By SanctionsAI team · Updated 2026-08-09

How to implement FATF Travel Rule compliance

The FATF Travel Rule (Recommendation 16) requires VASPs to share originator and beneficiary information for virtual asset transfers above USD/EUR 1,000.

TL;DR: Travel Rule compliance means collecting and transmitting sender/recipient data for crypto transfers above threshold, screening both parties, and storing data for 5 years.

Step 1: Determine applicability

The Travel Rule applies to VASPs (crypto exchanges, custodial wallets). The threshold is USD/EUR 1,000 for cross-border transfers.

Step 2: Collect required data elements

Originator dataBeneficiary data
Full nameFull name
Account number (wallet address)Account number (wallet address)
Physical address OR customer ID OR date/place of birthAccount number (wallet address)

Step 3: Choose a Travel Rule messaging protocol

Options include TRP, IVMS101, OpenVASP, and TRUST. Choose one that interoperates with your counterparty VASPs.

Step 4: Integrate sanctions screening

Before sending or receiving, screen both originator and beneficiary wallet addresses against OFAC SDN.

Integration: Call GET /sanctions?wallet=0x... before executing any transfer above threshold.

Step 5: Store records for 5 years

FATF requires retaining Travel Rule data for at least 5 years. Ensure your storage is auditable.

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Frequently Asked Questions

What is the FATF Travel Rule threshold?
USD/EUR 1,000 for cross-border virtual asset transfers.
Does Travel Rule apply to DeFi?
FATF says DeFi protocols without a central operator are not VASPs. However, front-end operators may have obligations.
What data must VASPs share?
Originator name, wallet, and address/ID/DOB. Beneficiary name and wallet.
How do I screen crypto transfers?
Screen both wallets against OFAC SDN before execution. Use GET /sanctions?wallet=0x...

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