From September 1, UK-registered VASP are required to comply with the FATF’s Travel Rule. It requires monitoring of crypto transactions for AML purposes.
The Travel Rule requires a covered institution handling digital-asset transfers to pass customer information to the recipient exchange or institution. The data must include the sender’s and recipient’s names and addresses, as well as account details.
If a payment is sent from a jurisdiction that has not implemented the Travel Rule, a VASP must conduct a risk assessment regarding whether to proceed with the transfer, according to the directive.
With regard to transfers from the United Kingdom to countries that have not adopted the Travel Rule, the FCA requires companies to collect and verify all necessary data.
Earlier, the FATF expressed dissatisfaction with the pace of implementation Travel Rule.
Since June 1, the rule has been in force in Japan.