Relevant to: UK Crypto Asset Firms complying with the Travel Rule
According to the United Kingdom’s Financial Conduct Authority (FCA), crypto asset firms operating in the UK will be required to comply with the Financial Action Task Force’s Travel Rule starting on Sept. 1, 2023. When the rule becomes effective, compliance with the rule is still expected even when a crypto asset business uses a third-party supplier. This means compelling all crypto firms to collect, verify, and share information. Despite the FATF’s call, many countries have failed to implement the Travel Rule due to delays in adoption and different national timelines for enforcement of the Travel Rule across jurisdictions.
In accordance to the FCA regulator’s statement, in instances where funds are being sent to a jurisdiction without the Travel Rule, the FCA said crypto firms must still collect and verify the information before a transfer is made. If the funds are being transferred from a jurisdiction without the Travel Rule, the necessary risk-based assessments must be undertaken before deciding to avail these to the beneficiary or not.
For more information on the Travel Rule and its implementation you can contact us at info@mnkriskconsulting.com or 25 508201.