Declined Reasons
When a Travel Rule transaction is declined by the receiving VASP, the status is set to DECLINED and a status_reasoning field is populated explaining the reason. Below are the standard reasons for declining transactions.
Transaction Decline Scenarios
The receiving VASP may decline a Travel Rule transaction for any of the following reasons:
| Reason Category | Example Reasoning |
|---|---|
| AML Screening Failure | Beneficiary failed AML screening - sanctioned entity |
| Incomplete Information | Missing required originator information for compliance review |
| Invalid Identification | National identification provided does not match records |
| Sanctions Match | Originator or beneficiary matches sanctioned entity list |
| Risk Threshold Exceeded | Transaction exceeds acceptable risk threshold for counterparty |
| Regulatory Non-Compliance | Transaction does not meet local regulatory requirements |
| Unverified VASP | Originating VASP could not be verified in the network |
| Data Inconsistency | Discrepancy between blockchain data and Travel Rule information |
These are example decline reasons. The actual status_reasoning text is provided by the declining VASP and may vary. Always review the status_reasoning field for the specific reason.
Handling Declined Transactions
When a transaction is declined:
- The transaction status changes to
DECLINED. - The
status_reasoningfield contains the specific reason provided by the counterparty VASP. - The transaction cannot be further updated once declined.
- Review the decline reason and take appropriate action (correct data, contact counterparty, etc.).
Decline via API
When declining an INCOMING transaction through the Update Transaction endpoint, you must provide a status_reasoning:
{
"transaction_id": "TRANSACTION_ID",
"status": "DECLINED",
"status_reasoning": "Clear, specific reasoning for the decline"
}
Provide clear, specific reasoning that identifies the compliance concern and references relevant policy or regulation. Maintain professional language.