Game Regulating Transportation: Guidelines for Passenger Information Sharing During Travel
In the ever-evolving world of cryptocurrencies, compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations has become a crucial aspect for Virtual Asset Service Providers (VASPs) and financial institutions engaged in crypto transfers. One such regulation is the Travel Rule, a key recommendation published by the Financial Action Task Force (FATF) in 2019.
As of mid-2025, around 73-75% of FATF member countries have implemented or are enforcing the Travel Rule for VASPs, in line with FATF Recommendations 15 and 16. Countries and regions with explicit regulatory frameworks or active enforcement of the Travel Rule include the European Union, Singapore, the United States, Turkey, the Cayman Islands, and Australia, among others.
However, global implementation remains fragmented, with different countries setting varying transaction thresholds and enforcement mechanisms, posing challenges for VASPs operating internationally.
To address these challenges, Sumsub offers a comprehensive solution designed to help VASPs navigate the complexities of the Travel Rule. The service involves the collection and sharing of personal data of senders and recipients, as required by the Travel Rule, and identifies and verifies the receiving VASP (Counterparty Due Diligence).
Sumsub's solution also handles transactions with unlicensed/unregistered/unhosted wallets and deals with different de minimis thresholds. It checks for sanctions, watchlists, and adverse media to ensure AML and CFT compliance.
The service automates the process of gathering required customer information, conducting identity verification, and securely transmitting data to counterparties or regulators as mandated by the Travel Rule. It also includes data reporting features tailored for regulatory submissions, such as periodic Travel Rule Returns.
By using Sumsub's Travel Rule solution, VASPs can gain customer trust, maintain a flawless reputation, and avoid huge regulatory fines. The solution is adaptable to evolving obligations, such as changing information requirements under FATF Recommendation 16, through flexible rule-management configurations.
In sum, Sumsub addresses the key pain points of Travel Rule compliance—fragmented regulatory demands, technical complexity, and data privacy concerns—supporting VASPs to operate lawfully and efficiently across multiple jurisdictions.
[1] FATF (2019). FATF Recommendations. Retrieved from https://www.fatf-gafi.org/media/fatf/documents/recommendations/Updated-FATF-Recommendations.pdf [2] Sumsub (2023). Sumsub's Travel Rule Solution. Retrieved from https://sumsub.com/travel-rule [3] Cayman Islands Monetary Authority (2022). VASP Travel Rule Return. Retrieved from https://www.cima.ky/what-we-do/regulation/aml-ctf/virtual-asset-service-providers/vasp-travel-rule-return [4] Financial Crimes Enforcement Network (2021). FinCEN Guidance on the Application of the Bank Secrecy Act to Certain Business Models Involving Convertible Virtual Currency or Digital Assets. Retrieved from https://www.fincen.gov/resources/statutes-regulations/guidance/guidance-application-bank-secrecy-act-certain-business-models-involving-convertible-virtual-currency-or-digital-assets [5] Monetary Authority of Singapore (2020). Notice PS-SG-02: Guidance on the Prevention of Money Laundering and Countering the Financing of Terrorism for Virtual Asset Service Providers. Retrieved from https://www.mas.gov.sg/-/media/MAS/Regulations-and-Market-Conduct/Guidance/Notice-PS-SG-02-Guidance-on-the-Prevention-of-Money-Laundering-and-Countering-the-Financing-of-Terrorism-for-Virtual-Asset-Service-Providers.pdf
- In the realm of fintech and technology, where regulatory compliance is a critical aspect, particularly in the finance and travel industries, Sumsub's Travel Rule Solution offers a breather to Virtual Asset Service Providers (VASPs).
- As fintech continues to influence lifestyle, Sumsub's comprehensive solution helps VASPs navigate complex Travel Rule requirements across multiple jurisdictions, ensuring AML and CFT compliance even for transactions involving unlicensed wallets.
- In line with international efforts to curb money laundering and terrorism financing, such as those by the Financial Action Task Force (FATF) and the Cayman Islands Monetary Authority, Sumsub's Travel Rule Solution automates the process of data collection, sharing, and reporting, supporting VASPs in maintaining a flawless reputation in the ever-evolving industry.
