On-premises Software
On-premises (on-prem) refers to software installed and run on an organisation’s servers rather than being hosted by a third-party provider.
With an on-prem solution, your company is responsible for maintaining and managing the hardware, software, security, and data. This setup offers complete control and ownership over the system, which is why it’s often chosen by businesses handling sensitive information or those needing strict compliance with data protection regulations.
The Benefits of an On-premises Travel Rule Solution
On-prem solutions, like 21 Travel Rule, offer enhanced data security and privacy by keeping sensitive customer data on your own servers rather than third-party storage, like a SaaS Travel Rule provider. This significantly reduces the risk of data breaches and aligns with regulations like the GDPR and DORA.
By hosting data locally, VASPs maintain complete control over security measures, data retention policies, and compliance processes, ensuring jurisdiction-specific requirements are met and eliminating the risks associated with cross-border data transfers.
On-prem solutions also simplify compliance and audit readiness. In fact with 21 Travel Rule, VASPs can easily access and download transaction data and internal actions, providing a clear audit trail and ensuring transparency.
Moreover, the reduced reliance on SaaS providers lessens the legal team’s workload, eliminating the need for complex data-sharing agreements, as recommended by DORA.
Additionally, on-prem storage supports more efficient record-keeping and data retrieval, making it easier to meet extensive regulatory requirements without extra due diligence or third-party involvement.