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Travel Rule

The “Travel Rule” refers to Bank Secrecy Act (BSA) rule [31 CFR 103.33(g)], which requires all financial institutions to pass on certain information to the next financial institution, in certain funds transmittals involving more than one financial institution. This rule became effective May 28, 1996 and was issued by the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This rule was issued by FinCEN concurrently with the new BSA recordkeeping rules [31 CRF 103.33(e) and (f)) for funds transfers and transmittals of funds]. The funds transfer rules are designed to help law enforcement agencies detect, investigate and prosecute money laundering and other financial crimes by preserving an information trail about persons sending and receiving funds through funds transfer systems. Recent initiatives like TRISA and OpenVASP have sprouted up to help Cryptocurrency Exchanges adhere to these rules.

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