European Banking Authority Issues Sanctions Compliance Guidelines
New guidelines issued by the European Banking Authority are designed to help EU financial firms set common policies and procedures to comply with sanctions, export controls and other “restrictive measures.” The document offers separate guidelines for large banks and other sets of financial institutions, such as payment service providers and crypto-asset service providers, and includes recommendations around sanctions screening, risk assessments, due diligence and customer monitoring.
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The report covers the financial industry’s compliance and reporting obligations and how they should be implementing them, saying large banks should be identifying and assessing “which areas of their business are particularly vulnerable or exposed to restrictive measures and to circumvention of restrictive measures,” and should have in place “up-to-date policies, procedures and controls to ensure that they can comply effectively with restrictive measures regimes.”
Payment service providers and crypto-asset service providers should have controls in place to make sure they don’t make “any funds or crypto-assets available” to parties subject to sanctions and trade controls, and don’t “carry out financial transactions or services prohibited by restrictive measures”; and they bshould make sure they “manage risks of circumvention of restrictive measures.”
The banking authority said the guidelines apply beginning Dec. 30, 2025.