What rule requires intermediaries to pass along information in wire transfers?

Prepare for the Money Laundering Test. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready for your exam!

The travel rule is a requirement in the finance and banking sectors that mandates intermediaries to transmit specific identifying information about the parties involved in a wire transfer. This includes details such as the name, account number, and address of both the sender and recipient. The purpose of this rule is to ensure transparency and help prevent money laundering and other illicit activities by allowing law enforcement agencies and financial institutions to trace the flow of funds.

The travel rule plays a critical role in combating financial crimes, as it creates a paper trail that can be followed, thereby enhancing the ability to track and investigate suspicious transactions. This is particularly important in an era where money laundering tactics can be sophisticated and difficult to detect without proper oversight and record-keeping.

In contrast, the other choices do not pertain to the requirement for intermediaries to pass along information in wire transfers. The intermediary rule and the crossing rule are not established terms related to wire transfers in this context, while Rule 110 does not refer to the specific regulations surrounding wire transfer protocols. Thus, the travel rule stands out as the correct answer.

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