What is the scope of the Travel Rule in Germany?
Transfers of crypto virtual assets that involve virtual asset service providers (VASPs).
Who is the supervisory body for VASPs in Germany?
Federal Financial Supervisory Authority (BaFin)
What is the Travel Rule threshold in Germany (BaFIN)?
EUR 0
Under this threshold, information still needs to be exchanged:
originator and beneficiary's names;
originator and beneficiary's account numbers or, in the absence of such an account, the unique transaction number.
What are BaFIN's requirements for Travel Rule information to be exchanged?
originator's name;
originator's account number, or, in the absence of such an account, the unique transaction number;
originator's address, official personal document number, customer identification number or date and place of birth.
beneficiary's name;
beneficiary's account number, or, in the absence of such an account, the unique transaction number.
If the transfer happens between obliged entities located in the EU, the following applies:
originator and beneficiary's account number, or, in the absence of such an account, the unique transaction number.
On request of beneficiary VASP or official authorities, the following information will have to be provided within three (3) business days:
for transfers of funds exceeding EUR 1000, names of originator and beneficiary, account numbers as well as originator's address, official personal document number, customer identification number or date and place of birth.
for transfer of funds not exceeding EUR 1000, names of originator and beneficiary as well payment account numbers.
If the transfer happens with obliged entities located outside the EU, the following applies:
for transfers of funds exceeding EUR 1000, names of originator and beneficiary, account numbers as well as originator's address, official personal document number, customer identification number or date and place of birth.
for transfer of funds not exceeding EUR 1000, names of originator and beneficiary as well payment account numbers.
Other obligations related to the Travel Rule in Germany:
When dealing with self-hosted wallets, enhanced due diligence must be applied and risk-appropriate measures taken to manage and mitigate the risks of money laundering and terrorist financing. In particular, a risk-appropriate measure is the collection, storage and verification of the name and address of the beneficiary or the principal for whom no VASP is acting in the transfer and who is not a contractual partner of the obliged party. This means requiring proof of ownership.
When do you need to comply with the Travel Rule in Germany?
1 October 2021
However, VASPs that are unable to fulfil all or some of the requirements due to reasons beyond their control, such as a lack of technical capability, must inform BaFin by 30 November 2021 and may request a deferral for up to 24 months. They must explain what those reasons are and how they intend to remove the obstacle. In addition, they must state what other measures they are taking to minimise the money laundering risks when they are conducting virtual asset transfers.
Which regulations are applicable to the German Travel Rule?
Crypto Asset Transfer Ordinance
REGULATION (EU) 2015/847 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
What else do you need to know about the Travel Rule in Germany?
The custody of virtual assets, defined as the custody, management and protection of virtual assets or private cryptographic keys used to keep, store or transfer virtual assets for others, requires a license by the financial authority Bafin.
