Travel Rule Information

It is crucial for all SuisseBase™ users to carefully review the following information, as there have been significant updates to the Travel Rule requirements.

What is the Travel Rule?

On June 1, 2019, the Financial Action Task Force (FATF), an international authority dedicated to combating money laundering and terrorist financing, officially recommended that member countries adopt value transfer regulations known as the Travel Rule. This regulation mandates the collection and transmission of specific information regarding the parties involved in digital asset transfers between financial institutions. The Travel Rule enhances transparency and mitigates the risk of illicit financial activities.

Is the Travel Rule Mandatory?

Yes, the Travel Rule is mandatory. The Swiss Financial Market Supervisory Authority (FINMA) has been proactive in regulating crypto assets. FINMA categorizes tokens into payment, utility, and asset tokens and applies appropriate regulations. As part of the Anti-Money Laundering Act, FINMA has applied these regulations to Virtual Asset Service Providers (VASPs) and has clarified the Travel Rule's application in the FINMA-AMLO legislation (Article 10). This guidance was published on August 26, 2019, and became effective on January 1, 2020.

How Do I Comply with the Travel Rule?

Users must provide supplementary information during digital asset transfers to comply with the Travel Rule. This includes:

Outgoing Transfers

When transferring digital assets from SuisseBase™ to another institution (e.g., a receiving digital asset exchange or external wallet), you must provide detailed information about the beneficiary party. This includes names, wallet addresses, residential addresses, and other relevant details.

Incoming Transfers

When receiving digital assets from an originating institution (e.g., a digital asset exchange), you must declare the details of the originating party. SuisseBase™ will also require the originating institution to provide specific information, including names, wallet addresses, and residential addresses. This information will accompany the digital asset transfer instructions.

How Will This Affect Me Now?

To ensure compliance with the Travel Rule, SuisseBase™ is implementing several measures to minimize user inconvenience:

Outgoing Digital Token Transfers

For transfers to external wallets or other cryptocurrency exchanges, you must provide the beneficiary party’s name and additional applicable information before the transfer can proceed. If the wallet address and associated details provided previously remain valid, you may not need to re-submit the beneficiary party’s information for subsequent transfers to the same address.

Incoming Digital Token Transfers

You will need to provide details about your incoming transfers, including the name of the originating party and whether the transfer originates from a non-custodial wallet or a cryptocurrency exchange.

How Will This Affect Me in the Future?

Future regulatory developments will require adherence to evolving compliance standards. Specifically, you will be directed to provide ownership information for transfers involving non-custodial wallets. While this information provision is currently voluntary, it is anticipated to become mandatory as regulatory requirements continue to evolve.

Should you have any questions or require assistance, don't hesitate to get in touch with our Customer Support team through the in-app chat or at Support@SuisseBase.ch.