For sending between custodians (VASP) there's a separate process. How exactly they know which destination or origin address is which other VASP is a can of worm I don't even want to look inside of.

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Interesting. I wonder if they share XPubs and then maybe even settle off chain? (Though probably not, now that SEN is gone.)

I suspect they all register their addresses with a third party, so they can do lookups that way.