In 2015 the updated Funds Transfer Regulation (FTR) (also known as the Wire Transfer Regulation and the Travel Rule) was published. Following the UK's decision to leave the European Union, the FTR was legislatively onshored. The legislation provides traceability of all parties making payments through the international banking system. Non-compliance may leave your organisation vulnerable to sanctions evasion, money laundering and terrorist financing and you may be reported to the Financial Conduct Authority (FCA).

 

The FTR sets out required payer and payee information to accompany a payment. It is a foundational control over payment information quality and a key AML/CTF measure. All payment service providers (PSPs) within the UK  are subject to FTR as are PSPs sending payments to or from the UK. 

 

In this white paper, we explore the legislation in full, the different roles and activities of the parties involved, and provide recommendations on building effective FTR controls.