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Italy’s central bank orders sanctions screening for crypto transfers

Banca d’Italia said crypto asset service providers must build policies and internal controls to enforce EU financial sanctions and improve identification of sanctioned-linked customers and transactions.

Reported · Written up by our desk · Regulation

Italy’s central bank, Banca d’Italia, has ordered mandatory sanctions screening for cryptocurrency transfers, aiming to curb illicit financial flows across the EU, according to Cointelegraph.

In a Monday announcement, the bank said crypto asset service providers must implement policies and internal controls to enforce EU financial sanctions when processing transfers, with an emphasis on identifying customers and transactions linked to sanctioned entities.

The move comes as cryptocurrencies have increasingly been used by Iranian and Russian entities to work around sanctions, Cointelegraph reported.

Cointelegraph cited blockchain data showing the ruble-backed A7A5 stablecoin handled $110 billion in cumulative transactions between February 2025 and May 2026 despite Western sanctions, and it also referenced other reporting on Iran-linked flows and a US Treasury freeze of more than $130 million in crypto held in wallets linked to Iran’s central bank.

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