Italy’s central bank orders sanctions screening for crypto transfers

Italy’s central bank has told crypto service providers to add stronger checks for transfers that may involve sanctioned individuals or entities. The move is meant to support enforcement of EU sanctions and reduce the risk of illicit crossborder flows. According to Banca d’Italia’s announcement on Monday, firms that handle crypto transfers must put internal controls and policies in place to identify customers and transactions linked to sanctions lists. The guidance applies to crypto asset service providers operating in Italy. The decision comes amid wider scrutiny of how cryptocurrencies can be used to move funds around restrictions imposed on Russian and Iranian entities. The bank did not announce new penalties, but it made clear that compliance controls should be adequate to detect and block suspicious activity.