Travel Rule

The Travel Rule is an AML requirement (from FATF Recommendation 16) obliging Virtual Asset Service Providers to transmit originator and beneficiary information alongside crypto transfers above a set threshold.

Originally a banking rule for wire transfers, the Travel Rule was extended to crypto by FATF. When a transfer between VASPs exceeds the threshold, both sides must exchange identifying data about the sender and recipient. Compliance programs combine Travel Rule data exchange with sanctions screening and KYT so that the counterparty is both identified and risk-checked before funds move.