EBA issues guidance to AML/CFT supervisors of CASPs

EBA has published a final report on the extension of its risk-based AML/CFT supervision guidelines to include supervisors of CASPs and published a corrigendum on these guidelines, combined in a consolidated version. This move is crucial given the inherent high ML and TF risks associated with CASPs, which operate globally and often transcend traditional borders.
The EBA’s decision is motivated by the recognition that a common supervisory approach is essential for effectively addressing the unique challenges posed by CASPs. Cryptocurrency transactions are known for their cross-border nature and the potential anonymity they offer, making them susceptible to illicit activities. By extending AML/CFT supervision guidelines to cover CASPs, the EBA aims to establish a unified understanding across all EU Member States regarding the risk-based approach to supervision in this sector.
The guidelines provide specific expectations for supervisors, outlining steps to identify and manage ML/TF risks associated with CASPs. They emphasize the importance of cooperation among competent authorities, prudential supervisors, and other stakeholders. Additionally, the guidelines highlight the need for a consistent approach when multiple competent authorities share responsibility for supervising the same institutions.
To support effective supervision, the EBA’s amendments include guidance on the sources of information that competent authorities should consider when assessing ML/TF risks linked to CASPs. This is vital for ensuring a comprehensive and well-informed approach to supervision.
The EBA’s efforts extend beyond the guidelines, as it plans to issue further AML/CFT guidance for CASPs through amendments to its existing ML/TF Risk Factors Guidelines (eventid=21510). Furthermore, new guidelines aimed at preventing the abuse of fund and crypto-asset transfers for ML/TF purposes are on the horizon.
In aligning its guidelines with EU directives and regulations, particularly MiCA, the EBA ensures that crypto-asset services fall under the EU regulatory scope for AML/CFT obligations and supervision. The amending Guidelines will apply from 30 December 2024.