Travel rule
The travel rule is the requirement that financial institutions and crypto-asset service providers send identifying information about the payer and payee along with a transfer. It comes from FATF Recommendation 16 and is applied through national law, with different thresholds in the US and the EU.
This page explains the rules in general terms and is not legal or regulatory advice. Check the primary source and take advice on how the rules apply to your firm.
Jurisdiction: International: FATF Recommendation 16, revised June 2025 with effect by the end of 2030, applied to virtual assets through Recommendation 15. United States: 31 CFR 1010.410(f), $3,000 threshold. European Union: Regulation (EU) 2023/1113, applying from 30 December 2024.
How it works
FATF Recommendation 16 sets payment transparency standards for wire transfers, and Recommendation 15 applies them to virtual assets. FATF revised Recommendation 16 in June 2025. The changes standardise the information that accompanies peer-to-peer cross-border payments above USD/EUR 1,000 (name, address, date of birth), require tools against fraud and error such as verifying recipient details, and take effect by the end of 2030. In FATF's 2025 survey, 85 of the 117 jurisdictions that answered on the travel rule (excluding those that prohibit virtual asset service providers) had passed travel rule legislation for virtual assets.
In the US, 31 CFR 1010.410(f) applies to transmittals of funds of $3,000 or more. The transmittor's financial institution, and any intermediary located in the US, must include the required information in the transmittal order. Recordkeeping duties apply at the same threshold.
In the EU, Regulation (EU) 2023/1113 has applied since 30 December 2024. For crypto-asset transfers there is no minimum amount: every transfer involving a crypto-asset service provider must carry originator and beneficiary information. For a transfer over EUR 1,000 to or from a self-hosted address, the provider must assess whether its customer owns or controls that address. For fund transfers over EUR 1,000, the payee's provider must verify the payee information before crediting.
Example
A US firm sends a $2,500 wire and a $3,500 wire to the same recipient on different days. Under 31 CFR 1010.410(f), the $3,500 wire must carry full travel rule information, while the $2,500 wire falls below the threshold. In the EU, a EUR 200 USDC transfer between two crypto-asset service providers must still carry originator and beneficiary details, because the crypto rules have no threshold.
Frequently asked questions
Does the travel rule apply to stablecoin transfers?
Yes, where a regulated provider is involved. FATF applies it to virtual asset service providers through Recommendation 15, and the EU rules cover every crypto-asset transfer involving a crypto-asset service provider, including transfers to or from self-hosted addresses.
What changed in June 2025?
FATF standardised the data required for cross-border payments above USD/EUR 1,000, added requirements for tools that check recipient details, clarified the card payment exemption and set implementation by the end of 2030.
Where Polynopsis fits
Polynopsis does not perform travel rule checks or send payer data. It reads stablecoin wallet balances through public addresses, read-only.
Related terms
Sources
- FATF updates Standards on Recommendation 16 on Payment Transparency (18 June 2025) · Financial Action Task Force
- Explanatory note for revised R.16 · Financial Action Task Force
- Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers (June 2025) · Financial Action Task Force
- 31 CFR 1010.410, Records to be made and retained by financial institutions · Electronic Code of Federal Regulations
- Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets · EUR-Lex, Publications Office of the European Union
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
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