Italy's Central Bank Tightens Crypto Screening for Sanctions Evasion

Italy's central bank has strengthened measures to prevent sanctions evasion through cryptocurrency transactions. Banca d'Italia issued a communication to payment service providers and crypto asset service providers, stressing that all financial transactions must be screened using travel rule-related procedures.

The bank emphasized that there are no minimum amounts for these checks, aiming to block EU sanctions evasion. The tightening of rules prioritizes blocking Russian actors over speed, accepting potential delays in transfers.

Banca d'Italia called on intermediaries to ensure that their systems do not include minimum amount thresholds that would limit the number of transfers subjected to checking. This move aims to prevent criminal actors from splitting funds to avoid detection.