The European Banking Authority has suggested that EU supervisors consider whether distributed ledger technology (DLT), such as that used in cryptocurrencies, is in use when assessing money laundering risks. The draft guidance recommends that banks and payment providers scrutinise crypto companies more closely when considering a client relationship. The draft also proposes that an assessment of the infrastructure technology prevalent in the sector, particularly DLT, be added to the list of factors considered by national authorities when assessing money laundering threats. The guidance is open for consultation until June 29. A new EU rule, the Transfer of Funds Regulation, is due to be voted on in April, and the bloc's banking watchdog is preparing to implement those laws.

(By Jack Schickler)