Finance09 September, 20262 min read
Banca d’Italia Orders Sanctions Screening For Every Cryptocurrency Transfer By CASPs
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Banca d’Italia orders mandatory sanctions screening for every crypto transfer by CASPs. No minimum value threshold; all transfers must be checked against sanctions lists.
Italy mandates full screening
Italy’s central bank, Banca d’Italia, ordered mandatory sanctions screening for cryptocurrency transfers to help curb illicit flows across the EU, directing crypto-asset service providers (CASPs) to put policies and internal controls in place when processing transfers. In a Monday announcement, Banca d’Italia said CASPs should ensure adequate controls to identify customers and transactions linked to sanctioned entities, and the directive requires screening without relying on a minimum transaction value.
Crypto Briefing described the change as eliminating minimum thresholds for screening, forcing crypto service providers to check every single transaction against sanctions lists. The guidance also ties back to European Banking Authority guidelines (EBA/GL/2024/15), which took effect in Italy on December 30, 2025, and it clarifies that exceptions for instant payments do not extend to crypto transfers managed by CASPs.
No threshold, check both sides
Banca d’Italia warned CASPs that sanctions screening must be carried out on every individual crypto transfer, regardless of its value, and it specifically instructed operators not to configure internal systems with a minimum transaction threshold that could allow smaller transfers to escape automated screening. Digital Watch Observatory said firms must check information on both the originator and beneficiary before executing a transaction, and it framed the requirement as consistent application of sanctions controls even to low-value transfers.
Grafa similarly reported that Italian crypto providers must screen every transfer for sanctions, regardless of its value, and that the checks must cover sanctions risks even when a transfer falls below a specific monetary threshold. The same Grafa account said Banca d’Italia also told firms to review their screening systems, sanctions lists, alerts and procedures for handling potential matches, reinforcing that the communication clarified existing obligations rather than introducing a new rule requiring manual checks on every crypto transfer.
Operational pressure and penalties
Crypto Briefing said CASPs that fail to meet these requirements face both administrative and criminal penalties under Italian law, and it described the immediate impact as falling on the operational budgets of Italian CASPs. The same source said the nine authorized Italian CASPs face deadline pressure to reassess their screening mechanisms and alert procedures to ensure full compliance with EU and national sanctions standards.
Cryptonews.net added that cryptocurrencies are increasingly being used by Iranian and Russian entities alike to avoid financial sanctions, and it cited CertiK’s figure that the Russian ruble-backed A7A5 stablecoin processed $110 billion in cumulative transactions between February 2025 and May 2026. Cryptonews.net also reported that on July 14, US Treasury Secretary Scott Bessent said American authorities had directed a freeze of more than $130 million in crypto held in wallets linked to Iran’s central bank, underscoring why Banca d’Italia’s screening directive is aimed at curbing illicit flows across the EU.