KYC API Explained: Who Handles KYC and How It Works

The question in full

Understand KYC, who is responsible for it, and how APIs are used by sponsoring institutions for compliance and data access.

Answer

KYC is the responsibility of the Principal License Holder, and an API will be provided to you by the sponsoring institution as it is their responsibility to do KYC directly. As and when you get your licenses, you should have an agreement in place with the sponsoring institution beforehand, that allows you to do the following:

– Be able to have access to client/customer information for the states in which you get licenses, as and when you get them. Only non-confidential data will be provided (i.e. address, DOB, and SSN are NOT provided for).
– Be able to get the historic transaction logs.
– Be able to get the ledger balances.
– Be able to get any other information that both providers can mutually agree on, for the purpose of a smooth transition, without breaking any state &/or federal privacy laws.

What is a KYC and is there an API for it? Is it for the beneficiary?

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