AML/CFT requirements and supervision as credit and financial institutions.
Art. 36 (first and second subparas), Reg 2023/1113 and Art. 19a(2), Dir 2015/849 mandate EBA to issue guidelines to competent authorities, PSPs and CASPs on:
(a) measures providers should take to comply with certain articles of Reg 2023/1113.
(b) the technical aspects of the application of this Regulation to direct debits; and (c) measures, including criteria and means for identification and verification of the identity of the originator or beneficiary of a transfer made to or from a self-hosted address.
New Guidelines
EBA is proposing to repeal and replace 2017 Joint ESA Guidelines under Art. 25, Reg 2015/847 on measures payment service providers should take to detect missing or incomplete information on the payer or payee, and the procedures they should put in place to manage a transfer of funds lacking the required information (JC/GL/2017/16).
EBA Guidelines aim to promote development of a common understanding by PSPs, IPSPs, CASPs and ICASPs and competent authorities across EU, of effective procedures to detect and manage transfer of funds and crypto-assets lacking required information on the payer/originator and the payee/beneficiary, and how they should be applied.
Consultation Process
Comments to the consultation paper can be sent by via the EBA's consultation page.
The EBA will hold a virtual public hearing on the consultation paper on Jan. 17, 2024. The EBA invites interested stakeholders to register using this linkby Jan. 3, 2024.
The dial-in details will be communicated to those who have registered for the meeting.
Consultation End
The deadline for the submission of comments is Feb. 26, 2024.
Report summarizes responses to the consultation, lists changes made to guidelines.
Guidance sets out information that should accompany transfers of funds of certain cryptoassets, aims to tackle abuse of such transfers for money laundering, terrorism.
Specify which information should accompany a transfer of funds or cryptoassets, list the steps PSPs, IPSPs, CASPs and ICASPs should take to detect missing/incomplete information, and what they should do if transfer lacks the required information.
Guidelines aim to establish consistent and effective approach to implementing the travel rule across EU that allows authorities to fully trace transfers for AML/CFT.
The guidelines will be translated into official EU languages, issued on EBA's website.
Deadline for competent authorities to report whether they comply is 2 months later.
The guidelines will apply from Dec. 30, 2024.
Regulators
EU EBA
Entity Types
B/D; Bank; BHC; Corp; Exch; Fiduciary; IA; MSB
Reference
Rp EBA/GL/2024/11, PR, 7/4/2024; PR, CP EBA/CP/2023/35, 11/24/2023; TFR Reg 2023/1113; AMLD Dir 2015/849; Reg 2015/847; Rpl JC/GL/2017/16; FinTech;
