Italy's New Rule Mandates Crypto Banking Sanctions Screening

On September 23, 2026, the Bank of Italy quietly rewrote crypto banking compliance for any firm moving euros or digital assets in the EU. The central bank now requires both sides of every funds or crypto-asset transfer to be screened against EU and national sanctions lists. This goes beyond existing Travel Rule expectations and makes sanctions screening crypto transfers a per-transfer duty for global business crypto banking.

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What does the Bank of Italy's new rule require?

On September 7, the Bank of Italy published a formal clarification addressed to payment service providers (PSPs) and crypto-asset service providers (CASPs). The document, reported by AML Intelligence on September 23, 2026, instructs firms to always verify the originator’s and beneficiary’s data for transfers of funds or crypto-assets against current EU and national sanctions lists. No materiality threshold applies. Providers must screen both parties per transfer.

The Bank of Italy crypto regulation allows two narrow exceptions. Instant payments and formally assessed low-risk domestic Italy-to-Italy fund transfers may be handled with daily customer screening. The exemptions do not cover cross-border payments or any crypto-asset transfer.