The European Banking Authority (EBA) today published a Report on tackling money laundering and terrorist financing (ML/TF) risks in crypto-asset services, including issuance, trading, and service provision. The Report draws on lessons learnt from recent supervisory cases across the EU and highlights how competent authorities can strengthen their approaches to supervision in this fast-evolving sector.
The EBA has played a key role in strengthening the AML/CFT regulatory and supervisory framework for crypto-assets in the EU since 2018, when certain crypto-asset businesses were first brought within the EU framework. Through continuous engagement and cooperation with national supervisors, the European Supervisory Authorities (ESAs), and third-country authorities, the EBA has gathered critical insights into the operations and risks of crypto-asset businesses, both before and after the implementation of the Markets in Crypto-Assets Regulation (MiCA). This has enabled the EBA to identify significant AML/CFT vulnerabilities across the sector and to provide targeted guidance to improve compliance and oversight.
The Report is intended to inform supervisory approaches to the authorisation and oversight of crypto-asset service providers (CASPs) and issuers and to strengthen AML/CFT frameworks. It summarises lessons learnt from actions taken by competent authorities and the EBA in identifying and managing ML/TF risks associated with crypto-asset businesses, both prior to and immediately after the implementation of the new regulatory framework. It also describes strategies used by some CASPs and issuers to sidestep national AML/CFT supervision, highlights the safeguards introduced by MiCA and the revised AML/CFT regime, and identifies key elements that will underpin the effective application of the new EU framework.
By consolidating these findings, the Report supports the effective implementation of MiCA and the enhanced AML/CFT framework, while promoting a robust and forward-looking approach to tackling financial crime risks in the sector.
Legal basis, background
Under Article 1(5) of the EBA Founding Regulation, the EBA has a general objective to ensure the integrity of financial markets and preventing the use of the financial system for the purposes of ML/TF. In the context of Article 8 (1) (1), the EBA shall do so by promoting consistent, efficient and effective application of legislative acts with regard to the prevention of the use of the financial system for the purpose of ML/TF.
For that purpose, Article 9a gives the EBA a leading, coordinating and monitoring role in promoting integrity, transparency and security in the financial system. Article 31(1) of the EBA Regulation provides for the EBA a coordination role between competent authorities where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the Union. Also, Article 31(2), point (ea) of that Regulation requires the EBA to take appropriate measures to coordinate actions undertaken by relevant competent authorities with a view to facilitating the entry into the market of actors or products relying on technological innovation.
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