Skip to content

This workflow covers detecting and processing incoming deposits with Travel Rule compliance. Ripple Custody automatically handles most of this process.

For an incoming transfer, the originator's VASP sends the Travel Rule message, including any PII, to your VASP in Notabene. Ripple Custody looks up that message by transaction hash and polls only its status to decide whether to release the quarantined funds.

PII stays in Notabene

Ripple Custody never receives the PII payload from Notabene for incoming transfers. Originator and beneficiary PII remains in your Notabene account, where your compliance team can review it.

Prerequisites

  • Travel Rule setup complete
  • Wallet addresses registered with Notabene (Ripple Custody does this automatically when you connect your Notabene account and when you create new wallets)

Process flow

NotabeneCustodyBlockchainNotabeneCustodyBlockchainalt[Message found][No matching message]alt[Screening failed][Screening passed or not configured]alt[AUTO_APPROVED][AUTO_REJECTED or NEED_EXPLICIT_DECISION]1. Incoming transfer detectedFunds quarantined2. Screen risk (if configured)AUTO_REJECTED (no Travel Rule check)3. Look up Travel Rule message by transaction hashReturn message status (no PII)Poll until status is finalInsufficient counterparty data (manual review)4. Compliance decision5. Release fundsNotify settlementFunds remain quarantined
NotabeneCustodyBlockchainNotabeneCustodyBlockchainalt[Message found][No matching message]alt[Screening failed][Screening passed or not configured]alt[AUTO_APPROVED][AUTO_REJECTED or NEED_EXPLICIT_DECISION]1. Incoming transfer detectedFunds quarantined2. Screen risk (if configured)AUTO_REJECTED (no Travel Rule check)3. Look up Travel Rule message by transaction hashReturn message status (no PII)Poll until status is finalInsufficient counterparty data (manual review)4. Compliance decision5. Release fundsNotify settlementFunds remain quarantined

Step 1: Transaction detection and quarantine

When an incoming transaction is detected on the blockchain, Ripple Custody automatically:

  1. Detects the incoming transfer.
  2. Quarantines the funds pending compliance checks.

No action required — this is automatic.

Step 2: Risk screening

If transaction screening is configured (Chainalysis or Elliptic), Ripple Custody screens the transaction first.

  • If screening fails (high risk score): The transaction is immediately rejected. No Travel Rule check occurs.
  • If screening passes: The workflow proceeds to the Travel Rule check.

Step 3: Travel Rule check

Ripple Custody searches your Notabene account for an incoming Travel Rule message that matches the transaction hash:

  • If a matching message exists: Ripple Custody polls Notabene for the message status until it reaches a final state (for example, AUTHORIZED, SETTLED, REJECTED, or FLAGGED). It retrieves only the status. The PII payload stays in Notabene.
  • If no matching message exists: There isn't enough counterparty data to complete the check. The transfer enters NEED_EXPLICIT_DECISION and requires manual review (see Handle "no data" scenarios).

If the message doesn't reach a final status within the polling window (approximately 5 minutes by default), Ripple Custody also routes the transfer to manual review.

Step 4: Compliance decision

Ripple Custody evaluates the results:

Screening ResultTravel Rule ResultDecision
ApprovedApprovedAUTO_APPROVED
Rejected—AUTO_REJECTED (Travel Rule skipped)
ApprovedRejectedAUTO_REJECTED
InconclusiveInconclusiveNEED_EXPLICIT_DECISION

If only one check is configured (screening only or Travel Rule only), the decision is based on that single check.

Step 5: Fund release or rejection

If AUTO_APPROVED:

  1. Funds are released from quarantine.
  2. After on-chain settlement, Notabene is notified.

If AUTO_REJECTED:

  1. Funds remain quarantined.
  2. Notabene is notified of rejection.

If NEED_EXPLICIT_DECISION: Funds remain quarantined. Manual review is required in Ripple Custody (see below).

Handle "no data" scenarios

When an incoming transfer arrives but the originating VASP has not provided Travel Rule data, the transfer may enter NEED_EXPLICIT_DECISION status, requiring manual handling.

Manual approval or rejection

After manual review in Ripple Custody, the compliance team can approve or reject the transfer:

  • Approved: Funds are released and Notabene is notified after on-chain settlement.
  • Rejected: Funds remain quarantined and Notabene is notified of rejection.

Next steps