EBA Issues New Guidelines For Payment And Crypto Asset Service Providers

According to PANews, the European Banking Authority (EBA) released new guidelines on November 14 for payment service providers (PSPs) and crypto asset service providers (CASPs). These guidelines clarify the obligations of these institutions to comply with the restrictive measures imposed by the European Union and its member states during transfers. The EBA highlighted that these guidelines will assist financial institutions in effectively implementing restrictive measures within their governance and risk management frameworks to avoid operational and legal risks. The EBA emphasized that any weaknesses in the controls, internal policies, and procedures of financial institutions could lead to legal and reputational risks. Such vulnerabilities could undermine the effectiveness of the EU's restrictive measures and potentially impact the stability of the EU financial system. The new guidelines mandate that PSPs and CASPs adopt reliable screening systems to prevent users or entities from circumventing these measures. These guidelines are set to take effect on December 30, 2025.