On May 31, EBA issued consultation on extending guidelines to CASPs.
EU EBA issued consultation on amending the money laundering and terrorist financing (ML/TF) risk factors guidelines to include crypto-asset service providers (CASPs).
Specific guidance for AML/CFT supervisors of CASPs are in amendments to EBA risk-based supervision guidelines under consultation until Jun. 29, 2023, see #167752.
Scope of Guidelines
The revised guidelines set out factors that firms should consider when assessing the ML/TF risk associated with a business relationship or occasional transaction.
Provide guidance on how financial firms can adjust customer due diligence measures to mitigate ML/TF risk they have identified so as to make them more appropriate.
Finally, support competent authorities' AML/CFT supervision efforts when assessing the adequacy of firms' risk assessments and AML/CFT policies and procedures.
Revisions
Includes sector-specific guidance for CASPs, including risk assessments, expected risk mitigation measures, customer due diligence requirements, and regulatory standards.
Highlights specific risk factors to be considered by credit and financial institutions when entering into a business relationship or correspondent relationship with CASPs.
Stresses need for secure remote onboarding tools for credit and financial institutions.
Provides guidance for dealing with unregulated or under-regulated offshore CASPs.
On Jan. 16, 2024, EU EBA issued final report extending its guidelines on money laundering and terrorist risk factors to CASPs through a set of amending guidelines.
The new guidelines highlight risk factors and mitigating measures that CASPs need to consider, and aim to help CASPs identify these risks via a list of different factors.
Based on these risk factors, CASPs can develop understanding of their customer base, identify which part of their business or activity is most vulnerable to money laundering.
Due to interdependence of financial sector, new guidelines also include guidance for other credit/financial institutions with CASPs as customers, or exposed to cryptoassets.
As well as the amending guidelines, EBA's report also contains feedback to consultation on the guidelines, and comprehensive list of all changes made to AML/CFT guidelines.
The new guidelines will be translated into all official EU languages and issued by EBA.
Competent authorities will then have two months to report whether they comply.
The amending guidelines will apply from Dec. 30, 2024.
Regulators
EU EBA
Entity Types
B/D; Bank; Ins; Inv Co
Reference
Rp EBA/GL/2024/01, PR, 1/16/2024; PR, CP EBA/CP/2023/11, 5/31/2023; EBA/GL/2021/02; AMLD Dir 2015/849
