If you're responsible for Travel Rule compliance at a VASP, you've probably realised that building everything in-house isn't practical. The complexity of counterparty identification, multi-protocol support, and constantly evolving regulations makes specialised solutions the sensible choice for most organisations.
But with multiple vendors in the market, how do you choose the right one? This guide walks you through the key factors to consider when evaluating Travel Rule solutions.
What to Look For
1. Counterparty Network Coverage
The most important factor in any Travel Rule solution is how many counterparties it can connect you with. A platform with limited coverage means more transactions fall into manual processing or fail compliance checks entirely.
Questions to Ask:
- How many VASPs are in your network?
- Which messaging protocols do you support?
- What's your counterparty identification success rate?
- How do you handle VASPs not in your network?
What Good Looks Like:
Look for solutions that support multiple protocols (TRISA, OpenVASP, TRP, and others) and have partnerships or integrations with other networks. The broader the coverage, the higher your compliance success rate.
2. Integration Simplicity
A Travel Rule solution should fit into your existing infrastructure without requiring a complete system overhaul.
Summary: How to Choose a Travel Rule Solution
This guide explains how VASPs should evaluate third‑party Travel Rule solutions instead of building everything in‑house. It focuses on practical criteria, questions to ask vendors, and what “good” looks like in each area.
Core Evaluation Criteria
1. Counterparty Network Coverage
Why it matters: Determines how many transactions can be handled automatically and compliantly.
Ask vendors:
- How many VASPs are in your network?
- Which messaging protocols do you support (e.g., TRISA, OpenVASP, TRP)?
- What’s your counterparty identification success rate?
- How do you handle VASPs outside your network?
What good looks like:
- Multi‑protocol support (TRISA, OpenVASP, TRP, others)
- Partnerships/integrations with other networks
- High success rate in identifying counterparties
- Clear fallback process for non‑network VASPs
2. Integration Simplicity
Why it matters: Reduces time‑to‑value and avoids major system overhauls.
Ask vendors:
- What integration options do you offer (API, webhooks, hosted UI)?
- Typical integration timeline?
- Do you provide documentation and sandbox environments?
- What technical support is available during integration?
What good looks like:
- RESTful APIs, webhooks, and optional hosted UI
- Clear docs and robust sandbox
- Dedicated implementation support
- Minimal custom development and no disruption to existing workflows
3. Automation Capabilities
Why it matters: Manual workflows don’t scale and increase error risk.
Ask vendors:
- What percentage of transactions can be processed automatically?
- How are edge cases handled?
- Can I define custom rules by transaction type, risk, or jurisdiction?
- What triggers manual review?
What good looks like:
- Majority of transactions processed end‑to‑end automatically
- Configurable rules engine aligned to your risk appetite
- Clear exception routing and review workflows
4. Jurisdictional Coverage
Why it matters: Travel Rule thresholds and requirements differ by country.
Ask vendors:
- Which jurisdictions do you support?