# Travel Rule

The Travel Rule, from FATF Recommendation 16, requires financial institutions transferring virtual assets to transmit originator and beneficiary information alongside the transfer, as in correspondent banking. Custody platforms must collect, verify, and exchange this data with counterparties before assets move.

## Travel Rule inside the transaction flow

Compliance means identifying the counterparty institution, exchanging required data through interoperable protocols, screening against sanctions, and blocking transfers that cannot carry compliant data, all before signing, not after.

Taurus-PROTECT builds Travel Rule workflows, KYT screening, and AML controls into the transaction pipeline, so compliance is enforced by the same policy engine that governs signatures.

FAQ:

- When does the Travel Rule apply? Whenever a covered institution transfers virtual assets above the applicable threshold, which several jurisdictions set at zero for institution-to-institution transfers. Practically, banks treat every institutional transfer as in scope.

Related: https://www.taurushq.com/glossary/know-your-transaction-kyt/ https://www.taurushq.com/protect/

Learn more: https://www.taurushq.com/glossary/travel-rule/