Use of External KYC Vendors

Use of External KYC Vendors

Synctera is connected with specific KYC vendors to conduct identity verification, watchlist monitoring, and OFAC screening. However, using external KYC vendors might be necessary for several reasons, such as utilizing data sources that better fit your target customer, having a better understanding of the vendor, or having existing contractual arrangements or integrations.

Generally, the use of an external KYC vendor requires the following:

• Approval from your Sponsor Bank

• Completed third-party vendor risk assessment, subject to bank approval, with ongoing assessments after launch

• Sending KYC verification data to the Synctera Console via API

  • List of verifications performed by the KYC vendor for each customer account opening or for ongoing monitoring - this includes fraud checks, document screening, or selfie checks

  • Detailed results of the verifications completed including pass / fail / risk scoring

  • Notes or evidence of additional manual reviews performed for verifications that have failed

  • Documentation collected during onboarding including passport, driver's license or business formation documents such as incorporation docs - these should be sent via the Documents API

• Ability to complete KYC reviews with qualified staff or compliance operations - see requirements to opt-out of Ground Control

  • Clear procedures for how the staff will conduct and document manual KYC reviews that have failed automated checks

  • Types of ID that are accepted and examples of permissible IDs such as government IDs

• List of the settings and configurations of the KYC provider - shared with Synctera Compliance Operations team and the Sponsor Bank

Verification Process

To create a customer and send your vendor's identity verification results, you must first call the Verification API and provide the data outlined here.

Encoded Data

Send the encoded verification information from the KYC vendor to Synctera using the vendor_info object in the Verification API. The data should be in JSON or TEXT/XML format and must include the vendor's encoded response object, along with the vendor name.

{
    "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"
        }

            "referenceId": "cd36685a-8407-4645-b138-d7ff07dbf45e"
        },
        "vendor": "SOCURE"
    },
    "verification_type": "IDENTITY"
}

Verification Details

Send a list of completed verification results from your KYC vendor. These details should be grouped into verification types and sent to Synctera via the details array of objects within the category object in the Verification API. This will ensure that the data is properly displayed on our system, is aligned with the procedure, and that CIP reports are available within our console for the Sponsor Bank.

KYC

KYB

Documents

Upload all customer verification documents to the Synctera Console using the Document Storage API. Reference the resource ID to link each document to the customer. Ensure that all documents containing Personally Identifiable Information (PII) are encrypted by setting the object as 'Required' in the encryption string of the Document Storage API.