Scenario: Travel Rule Flow
The travel-rule flow scenario - data shared, screen passed, transfer settled.
The setup
Your VASP transfers assets above the threshold to another VASP. The travel rule requires passing counterparty information; screening requires checking the counterparty.
The two obligations
- Travel rule: share beneficiary-owner and counterparty data with the receiving VASP
- Screening: check the counterparty against the SDN list before the transfer moves
The compose
A transfer can be fully travel-rule compliant and still hit a sanctioned wallet. Both layers run: data shared, screen passed, transfer settled - or screen fails, transfer blocked.
The takeaway
Travel rule and screening are complements, not substitutes. The comparison post covers the boundary.