The European Banking Authority (EBA) has published new guidelines aimed at crypto-asset service providers (CASPs) and payment service providers (PSPs) to ensure compliance with the EU’s restrictive measures during fund or crypto transfers. Effective from December 30, 2025, these guidelines clarify the necessary procedures and risk management frameworks that financial institutions must adopt to align with EU and national sanctions. The EBA noted that inadequate internal controls can pose significant legal and reputational risks, potentially undermining the effectiveness of compliance with restrictive measures. The guidelines also mandate these providers to implement reliable screening systems to manage risks associated with violations of these measures. Furthermore, these developments align with the EU's broader legislative efforts initiated in 2021 to reform its anti-money laundering and counter-terrorism financing frameworks, which will be fully effective by December 30, 2024.

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