Guide to the Travel Rule (Banking) in the U.S.

The Travel Rule is a regulatory requirement that applies to financial institutions, including money service businesses. The rule requires financial institutions to communicate with each other when users send funds from one financial institution to another. It ensures that certain information travels along with the funds during transactions.

The Travel Rule aims to ensure availability of records for law enforcement authorities.
This is to prevent money laundering and illicit activities, including terrorism.

What are the requirements of the Travel Rule?

When transmitting funds equal to or greater than $3,000 (or its foreign equivalent), financial institutions must include and send specific information in the transmittal order:

  • Name of the transmittor
  • Account number of the transmittor (if used)
  • Address of the transmittor
  • Identity of the transmittor’s financial institution
  • Amount of the transmittal order
  • Execution date of the transmittal order
  • Identity of the recipient’s financial institution

If received, information about the recipient:

  • Name
  • Address
  • Account number
  • Any other specific identifier of the recipient

What are the requirements for intermediary institutions?

Intermediary financial institutions must pass on the specified information they receive from a transmittor’s financial institution or the preceding intermediary institution.
They may also receive supplementary information about a payment beyond what the rule requires, as long as all the required information is included in subsequent payment orders.

Does the Travel Rule apply to crypto transactions?

Yes, the Travel Rule applies to crypto and digital currency transactions. See our Guide to Crypto Regulations.

Related Pages

See our Guide to Finance and Banking Regulations

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