The Bank of Italy has issued a notice requiring payment service providers and crypto asset service providers to continuously review financial transactions under travel rule procedures, with no minimum amount threshold for automated checks.

Under the notice, relevant institutions must verify the names of both the initiator and the beneficiary when establishing customer relationships, when decisions are made by the European Council, and each time a transaction takes place. Those names must be checked against lists of sanctioned individuals and entities.

The guidance applies to both payment service providers and crypto asset service providers, placing crypto firms within the same monitoring framework for transaction review and sanctions screening. The requirement that automated systems not apply a minimum amount threshold means firms are expected to review transfers regardless of size.

The notice also allows transfer delays when necessary to strengthen sanctions screening. That points to a supervisory preference for stricter controls over uninterrupted transaction processing when compliance concerns arise.

Available information does not clarify whether the notice represents a new legal obligation, a supervisory update to existing rules, or a local implementation of broader European requirements. It also does not specify when the notice was issued or whether any transition period applies.

Why It Matters

This development matters because it raises the compliance bar for regulated crypto intermediaries operating in Italy. Requirements to screen every transaction and verify sanctioned-party exposure at multiple stages can increase operational costs and make transaction monitoring a more central part of day-to-day service delivery.

It also shows how crypto oversight in Europe is increasingly converging with mainstream financial controls, particularly around sanctions and cross-border transfer data. For the sector, that shifts the focus from basic registration toward the quality and consistency of ongoing compliance systems.