The new AML/CFT regulations for CASPs are about to come into force! Take part in the EBA consultation and prepare for the changes

The European Banking Authority (EBA) has launched a public consultation on draft Regulatory Technical Standards (RTS) aimed at establishing the criteria for appointing a central contact point (CCP) by crypto-asset service providers (CASPs).

The purpose is to ensure compliance with anti-money laundering and counter-terrorism financing (AML/CFT) obligations in host Member States. The consultation will remain open until 4 February 2025.

What do the regulations cover and when will they come into force?

Article 45(10) of Directive (EU) 2015/849 mandates the EBA to develop RTS specifying the conditions under which a central contact point must be appointed and defining its functions.

The initial version of such standards was published in 2017, leading to the adoption of Commission Delegated Regulation (EU) 2018/1108 in 2018. At that time, the scope was limited to electronic money institutions (EMIs) and payment service providers (PSPs).

The new Regulation (EU) 2023/1113, which governs the information accompanying transfers of funds and certain crypto-assets, will come into effect on 30 December 2024. This regulation amends Directive (EU) 2015/849 by extending its scope to CASPs.

As a result, under Article 45(9) of the Directive, Member States may require CASPs operating through establishments other than branches to appoint a CCP on their territory. This mirrors the existing provisions for EMIs and PSPs, prompting the EBA to update Commission Delegated Regulation (EU) 2018/1108.

Addressing New Challenges

CASPs may provide services in other Member States through establishments that are not classified as “obliged entities” under AML/CFT rules. Despite this, these establishments are still required to comply with local AML/CFT regulations, which complicates supervisory processes.

To address this challenge, the proposed RTS defines the circumstances under which the appointment of a CCP is necessary and outlines its specific functions. Since similar considerations apply to EMIs and PSPs, the EBA proposes maintaining the existing structure of Regulation (EU) 2018/1108. The provisions for EMIs and PSPs will remain unchanged, while new, CASP-specific measures will be introduced to reflect their distinct business models and operations.

Consultation Process

Comments on the consultation paper can be submitted via the “send your comments” button available on the EBA’s consultation page. The deadline for submissions is 4 February 2025.

The EBA will also host a virtual public hearing on the consultation paper on 16 January 2024, from 15:00 to 17:00 (Paris time). Interested stakeholders are invited to register using the provided link by 3 January 2024, at 16:00 CET. Dial-in details will be shared with those who complete the registration process.

All contributions will be published after the consultation closes, unless participants request confidentiality.

Get ready for the changes

The new regulations are about to come into force, so if you need help understanding the new RTS standards or how to comply with the changes in the AML/CFT regulations, please do not hesitate to contact us. We will be happy to answer all your concerns and help you prepare for your new legal obligations.