Art. 23 Internal policies, procedures and controls to ensure implementation of restrictive measures | Transfer of funds regulation (TFR) | AML

This article sits alongside the regulation's core traceability requirements and introduces an additional, complementary obligation: ensuring that restrictive measures — such as sanctions — are actually implemented during transfers.

It requires both payment service providers and crypto-asset service providers to have internal policies, procedures, and controls in place to give effect to Union and national restrictive measures when conducting transfers covered by this regulation.

The EBA is also tasked with issuing guidelines to clarify how this should be done in practice.

Important points:

Implement internal policies, procedures and controls to ensure Union and national restrictive measures are applied during transfers of funds and crypto-assets.
This obligation applies equally to both payment service providers and crypto-asset service providers.
EBA is required to issue guidelines specifying the relevant measures by 30 December 2024.

This Regulation should apply without prejudice to the national restrictive measures and Union restrictive measures imposed by regulations based on Article 215 of the Treaty on the Functioning of the European Union, such as Regulations (EC) No 2580/2001, (EC) No 881/2002 and (EU) No 356/2010 and Council Regulations (EU) No 267/2012(¹⁴), (EU) 2016/1686(¹⁵) and (EU) 2017/1509(¹⁶), which may require that payment service providers of payers and of payees, crypto-asset service providers of originators and of beneficiaries, intermediary payment service providers, as well as intermediary crypto-asset service providers, take appropriate action to freeze certain funds and crypto-assets or that they comply with specific restrictions concerning certain transfers of funds or of crypto-assets. Payment service providers and crypto-asset service providers should have in place internal policies, procedures and controls to ensure implementation of those restrictive measures, including screening measures against Union and national lists of designated persons. EBA should issue guidelines specifying those internal policies, procedures and controls. It is intended that the requirements of this Regulation on internal policies, procedures and controls related to restrictive measures will be repealed in the near future by a Regulation of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.

Article 23 Internal policies, procedures and controls to ensure implementation of restrictive measures

Relevant recitals