On Mar. 29, EBA proposed amendments to AML/CFT guidelines.
EBA issued consultation on amendments to include crypto-asset service providers.
Follows EBA Mar. 2021 consulted on changes to risk-based guidelines, see #100687.
Crypto Providers
EBA launched a public consultation on amendments to guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision.
Will extend scope to AML/CFT supervisors of crypto-asset service providers (CASPs).
By its nature, provision of crypto-asset services is a cross-border activity; why it is important that same standards apply wherever CASPs operate in the single market.
To achieve this, the EBA is proposing to amend its guidelines on risk-based AML/CFT supervision to clarify how they apply to AML/CFT supervisors of CASPs.
The amendments include guidance on the sources of information competent authorities should consider when assessing ML/TF risks associated with CASPs.
They also highlight the importance of a consistent approach to setting supervisory expectations where multiple NCAs are responsible for supervision of same institutions.
And 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.
Specific AML/CFT guidance for CASPs will be delivered through the forthcoming amendments to EBA’s Risk Factors Guidelines (see #99362); the amendments to the guidelinesto prevent abuse of fund transfers for ML/TF purposes (see #35170), and new guidelines onpolicies and procedures for compliance with restrictive measures.
Effectiveness
Comments to be received by Jun. 29, 2023; EBA will hold a virtual public hearing on the consultation paper on Jun. 7, 2023, from 14:00 to 16:00 Paris time.
Sep. 2023 EBA Banking Group Response
On Sep. 13, 2023, EU EBA published the response of its Banking Stakeholder Group (BSG) to the consultation on changes to guidelines to include crypto service providers.
BSG welcomed consultation and recognition that some additional, tailored guidance is likely to be helpful to ensure guidelines can be applied to cryptoasset transfers.
Welcomed inclusion of references to need for supervisors to consider and understand technologies key to cryptoasset services and which may be useful in AML controls.
Thought it would be helpful to go further and include references to need to understand and consider how choices about technology types can affect AML risk profile of crypto.
For example may be differences arising from whether CASPs are centralized or decentralized, whether ledger is permissioned or permissionless, degree of anonymity.
Welcomed emphasis on importance of co-ordination between competent authorities and consistency approach, will be beneficial both for authorities' and entities' goals.
Nov. 27, 2023 Guidelines Extended
On Nov. 27, 2023, EU EBA extended its risk-based AML/CFT supervision guidelines to AML/CFT supervisors of crypto-asset service providers (CASPs) following consultation.
Issued final report on guidelines to amend the AML/CFT supervision guidelines, a corrigendum to the guidelines, and a consolidated version of the guidelines.
New guidelines set clear expectations on steps supervisors should take to identify and manage money laundering and terrorist finance risk, in a common way across EU.
Amendments to the guidelines include guidance on sources of information competent authorities should consider when assessing final crime risks associated with CASPs.
Highlight importance of consistent approach in setting supervisory expectations, where multiple competent authorities responsible for the supervision of the same institutions.
Also emphasize importance of training so staff have necessary skills to carry out role.
The amending guidelines will be translated into official EU languages and published on EBA website, competent authorities to report compliance 2 months after publication.
The amending guidelines will apply from Dec. 30, 2024.
