Yigit Taha OZTURK 
These guidelines will help financial institutions, including PSPs and CASPs, minimize legal and operational risks associated with their activities, particularly in relation to crypto transfers. The EBA emphasizes that weaknesses in internal controls could result in reputational damage and undermine the effectiveness of EU sanctions, potentially allowing circumvention of rules and destabilizing the financial ecosystem.
The EBA stresses that by December 2025, PSPs and CASPs must implement reliable screening systems to comply with EU restrictive measures. This includes managing the risk of entities violating these measures and preventing circumvention of sanctions. These regulatory steps are crucial in strengthening the EU financial security and the integrity of the crypto industry.
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The regulations stem from a 2021 European Commission proposal to reform the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) frameworks, with these rules set to take full effect in December 2024.
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