Using your own KYC or KYB vendor
    • 21 Feb 2024
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    Using your own KYC or KYB vendor

    • PDF

    Article summary

    Introduction

    Fintechs that have been approved to use their own KYC or KYB vendor are required to submit the outcome of the KYC or KYB process, along with the details of that KYC of KYB verification. This article aims to guide the fintech in that submission.

    Required information to be captured while creating the customer 

    Personal Customer:

    Ensure that the following fields are captured and validated when creating a personal customer

    • First Name

    • Middle Name (if any)

    • Last Name

    • Date of Birth

    • Personal ID 

      • E.g. SSN, ITIN, Passport, Driver License, etc. For the complete list, please see here.

    • Street Address

    • Address 2nd Line

    • City 

    • State

    • Zip

    • Phone

    • Email

    Business Customer:

    Ensure that the following fields are captured and validated when creating a business customer

    • Entity Name

    • EIN

      • If you don’t have EIN, use Unique_Identifier

        • Business number / corporation registration number etc.

    • For Sole Proprietorship, we will run the KYC on the owner

    • Street Address

    • Address 2nd Line

    • City 

    • State

    • Zip

    • Phone

    • Formation Date

    • Legal Structure

    • Incorporation documents including Operating Agreement if available. You can attach documents using Synctera document service API https://dev.synctera.com/reference/createdocument

    Ensure that the following fields are captured and validated for each owner or officer of the business:

    • First Name

    • Middle Name (if any)

    • Last Name

    • Date of Birth

    • SSN

      • If you don’t have SSN, use Unique_identifier

        • ITIN / SIN / Passport number 

    • Street Address

    • Address 2nd Line

    • City 

    • State

    • Zip

    • Phone

    • email

    Define the owner’s relationship to the business

    • Ownership  - This can be set using account relationships 

      • Owner of, Beneficial Owner of, Managing person of

    • % Ownership  - This can be set using account relationships

    • For non-Sole Proprietorship businesses, make sure that at least one of the relationships for the business is a MANAGING_PERSON_OF

    Capture the Beneficial Owner’s certification via a disclosure

    • Disclosure Type - OWNER_CERTIFICATION

    Managing Person and Beneficial Ownership Certification

    Fintechs need to ensure that each business (except for Sole Proprietorships structures) must have a Managing Person defined and the Beneficial Ownership Certification disclosure submitted. This validation will be enforced soon and will be required for a successful submission.

    Verify Customer / Business:

    To record the external KYC/KYB verification, without which the customer/business will not be able to transact, you must call https://dev.synctera.com/reference/createverification. Please make note of the below points while calling this API:

    • Pass the response of the external verification, by mapping the outcomes into our "details" array on our "/verifications/" endpoint. An example of a mapped outcome is as follows:

      JSON

      {
          "details": [
              {
                  "description": "Address can be resolved to the individual",
                  "category": "ADDRESS",
                  "result": "PASS",
                  "vendor_code": "I708",
                  "url": "https://kyc_vendor.com/resultsid123"
              },
              {
                  "description": "SSN/ITIN cannot be resolved to the individual",
                  "category": "CIP",
                  "result": "FAIL",
                  "vendor_code": "R901",
                  "url": "https://kyc_vendor.com/resultsid123"
              }
          ],
          "person_id": "96dc5acb-677f-42b6-bb8f-c368c0409eb5",
          "result": "REJECTED",
          "vendor_info": {
              "content_type": "application/json",
              "json": {
                  "addressRisk": {
                      "reasonCodes": [
                          "I708",
                          "I707",
                          "I705"
                      ],
                      "score": "0.01"
                  },
                  "referenceId": "cd36685a-8407-4645-b138-d7ff07dbf45e"
              },
              "vendor": "SOCURE"
          },
          "verification_type": "IDENTITY"
      }
      

    For the details object, please ensure that you map the appropriate info from your KYC vendor to our labels. This will help to ensure that when the info is displayed on our console, it’s structured to our existing framework, and will help teams that are reviewing the information understand what’s submitted. Here are the available labels:

    KYC Label Names

    Category (Enum)

    Label Name

    Map with

    CIP

    Customer Identification Program (CIP)

    Identify check done against a bureau. Checks include verifying name, ID number and date of birth.

    ADDRESS

    Address

    Address check done either through a bureau or document verification

    PHONE

    Phone

    Phone check, including verifying number and other correlation methods

    EMAIL

    Email

    Email check, including verifying email address and other correlation methods

    FRAUD

    Fraud

    Check for any fraud elements

    SYNTHETIC

    Synthetic

    Check for any synthetic elements

    WATCHLIST

    Watchlist

    Outcome from Watchlist screening

    DEVICE

    Device

    Device check either through SDK or IP screen

    DOC_VERIFICATION

    Document Verification

    Document Verification checks, where ID documents are submitted for verification, including liveness test, or other anti-forgery verification

    SELFIE_CAPTURE

    Selfie Capture

    Selfie capture check, including liveness test, or other anti-fake verification

    SELFIE_DOCUMENT

    Selfie Document

    Check if selfie matches with photo on document

    DOC_DETAILS

    Document Details

    Check if details on ID documents matches with supplied information

    KYB Label Names

    Category (Enum)

    Label Name

    Map with

    BUSINESS_NAME

    Business Name

    Business name check done against a bureau

    OFFICE_ADDRESS

    Office Address

    Address check done either through a bureau or document verification

    SOS_FILINGS

    SOS Filings

    Outcome from a SOS filings check

    WEBSITE

    Website

    Business website check

    TIN_MATCH

    TIN Match

    TIN check from tax bureau

    BANKRUPTCIES

    Bankruptcies

    Check for any bankruptcy filings

    WATCHLIST

    Watchlist

    Outcome from Watchlist screening

    SOS_DOMESTIC

    SOS Domestic Sub‑status

    Outcome from a Domestic SOS filings check

    LICENSE

    License

    License Check, e.g. Marijuana license check

    • Also include all the vendor info field as a json blob. This information will then be visible on Synctera Console. Note that this json has to have the response object of the external KYB/KYC verification result. Please do not include links to external vendor websites or google drives where this information is stored. It has to be the actual verification result response object from your vendor which can be viewed in the Synctera Console as shown below.

    • Set the name of the external vendor is set in the vendor field under vendor_info

    You must also upload all documents used to verify the customer / business externally, using Synctera document storage service and attach it to the customer. To do this, call https://dev.synctera.com/reference/createdocument by passing the customer/business resource ID.

    • Also for any document that contains PII, please mark the document as encryption required, by setting the field ‘encryption’ as ‘Required’. Encrypted documents can be viewed in the Synctera Console only by those who have special permissions. Once you upload these documents, the documents will show up under customer/business detail. 


    Ongoing Monitoring

    All customers/business owners are expected to have a verified KYC, pass an initial watchlist check. From Jan 2024 onward, we will automatically enroll all customers and businesses on Synctera’s ongoing watchlist monitoring.


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