diff --git a/Cargo.lock b/Cargo.lock
index 5d9fb4585e..b84c1daa9b 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2850,6 +2850,25 @@ dependencies = [
  "sp-std 14.0.0 (git+https://github.com/paritytech/polkadot-sdk?branch=release-polkadot-v1.7.2)",
 ]
 
+[[package]]
+name = "pallet-transfer-allowlist"
+version = "0.1.0"
+dependencies = [
+ "cfg-traits",
+ "cfg-types",
+ "frame-benchmarking",
+ "frame-support",
+ "frame-system",
+ "pallet-balances",
+ "parity-scale-codec",
+ "scale-info",
+ "serde",
+ "sp-core",
+ "sp-io",
+ "sp-runtime",
+ "sp-std 14.0.0 (git+https://github.com/paritytech/polkadot-sdk?branch=release-polkadot-v1.7.2)",
+]
+
 [[package]]
 name = "pallet-treasury"
 version = "27.0.0"
diff --git a/Cargo.toml b/Cargo.toml
index 748522273a..cc114a54d5 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -39,7 +39,7 @@ members = [
   "pallets/rewards",
   "pallets/swaps",
   "pallets/token-mux",
-  #"pallets/transfer-allowlist",
+  "pallets/transfer-allowlist",
   #"runtime/altair",
   #"runtime/centrifuge",
   #"runtime/development",
diff --git a/pallets/transfer-allowlist/src/lib.rs b/pallets/transfer-allowlist/src/lib.rs
index 32127d411c..230f8f9aa2 100644
--- a/pallets/transfer-allowlist/src/lib.rs
+++ b/pallets/transfer-allowlist/src/lib.rs
@@ -81,9 +81,14 @@ pub mod pallet {
 
 	#[pallet::pallet]
 	#[pallet::storage_version(STORAGE_VERSION)]
-
 	pub struct Pallet<T>(_);
 
+	/// A reason for this pallet placing a hold on funds.
+	#[pallet::composite_enum]
+	pub enum HoldReason {
+		TransferAllowance,
+	}
+
 	#[pallet::config]
 	pub trait Config: frame_system::Config {
 		type RuntimeEvent: From<Event<Self>> + IsType<<Self as frame_system::Config>::RuntimeEvent>;
@@ -92,10 +97,13 @@ pub mod pallet {
 
 		/// Currency for holding/unholding with allowlist adding/removal,
 		/// given that the allowlist will be in storage
-		type ReserveCurrency: fungible::hold::Mutate<Self::AccountId>;
+		type ReserveCurrency: fungible::hold::Mutate<
+			Self::AccountId,
+			Reason = Self::RuntimeHoldReason,
+		>;
 
 		/// The identifier to be used for holding.
-		type HoldId: Get<ReasonOf<Self>>;
+		type RuntimeHoldReason: From<HoldReason>;
 
 		/// Deposit amount
 		type Deposit: Get<DepositBalanceOf<Self>>;
@@ -348,7 +356,11 @@ pub mod pallet {
 				&receiver,
 			)) {
 				Self::increment_or_create_allowance_count(&account_id, &currency_id)?;
-				T::ReserveCurrency::hold(&T::HoldId::get(), &account_id, T::Deposit::get())?;
+				T::ReserveCurrency::hold(
+					&HoldReason::TransferAllowance.into(),
+					&account_id,
+					T::Deposit::get(),
+				)?;
 			};
 			<AccountCurrencyTransferAllowance<T>>::insert(
 				(&account_id, &currency_id, &receiver),
@@ -428,7 +440,7 @@ pub mod pallet {
 			{
 				Some(AllowanceDetails { blocked_at, .. }) if blocked_at < current_block => {
 					T::ReserveCurrency::release(
-						&T::HoldId::get(),
+						&HoldReason::TransferAllowance.into(),
 						&account_id,
 						T::Deposit::get(),
 						Precision::BestEffort,
diff --git a/pallets/transfer-allowlist/src/mock.rs b/pallets/transfer-allowlist/src/mock.rs
index fb372559e7..cca1676076 100644
--- a/pallets/transfer-allowlist/src/mock.rs
+++ b/pallets/transfer-allowlist/src/mock.rs
@@ -11,11 +11,7 @@
 // GNU General Public License for more details.
 
 use cfg_types::tokens::FilterCurrency;
-use frame_support::{
-	derive_impl, parameter_types,
-	traits::{ConstU32, ConstU64},
-	Deserialize, Serialize,
-};
+use frame_support::{derive_impl, traits::ConstU64, Deserialize, Serialize};
 use frame_system::pallet_prelude::BlockNumberFor;
 use parity_scale_codec::{Decode, Encode, MaxEncodedLen};
 use scale_info::TypeInfo;
@@ -71,20 +67,12 @@ impl From<u64> for Location {
 #[derive_impl(pallet_balances::config_preludes::TestDefaultConfig as pallet_balances::DefaultConfig)]
 impl pallet_balances::Config for Runtime {
 	type AccountStore = System;
-	type DustRemoval = ();
-	type ExistentialDeposit = ConstU64<1>;
-	type MaxHolds = ConstU32<1>;
-	type RuntimeHoldReason = ();
-}
-
-parameter_types! {
-	pub const HoldId: () = ();
 }
 
 impl transfer_allowlist::Config for Runtime {
 	type CurrencyId = FilterCurrency;
 	type Deposit = ConstU64<10>;
-	type HoldId = HoldId;
+	type RuntimeHoldReason = RuntimeHoldReason;
 	type Location = Location;
 	type ReserveCurrency = Balances;
 	type RuntimeEvent = RuntimeEvent;