Reported by FATF

(Excerpt shown below. To read full report, go to: https://www.fatf-gafi.org/en/publications/Fatfrecommendations/update-Recommendation-16-payment-transparency-june-2025.html)

FATF updates Standards on Recommendation 16 on Payment Transparency

The Financial Action Task Force (FATF) has today streamlined international requirements that will increase the safety and security of cross-border payments to better detect financial crime. 

The changes to Recommendation 16 of the FATF standard, also referred to as the ‘Travel Rule’ in the context of virtual assets, were agreed by members at the FATF’s June 2025 Plenary meeting. 

The changes to the Standards include:

• Clarifying responsibilities within the payment chain 
  By clarifying who is responsible in the payment chain for including information in payment messages and ensuring it remains unchanged, the changes will improve accuracy and ensure investigators know where to go to find information, supporting secure payments. Under the new Standard, the payment chain is considered to start with the financial institution which receives an instruction from the customer.
• Standardised information requirements 
  The FATF is applying standardised requirements on what information should accompany the payment messages for peer-to-peer cross-border payments above USD/EUR 1,000 (name, address, date of birth). This will simplify requirements for the private sector, and  make payments more efficient. It will also bring more clarity to who is sending and receiving money, making it easier to detect suspicious transactions.
• Requirements to introduce tools that protect against fraud and error 
  The new Standards will require financial institutions to make use of new technologies that protect against fraud and error, such as verification of recipients’ banking information, so that customers can have peace of mind that their money is going to the right place. Such technologies are already in place in parts of the world. 
• Clarification on card transactions
  Transactions carried out using a credit, debit, or prepaid card for the purchase of goods or services continue to be exempt from full R.16 requirements, but clarifications have been made to define the scope of “purchase of goods and services”