What Is the Travel Rule?

The travel rule explained - and how it differs from screening.

TL;DR

TL;DR: The travel rule is the information-sharing obligation: VASPs must share beneficiary-owner and counterparty data for transfers above thresholds. It is distinct from sanctions screening - a payment can be fully travel-rule compliant and still hit a sanctioned wallet.

The obligation

When a VASP transfers funds above the threshold, it must pass along counterparty information to the receiving VASP. This is messaging and data-sharing, not a prohibition check.

Travel rule vs screening

Travel rule: who is the counterparty (data). Screening: may we deal with them (prohibition). The comparison post covers both.

The stack

Regulated VASPs typically need both: a travel-rule network for messaging and a screening API on the payment path. They are complements.