Ripple Custody provides integrated compliance capabilities for transaction screening and Travel Rule compliance.
- Transaction screening analyzes counterparty wallet risk using Chainalysis or Elliptic.
- Travel Rule compliance automates VASP-to-VASP customer information exchange via Notabene.
- Both checks run in parallel. The strictest outcome determines the transaction decision.
- Flagged transactions queue for manual review by compliance officers.
Regulatory compliance is mandatory for licensed digital asset custodians. Transaction screening helps you avoid processing funds from sanctioned or illicit sources. Travel Rule compliance (FATF Recommendation 16) is required in most jurisdictions for transactions above certain thresholds. Failing to implement these controls exposes your organization to regulatory penalties and reputational damage.
For architects and operators: Compliance integrations require third-party accounts (Chainalysis/Elliptic for screening, Notabene for Travel Rule). Plan for these vendor relationships during deployment. Configure risk thresholds based on your organization's risk appetite and regulatory requirements.
Before reading this page, you should understand:
- Transactions - How transactions flow through Ripple Custody
- Governance model - How policies control operations
Ripple Custody provides integrated compliance capabilities to help you meet regulatory requirements for digital asset transactions. The compliance framework includes two complementary services that work together:
- Transaction screening — Risk-based screening of transactions using third-party providers (Chainalysis or Elliptic)
- Travel Rule compliance — Automated exchange of customer information between VASPs (Virtual Asset Service Providers) using the third-party Notabene compliance provider.
When you create a transaction, Ripple Custody runs compliance checks before execution:
Both checks run in parallel. The strictest outcome determines the final decision:
| Combined Result | Decision |
|---|---|
| Both pass | AUTO_APPROVED — Transaction executes |
| Either flagged | FLAGGED — Manual review required |
| Either rejected | AUTO_REJECTED — Transaction blocked |
Transaction screening analyzes the risk of transactions based on counterparty wallet addresses. Ripple Custody integrates with two screening providers:
- Elliptic — Uses decimal risk scores (0-10) to classify transactions
- Chainalysis — Uses categorical risk levels (low, medium, high, severe)
You configure risk thresholds to automatically approve low-risk transactions, reject high-risk transactions, and flag medium-risk transactions for manual review.
For more details, see Transaction screening.
The Travel Rule (FATF Recommendation 16) requires Virtual Asset Service Providers (VASPs) to exchange customer information for transactions above certain thresholds. Ripple Custody integrates with the Notabene compliance provider to automate this exchange.
For more details, see Travel Rule.
| Task | Guide |
|---|---|
| Configure risk scores | Customize risk score configuration |
| Set up Travel Rule | Travel Rule setup |
| Create compliance policies | Automatic release of quarantined transfers |
| Topic | Description |
|---|---|
| Transaction screening | Configure risk thresholds with Chainalysis or Elliptic |
| Travel Rule | Set up VASP-to-VASP information exchange with Notabene |
| Policies | Create governance policies for compliance workflows |