EBA consults on amendments to the Guidelines on money laundering and terrorist financing risk factors to include crypto-asset service providers

EBA started a consultation on proposed amendments to its Guidelines on ML/TF risk factors. The suggested changes aim to expand the scope of these Guidelines to include CASPs. The consultation period will last until 31 August 2023.
CASPs, as well as other credit and financial institutions, face ML/TF risks. However, CASPs are particularly exposed to increased risks due to factors such as the use of innovative technologies, instant global transfers of crypto assets, and privacy-enhancing features in their services.
The EBA’s proposed amendments seek to establish common regulatory expectations for CASPs in identifying and effectively mitigating these risks. The changes introduce sector-specific guidance for CASPs, highlighting risk factors that indicate higher or lower ML/TF risk. CASPs should consider these factors during ML/TF risk assessments of their business and customers, as well as adjust their CDD accordingly.
The amendments also provide guidance to credit and financial institutions on the risks they should consider when entering into a business relationship with CASPs or when they have exposure to crypto assets. The EBA will also deliver specific guidance to AML/CFT supervisors of CASPs through amendments to the EBA risk-based supervision Guidelines (eventid=20508).
These amendments are part of the EBA’s ongoing efforts to strengthen the European Union’s AML/CFT defenses. The EBA’s work aligns with the EU’s legislative package proposed in July 2021 to reform the AML/CFT framework, including extending AML/CFT obligations and supervision to CASPs (eventid=11869, eventid=11922, eventid=11857, eventid=11948).
Comments to the consultation paper can be sent by clicking on the „send your comments“ button on the EBA’s consultation page“. The deadline for the submission of comments is 31 August 2023.