October 4, 2021

Seven firms complete cross-jurisdiction testing of Travel Rule with Notabene under the observance of ADGM’s FSRA

NEW YORK -- Notabene, the leading FATF Travel Rule solution provider, has announced the successful completion of a Travel Rule testnet in cooperation with the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). 

Notabene set up a collaborative environment for seven companies to test cross-jurisdictional Travel Rule transactions in a low-risk environment as they gear up to comply with impending regulations. Four ADGM-licensed firms, Matrix, Aarna Capital, DEX, and MidChains, tested sending transactions with companies applying for their Singaporean digital payment token (DPT) license–Amber Group, Liquid, and Zipmex.

New anti-money laundering (AML) rules, commonly known as the “Travel Rule,” require crypto companies to share personal customer information alongside a transaction. As enforcement deadlines approach, financial institutions rush to implement new compliance tools, train compliance teams to implement new processes and understand what actions to take across various scenarios. 

ADGM’s FSRA cooperated with Notabene to establish the testnet so that companies could perform simulated travel rule transactions between each other, collaborate on compliance approaches, while permitting the regulator to clarify their interpretation of the rules. 

The participating firms tested six real-life scenarios, including interactions with firms operating cross-jurisdiction where thresholds and requirements vary. 

Other scenarios tested included:

  • Rejecting transfers when data didn’t match internal records.
  • Interacting with companies who are not Notabene customers and may not be live with Travel Rule.
  • Requesting missing travel rule transfers from counterparties. 

Alice Nawfal, COO of Notabene, says, “The industry is signaling to regulators that they can adapt to the intricacies of new regulations, including varying cross-jurisdictional rules. Notabene’s software ensures that firms complying with the various regulations do not have to limit transaction flow.”

“We are pleased to see that the industry is actively collaborating to use technology to facilitate compliance,” says Wai Lum Kwok, Senior Executive Director – Authorisation of the FSRA.Such collaborations let participants better understand regulatory requirements and improve their processes. Further, appropriate use of technology can lead to more efficient and effective compliance outcomes. The cross-border nature of this collaboration is a good signal that the industry is increasingly able to deal with the global nature of compliance for virtual assets.”  

Participating exchanges expressed excitement to trial Travel Rule transactions through Notabene with regulator participation.

Pav Gill, Chief Legal Officer at Zipmex comments:

“It has been a pleasure to be granted the opportunity to work with ADGM. Throughout this experience, we have seen the positives of how these solutions will help in the fight against financial crimes within the digital assets industry. While there is an appreciation of the intentions behind the regulation, significant practical challenges remain in terms of implementation in order to ensure a seamless customer experience that matches the power of the underlying technology. We look forward to continuing to work with regulators during these exciting times.”

Vasja Zupan, President of Matrix, adds:

“We are thrilled to take part in a global effort to test Travel Rule transactions,” says Vasja Zupan, President of Matrix. “As a regulated trading platform that prioritizes security, we see Notabene’s testnet as a responsible and resourceful step for testing customer transactions.”

Seth Melamed, COO, Liquid, comments:

"At Liquid, putting clients at the center of all that we do is core to how we operate. Adherence to AML regulations is an important part of our client-centric approach. In our collaboration with Notabene, Liquid is proactively working with other crypto entities, regulators, and solution providers to adapt the principles of Funds Travel Rule to a blockchain context."

This testnet presents an excellent opportunity for the participating firms to learn collaboratively. Going forward, Notabene will continue to facilitate further testing, provide integration support, and moderate compliance team discussions, as well as publishing ‘blueprint’ compliance flows to the industry. Sign up for the next testnet here.

About Notabene

Notabene is a reg-tech compliance SaaS solution that connects the traditional financial industry and crypto industry. We are working to make crypto transactions a part of the everyday economy by providing software, tools, and comprehensive data to manage regulatory and counterparty risks in crypto transactions. Using privacy-preserving technology, strategic partnerships, and commitment, our first-to-market FATF Travel Rule solution helps financial institutions, crypto exchanges, and businesses turn compliance into a competitive advantage. Key investors include Castle Island, Green Visor Capital, Illuminate Financial, CMT Digital, and a cadre of top-tier angel investors. Trusted by leading exchanges, Luno, Bitso, Crypto.com, and more.

Notabene is headquartered in New York with offices in Zug and Santiago de Chile. To learn more, visit www.notabene.id. Follow us on LinkedIn and Twitter.

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