EBA Takes On Crypto Risks: Extends Money Laundering Guidelines to CASPs

<p>The European Banking Authority (EBA) has extended its
guidelines on money laundering (ML) and terrorist financing (TF) risk factors
to crypto-asset service providers (CASPs). This initiative is significant in the EU's ongoing battle against illicit financial
activities. As crypto-assets become increasingly susceptible to misuse for
criminal purposes, the EBA's guidelines aim to equip CASPs with the knowledge
and tools to identify and effectively mitigate these risks.</p><p>The EBA's guidelines shed light on the risks CASPs face, emphasizing factors such as the rapid crypto-asset transfers
and features that conceal user identities. These risks necessitate a
comprehensive understanding, prompting the EBA to provide a list
of factors indicating exposure levels to ML and TF risks. </p><p>CASPs are urged to delve
into their customer base, product offerings, delivery channels, and
geographical locations to pinpoint vulnerabilities. To counteract these risks, the CASPs are encouraged by the <a href="https://www.financemagnates.com/tag/european-banking-authority-eba/" target="_blank" rel="follow">EBA</a> to
adjust their mitigating measures, with a special emphasis on the use of
<a href="https://www.financemagnates.com/terms/b/blockchain/">blockchain</a> analytics tools.</p><p>Guidelines for Financial and Crypto Institutions</p><p>The guidelines provide a roadmap for CASPs to
tailor their strategies based on the identified risk factors, creating a robust
defense against potential <a href="https://www.financemagnates.com/terms/m/money-laundering/">money laundering</a> and terrorism financing activities.</p><blockquote><p lang="en" dir="ltr">We have extended our Guidelines on money laundering (ML) and terrorist financing (TF) risk factors to <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a>-asset service providers (CASPs).