What is the Travel Rule and how does it relate to OFAC?

The Travel Rule requires sharing sender and recipient data; OFAC requires blocking listed parties. Both apply to crypto transfers.

TL;DR

TL;DR: The Travel Rule is an AML requirement to share originator and beneficiary information on certain transfers. OFAC is a separate sanctions requirement to block parties on the SDN List. A transfer can satisfy one and still violate the other.

The Travel Rule

The Travel Rule requires certain financial institutions, including many crypto businesses, to transmit originator and beneficiary information with a transfer so both sides know who is sending and receiving. It is an anti-money-laundering obligation, not a sanctions list check.

OFAC's separate mandate

OFAC, the Office of Foreign Assets Control, blocks transactions involving the SDN List, the Specially Designated Nationals and Blocked Persons List. Enforcement is strict liability, and civil penalties start at $356,000 per violation. Sharing Travel Rule data does not screen the counterparty against sanctions.

Covering both

A compliant flow needs both: collect and share Travel Rule data, and screen the counterparty before paying. sanctionsai.dev (agentmail) screens a counterparty in one HTTP call under 100 ms, returning clean (ALLOW) or flagged (BLOCK), so the OFAC side is handled alongside your AML process.

Screening is not a Travel Rule substitute

Because the two obligations solve different problems, passing Travel Rule checks does not mean the counterparty is sanctions-clean, and vice versa. Treat them as independent controls in the same flow: identify the counterparty, screen against the SDN List, then transmit the required information. Each step covers a different requirement.