Forthcoming new rules on information accompanying transfers of crypto-assets

In 31 May 2023, Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets (“Regulation (EU) 2023/1113”) was adopted. It recasts Regulation (EU) 2015/847 on information accompanying transfers of funds (“Regulation (EU) 2015/847”) to include in its scope crypto-assets as defined in Regulation (EU) 2023/1114 on markets in crypto-assets (“MiCAR”). In addition, a few adjustments are brought about to the AML framework.

Regulation (EU) 2015/847 imposes certain rules in the context of transfers of funds, in any currency, where at least one of the payment service providers (“PSPs”) involved in such transfers is established in the EU. According to these rules, the PSP of the payer has to ensure that transfers of funds are accompanied by specific information on the payer and the payee, the accuracy of which has to be backed up by supporting documentation. As for the PSP of the payee, it has to have effective procedures in place to identify any missing or incomplete information in that respect. Intermediary PSPs are also subject to targeted obligations.

However, Regulation (EU) 2015/847 only applies to transfers of funds, i.e. banknotes, coins, scriptural money, and electronic money, whereas Regulation (EU) 2023/1113 will cover also transfers of crypto-assets.

In a nutshell, crypto-asset service providers (“CASPs”) will now be subject to the same obligations as PSPs with regard to the information on originators and beneficiaries accompanying transfers of crypto-assets where at least one of the CASPs involved in these transfers will be established in the EU.

Regulation (EU) 2023/1113 also sets out additional requirements in terms of policies, procedures and controls that PSPs and CASPs alike will have to comply with, aiming at ensuring an efficient implementation of EU and national restrictive measures. The European Banking Authority has been mandated to issue guidelines on this topic by 30 December 2024.

Lastly, Regulation (EU) 2023/1113 provides for certain amendments to Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (“AMLD”). In particular, all categories of CASPs as defined in MiCAR will now be included within the category of “financial institutions” and will therefore be subject to the AMLD just like credit institutions and investment firms. Furthermore, the AMLD registration requirements for certain CASPs will be removed in light of the single licencing regime for CASPs under MiCAR.

Regulation (EU) 2023/1113 will apply as from 30 December 2024, when Regulation (EU) 2015/847 is repealed.