Response to consultation on Guidelines on preventing the abuse of funds and certain crypto-assets transfers for ML/TF (Travel rule Guidelines)
Question 1. Do you agree with the proposed provisions? If you do not agree, please explain how you think these provisions should be amended, and set out why they should be amended. Please provide evidence of the impact these provisions would have if they were maintained as drafted'?
EBF supports the effort by European Banking Authority (EBA) to issue guidelines that will enhance a common understanding, across the EU, on the application of effective procedures, to detect and manage the transfer of funds and crypto assets lacking the required information on the payer/originator and the payee/beneficiary, by PSPs, IPSPs, CASPS and ICASPs and competent authorities.
The expansion of the scope of Regulation (EU) 2023/1113, recasting Regulation (EU) 2015/847 to cover transfers of crypto – asset while also extending the definition of ‘financial institution’ to include that CASPs are subject to the same AML/CFT system and control requirements as other credit and financial institutions within the scope of Directive (EU) 2015/849, has inevitably increased the need to create a consistent set of rules regarding all legal definitions, categories and requirements pursuant to the envisaged EU AML regulation both for transfer of funds and crypto-assets.
In the attached paper we provide our comments and highlight our suggestions responding to the questions raised by EBA to enhance clarity and consistency to the draft guidelines proposed. This paper reflects the same numbering of paragraphs as per the draft guidelines issued by EBA in the context of this consultation.