I think the KYC rules apply on customeraccount level and the FATF travel rule applies on transaction level.
LOL
Transaction level? The exchange totaly know where they sent coins. They have view key. FATF travel rule is about person informations not about transaction. Just read it. Exchange customer that is KYCed clearly know where to whome he sent his coins and who send them to him and can normal tell that to anyone that is curious about it.
Are you telling me that exchanges have the ability to directly connect senders and receivers to Monero transactions? Senders and receivers that are suppose to be shielded on-chain ? I thought only Monero users can view their own transactions? (if they remember to which address they sent it). Are you telling me if someone hacks an exchange, they can obtain sender and receiver information about Monero transactions ? Thereby completely de-anomyzing Monero transactions ?
I don't think exchanges have that kind of information, they only have KYC information on their customers and are now required to pass additional sender and receiver information from transactions that go through their exchange, which will simply not be possible with certain cryptocurrencies (specially those that shield that information on-chain even from them).
Anyways, FATF is clearly setting up a global monitoring system, where suspicious looking transactions can be flagged and checked for sender and receiver information, without FATF having to go back to exchanges to request that sort of information. Sort of a global operating upstreaming data information system.