One year ago, the European Commission published an AML/CFT packageconsisting of 4 legislative proposals that once implemented will transform the Union’s legal and institutional AML/CFT framework.

One of these proposals is the recast of the 2015 Funds Transfer Regulation. This recast serves to bring the EU’s legal framework in line with the Financial Action Task Force (FATF) standards which extended the application of its Recommendation 16 to virtual asset service providers. It means that to ensure traceability, these entities, which will now be included in the regulatory perimeter by the Market in Crypto Assets Regulation, will have to include information about the originator and beneficiary of the crypto-assets transfers, just as PSPs/IPSPs currently do for wire transfers. This is known as the “travel rule”.