The FATF Travel Rule requires VASPs to share sender and recipient information for crypto transfers above a threshold; Plastron does not handle Travel Rule data but screens the underlying wallet for AML risk free.
FATF Travel Rule for Crypto Transfers
The FATF Travel Rule requires VASPs to collect and transmit originator and beneficiary information on transfers above threshold — and to screen both wallets for sanctions risk.
The Financial Action Task Force introduced the Travel Rule for crypto in its 2019 updated Recommendation 16, requiring VASPs to obtain, hold, and transmit originator and beneficiary information on virtual asset transfers above certain thresholds — $1,000 in the US, €1,000 in the EU, and equivalent amounts in most other jurisdictions. The rule extends the wire transfer Travel Rule from traditional finance into crypto, with significant compliance implications for exchanges, custodians, and any business processing crypto transfers on behalf of customers. Unlike traditional wire transfers, crypto transactions are pseudonymous by design: the blockchain shows wallet addresses but not the identities behind them. This creates a technical gap between what the Travel Rule requires — verified counterparty identification — and what the blockchain natively provides. VASP-to-VASP transfers can be handled through dedicated Travel Rule protocols (TRISA, OpenVASP, Notabene), but transfers involving self-hosted wallets remain a regulatory grey area in many jurisdictions. The other half of Travel Rule compliance — which is often overlooked — is the sanctions screening requirement: you must not only collect beneficiary information but also screen both parties against OFAC and other sanctions lists before processing the transfer. A Travel Rule-compliant transfer to a sanctions-listed beneficiary is still a regulatory violation. Plastron covers the wallet screening component: before you initiate or accept a crypto transfer, screen both wallets to confirm neither carries sanctions or high-risk exposure.
FATF Travel Rule for Crypto Transfers, and what a scan shows
Pre-Transfer Wallet Risk Screening
Plastron screens any Ethereum wallet against the full OFAC SDN list and over 3,800 flagged addresses before a transfer is initiated. Both the originator and beneficiary wallets should be screened — a clean originator can still create compliance exposure if the beneficiary wallet has sanctions links or mixer history that will appear in the originator's transaction history after the transfer completes.
Counterparty Risk Assessment for Transfer Decisions
Our counterparty analysis identifies entity types, risk flags, and exposure categories for the receiving wallet. For a VASP deciding whether to process an incoming or outgoing transfer, this assessment provides the wallet-level due diligence needed to make a documented, risk-based decision about whether to proceed, apply enhanced due diligence, or reject the transfer.
Documentation for Travel Rule Compliance Files
The scan report provides structured data on wallet risk that can be included in your Travel Rule compliance documentation. When regulators or auditors review your Transfer Rule records, having a dated wallet screening report for each significant transfer demonstrates that you applied a risk-based approach to the transaction — an important element of any AML programme audit.
What the scan looks for
What we actually screen against
Measured from Plastron’s own screening corpus, rebuilt on every deploy.
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