On 24 November 2023, the European Banking Authority (EBA) issued a public consultation on new guidelines on preventing the abuse of funds and certain crypto-asset transfers for money laundering and terrorist financing purposes.

Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets recasts Regulation (EU) 2015/847 and extends its scope to the transfer of certain crypto-assets. The recast brought the EU’s legal framework in line with the Financial Action Task Force’s standards by extending the obligation to include information about the originator and beneficiary to crypto-asset service providers (CASPs) – the so-called “travel rule”. It also amended the Fourth Anti-Money Laundering Directive (4MLD) to subject CASPs, which are authorized in accordance with the Regulation on Markets in Crypto-Assets (MiCA), to the same anti-money laundering / countering the financing of terrorism (AML/CFT) requirements and AML/CFT supervision as credit and financial institutions.

Article 36 of Regulation (EU) 2023/1113 and Article 19a(2) of 4MLD mandate the EBA to issue guidelines to Member State competent authorities, payment service providers and CASPs on: (a) the measures those providers should take to comply with certain articles of Regulation (EU) 2023/1113; (b) the technical aspects of the application of the Regulation to direct debits; and (c) the measures, including the criteria and means for identification and verification of the identity of the originator or beneficiary of a transfer made to or from a self-hosted address.

The EBA is proposing to deliver this mandate by introducing these proposed guidelines which repeal the European Supervisory Authorities’ guidelines under Article 25 of the Wire Transfer Regulation on the measures payment service providers should take to detect missing or incomplete information on the payer or the payee, and the procedures they should put in place to manage a transfer of funds lacking the required information (JC/GL/2017/16).

The deadline for comments on the consultation paper is 26 February 2024. The EBA will hold a virtual public hearing on the consultation paper on 17 January 2024.