Notabene taps Refinitiv’s World-Check to beef up FATF’s Travel Rule compliance

Rick Steves

“The Travel Rule is a critical step in regulating virtual assets, and will help ensure firms are better able to deter or detect money laundering, terrorist financing and related offenses.”

Notabene has partnered with Refinitiv to address FATF-mandated counterparty screening during Travel Rule transactions.

The Intergovernmental Financial Action Task Force’s (FATF) Travel Rule requires virtual asset service providers (VASPs) to exchange counterparty information when crypto asset transactions exceed certain limits for all their customers.

In addition, VASPs and other obligated entities must screen their customers’ counterparties in order to comply with their targeted AML obligations.

Automatically detect and block transactions routed to sanctioned individuals

The provider of crypto regulatory compliance solutions has integrated with Refinitiv’s World-Check so that Notabene customers can now automatically screen counterparties to the crypto transactions processed on their platform.

In addition, the screening solution is built into Notabene’s rules engine, which allows joint customers to automatically detect and block transactions routed to sanctioned individuals.

This interception can also be applied to incoming transactions–VASPs can stop or reject transfers coming from high-risk individuals.

Phil Cotter, Group Head Customer & Third Party Risk Solutions, Data & Analytics at LSEG said: “The Travel Rule is a critical step in regulating virtual assets, and will help ensure firms are better able to deter or detect money laundering, terrorist financing and related offenses. Refinitiv World-Check has been at the forefront of compliance in this space for over two decades, and we are excited to partner with firms such as Notabene that provide much-needed solutions to address the practical and technical challenges around Travel Rule Implementation. We look forward to expanding our cooperation with Notabene to provide the industry with further value-added solutions.”

Pelle Brændgaard, Chief Executive Officer of Notabene, added: “The Refinitv x Notabene functionality is a fantastic addition to any Compliance Team’s arsenal of Travel Rule tools. The ability to automatically detect and halt transactions to and from sanctioned individuals from a single dashboard advances our efforts to combat money laundering and screening counterparties to cryptocurrency transactions. We’re looking forward to working together to make the process even more seamless and help the industry reduce frictions associated with screening of counterparties.”

Tether has recently tapped Notabene in order to combat money laundering and crime in cross-border VASP-to-VASP transactions. The company powers the largest stablecoin by market capitalization and must be on top of its game always because AML failures risk upsetting regulators.

For now, the partnership is limited to testing the AML solution. Notabene will enable Tether to test complex crypto use cases in a collaborative, low-risk environment, and see how it can send other VASPs the required identifying information in respect of its customers in a secure manner.

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