What is the “Travel Rule” in financial transactions and why does it matter?

To explain it with a little bit of handwaving, the Travel Rule is a BSA (Bank Secrecy Act) rule that came out which basically requires that the movement of money has tracking information with it.

This means, that transactions going through payment networks &/or banking systems should not be anonymous. If and when requested, the audit trail about the origination of the transaction and the end beneficiary of the transactions should be clear and be presentable (when asked, or deemed required).

Cryptocurrencies as you know most, have been anonymous or quasi/semi-anonymous in nature. FATF’s guidelines issued in 2019 under the chair of the United States, recommended that FATF guidelines include the travel rule when it comes to cryptocurrencies.

I did a short vide on this subject

WHAT IS THE TRAVEL RULE?

https://www.youtube.com/watch?v=...

For Further Reading:

• Address AML challenges with the FATF Travel Rule | ComplyAdvantage.
• Inside the Standards Race for Implementing FATF’s Travel Rule - CoinDesk
• The Travel Rule Is Not Enough If Crypto Gets Adopted
• Explaining the FATF Travel Rule - KYC-Chain
• Governments Begin to Roll Out FATF’s Travel Rule Around the Globe