FCC RegUpdate

On May 31, 2023, the European Banking Authority (EBA) initiated a public consultation on proposed amendments to its Guidelines on money laundering and terrorist financing (ML/TF) risk factors. The objective of these revisions is to expand the guidelines’ coverage to include crypto-asset service providers (CASPs). The consultation period will continue until August 31, 2023.
The consultation encompasses the introduction of Sector-Specific Guidance for CASPs, aiming to highlight indicators that assess the level of ML/TF risk exposure for CASPs. Through these guidelines, regulatory authorities seek to encourage effective risk assessment and mitigation strategies within the crypto industry.
Key points in the amended guidelines include:
• The requirement for sector-specific guidelines specifically tailored to CASPs.
• Emphasizing the necessity of a secure remote onboarding tool.
• Providing further guidance for credit and financial institutions when establishing business relationships with crypto ecosystems located in third countries that may not fall under the provisions of MiCA Regulation.
• Offering guidance on mitigating measures that CASPs should implement in situations where the risk is either heightened or reduced.
• Addressing products that incorporate privacy-enhancing features or enable the use of cash and crypto-ATMs for exchanging crypto-assets into fiat currencies.
• Assessing customers’ or beneficial owners’ connections to high-risk jurisdictions or transactions involving jurisdictions associated with a high ML/TF risk, including the placement of crypto-ATMs in those jurisdictions.