Question
How Can I Determine The CIP KYC Requirements For A User?
Answer
KYC, or Know Your Customer, is a process that financial institutions use to verify the identity of their customers. Numerous CIP KYC requirements must be met before we can verify a user. Please follow the following methodology to figure out what your platform's CIP tag needs to be able to verify a user.
CIP tags help distinguish different types of users and the specific KYC requirements needed for their transactions.
For instance, you could have a CIP tag 1 for Personal and Business users who only transact within the country.
You could also have a CIP tag 2 for Personal and Business users who engage in international transactions.
Identifying the CIP tag assigned to a user is crucial to determine the corresponding KYC requirements for that tag.
KYC requirements may differ depending on whether the account is personal, joint, or business.
Check the tabs below to determine the differences between each type of account.
Personal accounts have a single document requirement.
A document contains all the KYC information associated with the user profile.
Example KYC For Personal Accounts:
Document 1:
Name: Tony Stark
Date: May 29, 1970
Address: 10880 Malibu Point, Dume, Malibu, CA, US, 90265
GOVT_ID
GOVT_ID_BACK
SSN: 222-22-2222
Business accounts have a minimum of 2 document requirements.
For business accounts, two types of documents are required for KYC verification. One document contains all the KYC information associated with the ultimate beneficial owner(s) (UBOs) of the business, which are listed as 'Personal' document types. The other document contains all the KYC information associated with the business entity, which is listed as a 'Business' document type. Sole proprietorships have only one document requirement, listed as a 'Personal' document type.
Document 1 (UBO or Sole-Prop):
Name: Tony Stark
Date: May 29, 1970
Address: 10880 Malibu Point, Dume, Malibu, CA, US, 90265
GOVT_ID
GOVT_ID_BACK
SSN: 222-22-2222
Document 2 (Business Entity):
Name: Stark Industries
Date: April 1, 1962
Address: 200 Industrial Ave, Long Beach, CA, US 90803
EIN_DOC
REG_GG
DBA_DOC
TIN: 44-4444444
Joint accounts can have a minimum of 2 document requirements.
For joint accounts, two types of documents are required for KYC verification. One document contains all the KYC information associated with one of the account holders, listed as a 'Personal' document type. The other document contains all the KYC information associated with the other account holder, also listed as a 'Personal' document type.
Document 1:
Name: Tony Stark
Date: May 29, 1970
Address: 10880 Malibu Point, Dume, Malibu, CA, US, 90265
GOVT_ID
GOVT_ID_BACK
SSN: 222-22-2222
Document 2:
Name: Pepper Potts
Date: April 10, 1972
Address: 10880 Malibu Point, Dume, Malibu, CA, US, 90265
GOVT_ID
GOVT_ID_BACK
SSN: 333-33-3333
Synapse has different types of KYC it uses to verify its users. Physical, Social, and Virtual documents. Each document type has differences that can impact how the user becomes verified.
Check the tabs below to determine the differences between each type of KYC.
Physical Documents
Refer To KYC Documents That Physically Exist And Must Be Photographed or Recorded To Be Submitted. Most CIP Tags require multiple Documents To Verify A User. Ensure All Documents Are Submitted.
Government ID Front (GOVT_ID)
Government ID Back (GOVT_ID_BACK)
The user would need to submit photos of their Government ID, both front & back, to meet these requirements.
Social documents
Social KYC allows users to extend trust similarly by building a digital identity using their social accounts.
Date of Birth (DATE): May 29, 1970
Home/Business Address (ADDRESS): 10880 Malibu Point, Dume, Malibu, CA, US, 90265
Twitter Handle (TWITTER): twitter.com/RealTonyStark
LinkedIn Profile (LINKEDIN): linkedin.com/in/robert-downey-jr-ab6703215/
All of this information can be verified via social accounts and is considered Social Documents.
Virtual Documents
Virtual KYC is a method of conducting KYC using digital channels.
Social Security Number (SSN): 222-22-2222
Tax Identification Number (TIN): 22-2222222
Driver's License Number (DRIVERS_LICENSE): 2222222
Personal Identification Number (PERSONAL_IDENTIFICATION): 2222222
Check As Needed
If your platform does not use ID Score or Trust Level, you can skip this section!
ID Score is a probabilistic score (0-1) assigned to all users at the time of onboarding that predicts the likelihood that the identity supplied belongs to the person who is creating the account. 1 means we are 100% certain that the user is who they say they are. 0% means with 100% certainty; we can say that the user is not who they say they are.
For each user, the ID Score assigns a trust level (low, med, or high) and an id score (0-1) after evaluating the authenticity of user input details.
Low Trust Level KYC Requirements Example:
SSN + Govt ID + Video Auth + Manual Review
Med Trust Level KYC Requirements Example:
SSN + Govt ID
High Trust Level KYC Requirements Example:
SSN
Note: A low score does not necessarily mean a user is providing false information or committing fraud; it means that we do not have enough positive signals to assure their identity.:
When determining the KYC requirements for a user, it is important to know that different trust levels can cause different KYC requirements for a user in a given CIP tag.
Check As Needed
If your platform does not have tiers within each CIP tag, you can skip this section!
Example:
CIP 1, Business (Sole-Prop), Tier 1 - $1,000 limit
KYC Requirements:
GOVT_ID
GOVT_ID_BACK
DATE
ADDRESS
CIP 1, Business (Sole-Prop), Tier 2 - $10,000 limit
KYC Requirements:
GOVT_ID
GOVT_ID_BACK
DATE
ADDRESS
SSN
If the user reached out asking why they don't have the 10K limit and have not submitted the additional KYC required for CIP 1 Tier 2 (SSN), then we would know that is why they are hitting a 1K daily limit for CIP 1 Tier 1.
You will notice that it contains everything we reviewed in this guide! Please check out this additional article if you need help reading a spec sheet!
For sandbox or for production.
Select 'View JSON' and copy the value for rules.v3.
This JSON object defines the rules for all of your spec sheet!
Incomplete and ID Score/Trust Level Considerations
This feature only works for Personal (Single Document Requirement) Accounts, as it will only show you one option. However, we are improving this view to show all the available data!
Additionally, the options here do not account for Trust Level/ID Score. Even if you select an option, the Trust level/ID score will be used instead if enabled for the user.
ID Score/Trust Level Consideration
The options here do not account for Trust Level/ID Score.
Even if you select an option, the Trust level/ID score will be used instead if enabled for the user.
1. Pull up the user. Sign In as them.
2. On the Documents Tab, you will see the options to add or edit base documents.
You can follow the methodology outlined below to determine a user's CIP (Customer Identification Program) and KYC (Know Your Customer) requirements.
Firstly, understand that CIP tags differentiate between different types of users and their specific KYC requirements.
For example, CIP tag 1 may be for personal and business users conducting transactions within the country, while CIP tag 2 may be for personal and business users engaging in international transactions. Identifying the CIP tag assigned to a user is crucial in determining the corresponding KYC requirements.
KYC requirements can also vary based on the type of account—personal, business, or joint. Personal accounts typically require a single document containing all the necessary KYC information. Business accounts usually require at least two documents—one for the ultimate beneficial owner(s) and another for the business entity. On the other hand, joint accounts require two documents associated with each account holder.
It's important to understand the differences between physical, social, and virtual KYC documents. Physical documents are those that physically exist and need to be photographed or recorded, such as government IDs. Social documents utilize information from social accounts, like date of birth, address, and social media profiles. Virtual KYC involves conducting KYC using digital channels, such as verifying a user's social security number or driver's license number.
Additionally, some platforms may use an ID Score or Trust Level system to assess the authenticity of user details. The Trust Level assigned to a user can influence the KYC requirements.
Platforms may also have different tiers within each CIP tag, allowing for higher limits but requiring additional KYC.
To determine your platform's specific requirements, refer to your platform's spec sheet or view the JSON object in the client settings.
Comments
Please sign in to leave a comment.