# Article 17 — Transfers of crypto-assets with missing or incomplete information

**Source:** [Regulation (EU) 2023/1113 — EUR-Lex](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1113)

1. The crypto-asset service provider of the beneficiary shall implement effective risk-based procedures, including procedures based on the risk-sensitive basis referred to in Article 13 of Directive (EU) 2015/849, for determining whether to execute, reject, return or suspend a transfer of crypto-assets lacking the required complete information on the originator and the beneficiary and for taking the appropriate follow-up action.

Where the crypto-asset service provider of the beneficiary becomes aware that the information referred to in Article 14(1) or (2), or in Article 15, is missing or incomplete, that crypto-asset service provider shall, on a risk-sensitive basis and without undue delay:

```
1. reject the transfer or return the transferred crypto-assets to the originator's crypto-asset account; or
1. request the required information on the originator and the beneficiary before making the crypto-assets available to the beneficiary.
```

1. Where a crypto-asset service provider repeatedly fails to provide the required information on the originator or the beneficiary, the crypto-asset service provider of the beneficiary shall:
   1. take steps, which may initially include the issuing of warnings and setting of deadlines, before proceeding to a rejection, restriction or termination in accordance with point (b) if the required information is still not provided; or
   2. directly reject any future transfers of crypto-assets to or from, or restrict or terminate its business relationship with, that crypto-asset service provider.

The crypto-asset service provider of the beneficiary shall report that failure, and the steps taken, to the competent authority responsible for monitoring compliance with anti-money laundering and counter-terrorist financing provisions.

## What this means in practice

Article 17 is the **decision matrix** for the beneficiary CASP when the Travel Rule data has not arrived intact. Four options under para 1: execute, reject, return, or suspend. The choice is **risk-sensitive** — there is no automatic mandate to reject in every case.

The key practical addition over the funds analogue ([Art. 8](/tofr/transfer-of-funds-regulation/chapter-ii-psp-obligations/article-8-transfers-with-missing-or-incomplete-information.md)) is the **return option** — sending the crypto-assets back to the originator's account. This is a uniquely crypto-side mechanism because, unlike fiat wire transfers, on-chain transfers are typically irrevocable from the originator's side; a return requires an active reverse transfer by the beneficiary CASP.

Para 2 sets up a counterparty-management duty against repeat-offending CASPs — escalating warnings, then rejection/restriction/termination, with notification to the AML supervisor. This is what is colloquially called the "**de-risking CASP counterparties**" duty.

## Compliance checklist

* [ ] Maintain a **documented risk-based procedure** specifying when to execute, reject, return or suspend an inbound transfer with missing/incomplete Travel Rule data — risk factors should include the originator CASP's jurisdiction, licensing status, prior performance, transfer size and counterparty risk profile.
* [ ] **Act without undue delay** once the gap is identified — do not let positions sit indefinitely.
* [ ] Track repeat failures by counterparty CASP. Escalate via warnings → deadlines → rejection/restriction/termination.
* [ ] Report repeat failures and the action taken to the **competent authority responsible for monitoring AML/CFT compliance**.
* [ ] Where a transfer is returned, ensure the return itself complies with [Art. 14](/tofr/transfer-of-funds-regulation/chapter-iii-casp-obligations/article-14-information-accompanying-transfers-of-crypto-assets.md) (the beneficiary CASP becomes the originator of the return).


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