Germany
What is the scope of the Travel Rule in Germany?
Transfers of virtual crypto assets involving Virtual Asset Service Providers (VASPs).
Who is the supervisory authority for VASPs in Germany?
Federal Financial Supervisory Authority (BaFin).
What is the Travel Rule threshold in Germany (BaFin)?
0 euros
Below this threshold, the following information must still be exchanged:
- Sender and beneficiary names;
- Account numbers of the sender and beneficiary, or, if no such account exists, the unique transaction number.
What are the requirements set by BaFin for the exchange of Travel Rule information?
- Sender's name;
- Sender's account number or, if no such account exists, the unique transaction number;
- Sender's address, official identification document number, customer identification number, or date and place of birth.
- Beneficiary's name;
- Beneficiary's account number or, if no such account exists, the unique transaction number.
If the transmission is between obligated entities located within the EU, the following applies:
- The account number of both the sender and beneficiary or, if no such account exists, the unique transaction number.
Upon request by the VASP of the beneficiary or official authorities, the following information must be provided within three (3) working days for transfers over 1,000 euros:
- the name of the sender and beneficiary, account number, and address of the sender, official identification document number, customer identification number, or date and place of birth.
- For transfers up to an amount of 1,000 euros, the name of the sender and recipient, and the payment account number.
If the transmission is to obligated entities located outside the EU, the following applies:
- For transfers over 1,000 euros, the name of the sender and beneficiary, account number, and address of the sender, official identification document number, customer identification number, or date and place of birth.
- For transfers up to an amount of 1,000 euros, the name of the sender and recipient, and the payment account number.
Other obligations related to the Travel Rule in Germany:
When dealing with non-hosted wallets (a wallet used to store virtual currencies, with self-hosted or non-custodial meaning the owner has full control over the wallet due to having the private key required for making transfers), enhanced due diligence must be applied, and risk-appropriate measures taken to manage and mitigate money laundering and terrorist financing risks. Specifically, this includes the collection, storage, and verification of the name and address of the beneficiary or sender for whom no VASP is involved in the transfer. This practically means that "ownership proof" is required.
Contact us to learn how we can assist in verifying ownership of a non-hosted wallet. We have developed a customer-friendly and privacy-respecting solution to establish control over a wallet through the Address Ownership Proof Protocol (AOPP).
When must you comply with the Travel Rule in Germany?
October 1, 2021
However, VASPs that, for reasons beyond their control, such as lack of technical capability, are unable to meet all or some of the requirements, must notify BaFin by November 30, 2021, and can apply for a deferral of up to 24 months. They must explain what these reasons are and how they intend to remove the obstacle. In addition, they must specify what further measures they will take to minimize the money laundering risk in virtual asset transfers.
What else do you need to know about the Travel Rule in Germany?
The custody of virtual assets, defined as the holding, management, and protection of virtual assets or private cryptographic keys used for the storage, retention, or transfer of virtual assets for others, requires permission from the financial supervisory authority, BaFin.
What regulations apply to the German Travel Rule?
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