Overview of Financial Action Task Force (FATF)

Travel Rule in Singapore and who it applies to

According to Paragraph 13 of the Notice PSN02, the Travel Rule applies to payment service providers when sending or receiving one or more digital payment tokens by value transfer on account of the originator or beneficiary of the value transfer.

This means that any cryptocurrency transaction on behalf of a customer should follow the MAS established Travel Rule requirements, in line with the updated FATF Standards, Recommendation 16 for wire transfers.

"The FATF Recommendation 16, (the “Travel Rule”), was originally intended to help AML/CTF efforts in relation to wire transfers however, in recent times, the Travel Rule has been expanded to include Virtual Asset Service Providers (“VASPs”) (viz. Crypto exchanges). The Travel Rule would therefore require VASPs to “include required and accurate originator information, and required beneficiary information, on wire transfers and related messages, and that the information remains with the wire transfer or related message throughout the payment chain”."

Source: CNP Law, 5 Aug 2021