What does the BSA's "Travel Rule" require?

The BSA's "Travel Rule" specifically requires financial institutions to include certain information in payment orders of $3,000 or more. This rule is designed to ensure that the necessary information about the sender and receiver of funds is transmitted along with the payment, thus promoting transparency and aiding in the fight against money laundering and other financial crimes.

The goal of the Travel Rule is to maintain a trail of information that can be used to track illicit activities, making it harder for criminals to exploit the financial system. By mandating that specific data, such as the names and addresses of both the originator and the beneficiary, be included in wire transfers or other payment orders above the specified amount, it enhances the ability of authorities to monitor and investigate potentially suspicious transactions.

This requirement aligns with broader BSA objectives, helping to establish a standard of communication between institutions to maximize compliance and efficiency in regulatory reporting and risk management in the financial sector.