What is the Travel Rule?
The virtual asset “Travel Rule”, formally known as the
“Financial Action Task Force (FATF) Recommendation 16”,
requires Virtual Asset Service Providers (VASPs) to share and hold
specific customer information with recipient institutions when
performing transactions involving virtual assets.
The Travel Rule is similar to the requirements imposed on
traditional financial institutions in many jurisdictions when
performing wire transfers in fiat currency. The Travel Rule is
implemented in the Cayman Islands under PART XA of the Anti-Money
Laundering Regulation (as revised) (the AMLRs). The Travel Rule
aims to enhance transparency and mitigate illicit activities such
as money laundering and terrorist…
