Travel Rule

To understand the purpose of 21 Travel Rule, it is fundamental to grasp what the Travel Rule is. The Travel Rule is a recommendation set up by the Financial Action Task Force (FATF) to address Money Laundering and Terrorist Financing. According to the Travel Rule, specific personal data must be exchanged with digital asset transactions. As the Travel Rule is a recommendation countries are not obliged to implement it by a specific date or at all, resulting in global mismatched implementation statuses. Additionally, implementing regions can deviate from the recommendation in terms of information exchanged or when information should be exchanged. Once implemented by a region, the Travel Rule becomes law, and not exchanging this information will be considered illegal. In other words, digital asset service providers (VASPs) like exchanges and banks will be obliged to collect and store the required customer information.

Gathering, tracking and storing this information can become tedious and unreliable if not done correctly. This is where software like 21 Travel Rule comes into play. Our software allows VASP compliance teams to easily manage and store all this information for each transaction processed.