Consistency and harmonization are in the interests of all virtual asset service providers (VASPs). Perhaps the most critical and integral part of the Travel Rule compliance puzzle was developing an industry standard to transmit structured data between VASPs and/or other affected entities regardless of the underlying technical solution.
The Joint Working Group on interVASP Messaging Standards created IVMS101, a universal common messaging language that allows Beneficiary VASPs to understand and process required originator and beneficiary information.
This article introduces IVMS101 and explains why it is the industry standard for transmitting structured Travel Rule data.
What is IVMS101?
IVMS101 is a widely-adopted universal message standard for communicating required originator and beneficiary information between VASPs. Interoperable Travel Rule messaging protocols use IVMS 101 as their data transmission type.
IVSM 101 data is structured to be sent and received in a meaningful, well-formed, and complete manner. Standardization eases the technical burden towards adoption, as a VASP has only to develop transformations for such entities once.
How does IVMS101 work?
IVMS101 defines different field types used to specify the required and optional fields that the VASPs share in the context of a Travel Rule transfer. This model/structure considers the FATF requirements and recognizes that many possible scenarios may include different characters encodings and data availability.
Is IVMS101 an open-sourced industry alliance, a closed network, or a commercial solution?
IVMS101 is an open-sourced industry alliance network of technical experts from the Chamber of Digital Commerce, Global Digital Finance, and the International Digital Asset Exchange Association. As a collective, the working group ushered in a new technical standard which created a uniform approach and established common Travel Rule messaging standards now known as interVASP Messaging Standard IVMS101.
Additionally, The FATF and critical regulators such as FinCEN, MAS, the FCA, and the JFSA were kept informed during the development of IVMS101. On May 6th, 2020, IVMS101 was commended for adoption at an InterVASP closing plenary.
Is IVMS101 a Travel Rule solution or messaging standard?
IVMS101 is a messaging standard for formatting customer personally identifiable information (PII) on Travel Rule protocols.
Is IVMS101 interoperable with various protocols and Travel Rule solutions?
Interoperable Travel Rule messaging protocols use IVMS101 as their data transmission type. IVMS101 establishes a universal lexicon directly from the VASP data universe. This reduces the level of ambiguity and decreases the risk of data misinterpretation.
Is IVMS101 live?
IVMS101 is live and in production. Various Travel Rule messaging protocols use IVMS101 as their message standard.
What is the level of industry support for IVMS101?
Every Travel Rule messaging protocol either uses IVMS101 or has announced their plans to support IVMS101 in the future.
interVASP: InterVASP Messaging Standards