The European Banking Authority (EBA), the European regulator tasked with addressing weaknesses in the European banking sector, has issued two sets of guidance, which include specific guidance for payment service providers (PSPs) and crypto asset service providers (CASPs). On November 14, the EBA published guidelines specifying what measures PSPs and CASPs must take when transferring funds or cryptocurrencies in order to comply with the European Union and national restrictive measures regime. According to the EBA, these guidelines ensure the implementation of European Union and national sanctions. Weaknesses in controls, internal policies and procedures could pose legal and reputational risks to Financial Institution Groups, including PSPs and CASPs, according to the EBA. In addition, weaknesses in Financial Institution Groups in these areas could also "weaken" the effectiveness of the European Union's restrictive measures regime. This could lead to circumvention of rules, thus affecting the stability of the European Union's financial ecosystem, the EBA stressed. According to the ECA, the guidance is applicable as of December 30, 2025.