Express KYC

Use Cases for Express KYC

This document outlines specific scenarios where a workflow involving delayed watchlist verification with limited user functionality is applicable. This approach balances the need for rapid initial user onboarding with the critical requirement of watchlist screening for regulatory compliance. It is crucial to understand that this approach is contingent on restricting potentially risky user activities until watchlist verification is complete.

Core Principle: Users are granted limited access initially, allowing them to explore the platform and complete preliminary steps, but are prevented from engaging in transactions or other high-risk actions until watchlist verification is successful.

Use Cases:

1. Platforms with Low-Risk Initial Interactions: Suitable for platforms where initial user engagement doesn't involve immediate financial transactions or sensitive data exchange.

2. Businesses with a Multi-Stage Onboarding Process: Applicable when user onboarding involves several steps, and watchlist verification can be integrated seamlessly into the process. Examples include:

3. Situations Where Initial Speed is Paramount: Relevant when a fast initial onboarding experience is crucial for attracting users, but full functionality requires verification. This must be balanced with the risk of allowing unverified users any access.

Key Considerations and Limitations:

• Risk Assessment: A thorough risk assessment is essential to determine which user activities must be restricted. Any action that could facilitate financial crime or violate regulations must be blocked.

• User Experience: Transparency with users is crucial. You may want to explain why their functionality is limited and when they can expect full access.

• Legal and Regulatory Compliance: Ensure that you comply with and fulfill your local regulations and obligations. This documentation is not a substitute for legal advice.

• Ongoing Monitoring: Implement ongoing monitoring to identify any suspicious activity, even from users with limited access.

Disclaimer: This documentation provides general guidance and should not be considered legal advice. It is essential to consult with legal counsel to ensure your specific implementation complies with all applicable laws and regulations. The suitability of this workflow depends heavily on the specific business model, risk profile, and regulatory environment.

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Overview

The KYC Evaluation is performed asynchronously. However, in certain circumstances, a preliminary customer evaluation is enough to determine if the customer onboarding should be continue or not.

The Express KYC is meant for such cases. Include useExpressKYC in the customer onboarding options request, and Waldo's Public API will make the best effort in a short time-frame to provide you a part of the KYC evaluation.

Workflow

• Onboarding request: include the Express KYC option in the customer onboarding

• Onboarding result: the preliminary evaluation is returned synchronously, if it can be obtained quickly

• Complete evaluation result: webhook notifications are sent asynchronously

Preliminary KYC results

When the Express KYC option is included in the customer onboarding process, Waldo's Public API will attempt to obtain the customer identity verification in a decent amount of time. A fully qualified KYC evaluation should include the customer watchlist verification, therefore the final decision on the customer eligibility for the services you provide should be considered - meaning that the information provided in the webhook notifications will have the last word.