Travel Rule Implementation

EU specific guidelines: EU Specific TR Details and Instructions

What is the Travel Rule?

The Travel Rule is a regulatory requirement designed to prevent money laundering and terrorist financing, particularly in the financial and cryptocurrency industries. It comes from the Financial Action Task Force (FATF) guidelines. FATF is an international organization created to combat money laundering, terrorist financing, and other threats to the integrity of the global financial system.

The goal of the Travel Rule is to prevent companies and institutions to participate in money laundering. Involvement of the institutions and companies may result in money laundering at very large scale.

The Travel Rule mandates that certain information about the sender and receiver of a transaction to "travel" with the transaction itself when money (or value) is transferred between financial institutions or Virtual Asset Service Providers (VASPs) (or Crypto-Asset Service Providers: CASPs).

The intent of the Travel Rule is to retain Sender and Recipient details for every transaction and exchange such information between VASPs when certain threshold for transaction value is reached.

For transactions over a certain threshold (often $1,000 or €1,000, but this depends on local regulations), the following details are typically required:

• Sender (customer) Information, including: full name, wallet address, and a physical address, national ID number, or date of birth and place of birth other identifying information. The Travel Rule now forces you to disclose and attach it to the transaction so that it may be examined by any authorized party later in time.

• Receiver Information, including: name & wallet address. If you haven’t already implement strict KYC, then the Travel Rule now forces the matter. To comply with the Travel Rule, you must now (at least) collect your Receivers Name.

Glossary

The Travel Rule introduces some new terms and acronyms. Here’s a quick reference: