On Apr. 26, CYP SEC reported EBA extended AML guidelines to CASPs.
CYP SEC notified regulated entities that the EBA extended its guidelines on AML/CFT risk factors to include crypto-asset service providers (CASPs) on Jan. 16, 2024.
New guidelines highlight AML/CTF risk factors and mitigating measures that CASPs need to consider, representing a key step forward in EU’s fight against financial crime.
Follows EBA Jan. 2024 extended AML/CFT risk factors guide to CASPs, see #174603.
CASPs
CASPs can be abused for financial crime purposes and the risks of this happening can be increased, for example because of the speed of crypto-asset transfers or because some two products contain features that hide the user’s identity.
Important for CASPs to know about risks and implement measures that mitigate them.
Amendments aim to help CASPs identify risks by providing a non-exhaustive list of different factors, which may indicate the CASP’s exposure to higher or lower levels of AML/CTF risk due to its customers, products, delivery channels, geographical locations.
Based on these risk factors, CASPs can develop understanding of their customer base and to identify which part of their business or activity is most vulnerable to ML/TF.
Guidelines detail how CASPs should adapt mitigation measures, incl. blockchain tools.
CYP SEC calls upon regulated entities to comply with the Guidelines and be able to demonstrate that their AML/CFT policies, controls and procedures are appropriate in view of the risks that have been identified and take necessary mitigating measures.
