Introduction to KYC
Know Your Customer entails confirming the authenticity of your clients.
Mandates like the Bank Secrecy Act/Anti-Money Laundering law (BSA/AML) necessitate that financial entities overseeing your assets conduct identity checks to curtail potential fraudulent actions.
Every user in the Kulipa system must successfully complete KyC in order to have a card issued for their account.
The KYC verification resolves vital queries:
- Does the person (symbolized by the user resource) genuinely represent their claims?
- Have there been instances of dubious or deceitful actions associated with the individual or entity?
At Kulipa, we have an innovative approach to KYC, allowing users to undergo a light KYC process, which does not require any document scanning.
This KYC process allows the user to receive a card and start using it immediately, but with limitations on the amount of money they can spend.
The user can then upgrade their KYC to a full KYC process, which requires them to scan their ID and other possible checks. Upon completing that step, Kulipa can upgrade their card in-place to allow them to spend more money.
As a wallet provider, you have the option of choosing to use the light KYC process for any particular user, or jump directly to the full KYC process.
Kulipa will communicate to you lifecycle events such as KYC being approved, declined, or when a light KYC cannot be completed and a full one is required.