On Nov. 15, 2024, RSA FIU published Directive 9 on implementation of travel rule re crypto asset transfers, in accordance with FATF recommendations, in official gazette.
Also published feedback on consultation made available for comment in Apr. 2024.
Feedback clarified directive covers both domestic and cross-border crypto transactions.
Most commentators advocated for transitional period from 6 months to a year before directive enters into force; providers need more time to deploy technical solutions fully.
Travel rule directive will enter into force on Apr. 30, 2025.
RSA FIU issued consultation paper, draft directive 9, on implementation of the travel rule for those accountable institutions that engage in crypto asset transfers.
Travel Rule
Proposed directive will require accountable institutions that engage in crypto asset transfers, for or on behalf of their clients, to implement the so-called travel rule.
Implements FATF Recommendation 16, in context of crypto asset transfers.
Objective of FATF Recommendation 16 is to prevent terrorists and other criminals from access to electronically facilitated funds transfers for moving their funds, and to facilitate the detection of instances of such misuse when it occurs.
Crypto asset service providers that fail to comply with provisions of directive are subject to an administrative penalty, in accordance with section 45C, FIC Act
Effectiveness
Comments must be submitted to RSA FIU by close of business on May 31, 2024.
Nov. 2024 Final Directive Issued
On Nov. 15, 2024, RSA FIU published Directive 9 on implementation of travel rule re crypto asset transfers, in accordance with FATF recommendations, in official gazette.
Also published feedback on consultation made available for comment in Apr. 2024.
Feedback clarified directive covers both domestic and cross-border crypto transactions.
Most commentators advocated for transitional period from 6 months to a year before directive enters into force; providers need more time to deploy technical solutions fully.
Travel rule directive will enter into force on Apr. 30, 2025.
Regulators
RSA FIU
Entity Types
B/D; Bank; IA; Inv Co; MSB
Reference
OG 51556, Ntc PR, FS, Dir 9/2024, 11/15/2024; PR, CP, Dir 9/2024, 4/18/2024
