Banca d'Italia mandates sanctions checks on all crypto transfers

Banca d'Italia has issued a directive requiring all payment service providers and crypto asset service providers (CASPs) to conduct comprehensive sanctions checks on all cryptocurrency transfers. The mandate emphasizes that there are no minimum-value thresholds for these screenings, a measure designed to prevent individuals from splitting funds into smaller amounts to evade detection.

The directive aims to align Italian operations with European Union sanctions-screening and travel-rule requirements, specifically targeting the prevention of sanctions evasion by designated individuals and entities. The central bank noted that automated screening systems should be calibrated to balance the reduction of false positives with the necessity of identifying sanctioned subjects. This regulatory tightening prioritizes the blocking of illicit actors over the speed of transaction processing.