On November 14, the European Banking Authority (EBA) issued new guidelines for payment service and crypto asset providers to ensure compliance with EU sanctions.
EBA Guidelines Innovations
The guidelines outline how providers should implement EU and national sanctions to mitigate legal and operational risks. The new rules will be enforceable from December 30, 2025.
Significance of the New Rules
The EBA emphasizes the need for robust internal controls and governance to prevent sanction circumvention and strengthen the region's financial system. Reliable screening systems are recommended to reduce the risk of illicit activities.
Context and Developments
These changes align with the EU's broader efforts to enhance financial transparency and combat illicit activities. The EBA's guidelines are part of an EU initiative to reform Anti-Money Laundering and Countering the Financing of Terrorism.
EBA's new guidelines are a significant step towards strengthening the EU's regulatory framework to enhance financial market transparency and sanction compliance.
