Bank of Italy Tightens Sanctions Screening for Crypto Transactions, Bans Minimum Amount Thresholds

TechFlow reports that on September 11, according to Bitcoin.com, Italy’s central bank (Banca d'Italia) issued guidance to payment service providers (PSPs) and crypto asset service providers (CASPs) to strengthen sanctions screening mechanisms for financial transactions. The notice explicitly states that institutions must not set minimum amount thresholds for transaction screening, in order to prevent criminals from evading automated detection systems by splitting funds (structuring). This measure aims to plug regulatory loopholes and prevent bad actors from leveraging digital assets to circumvent EU sanctions frameworks, with a specific focus on entities linked to Russia. The Bank of Italy also mandates that compliance reviews must be prioritized, even if it causes transfer delays.