Definition. An anti money laundering rule that requires providers to collect and pass on information about the payer and payee with a transfer of cryptoassets.
How it works
For bank wire transfers, rules have long required the sending bank to pass the payer's details to the receiving bank. The Financial Action Task Force asked countries to apply the same idea to cryptoasset transfers between providers. When a company withdraws bitcoin from an exchange to another provider, or receives bitcoin from one, the providers may exchange the names and other details of the people involved.
The FCA says that from 1 September 2023, cryptoasset businesses in the UK must collect, verify and share information about cryptoasset transfers. The rules are in Part 7A of the Money Laundering Regulations 2017. Providers may also ask for information about transfers to or from wallets the customer controls itself. The details they ask for depend on the transfer and on their own risk assessment.
US rules require financial institutions to include specified information with transmittals of funds of $3,000 or more, under 31 CFR 1010.410(f). FinCEN's 2019 guidance on convertible virtual currency business models says this applies to transfers of virtual currency by money services businesses.
Why it matters for a company
A company moving its own bitcoin from an exchange to its multisig wallet may be asked whether the destination is its own and to name the owner. A company paying a supplier through a provider may be asked for the supplier's details. Withdrawals can be held until the questions are answered, which matters if a payment is time sensitive.
The useful response is preparation: keep a record of the company's own wallets and what they are for, and a verified record of supplier details. Being able to answer quickly, and consistently, avoids delays and reduces the chance of an account review.
Common mistakes
- Withdrawing a large amount on a deadline without expecting questions.
- Giving inconsistent answers about who owns a wallet.
Related
Sources
Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.
- FCAExpectations for UK cryptoasset businesses complying with the Travel Rule
- legislation.gov.ukMoney Laundering Regulations 2017, Part 7A: information on the payer and payee for cryptoasset transfers
- Cornell LII (unofficial copy of the CFR)31 CFR 1010.410(f): information that must travel with transmittals of funds of $3,000 or more
- FinCENFIN-2019-G001: business models involving convertible virtual currencies (PDF)
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Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.
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