Understanding KYC on HIFI

Know Your Customer (KYC) is an essential process that financial institutions use to verify the identity of their clients. This process is a critical component of anti-money laundering (AML) compliance and helps prevent financial crimes such as fraud and terrorism financing.

Why is KYC Important?

KYC procedures are not just regulatory formalities; they are proactive measures to ensure the safety and integrity of financial transactions. By verifying the identity of users, HIFI ensures a trustworthy environment for all its customers. It also limits the potential misuse of the platform for illicit activities.

KYC on HIFI: A Step-by-Step Guide

To unlock a rail on HIFI through our KYC process, follow these steps:

Getting Started: Create a HIFI User

Creating a user object on HIFI is quick and simple with the Create User endpoint. When creating a user, you provide basic user information which gives you access to our on-chain function with provisioned wallets.

KYC Endpoints

• Get KYC Requirements: Get the required and optional KYC fields for a specific rail, along with any invalid KYC fields currently held by the user for unlocking the rail.
• Update KYC: Update the user's KYC information. (This is the only endpoint available for making changes to the user's KYC information)
• Get KYC : Get the KYC information the user currently holds.
• Submit KYC: Submit the user's current KYC data to unlock a specific rail.
• Get KYC Status: Get the user's latest KYC status for a specific rail after KYC submission. If no KYC submission has been made for the rail, it will have an INACTIVE status.

Example Flow to Unlock a Rail:

All rails can be unlocked through our KYC endpoints. For example, if you want to unlock the USD_EURO rails, you can follow these steps after successfully creating a HIFI User:

1. Gather the required KYC information for the USD_EURO rail by either consulting our KYC Rails Requirements doc or using the Get KYC Requirements endpoint.
2. Update the user's KYC information using the Update KYC endpoint.
3. Submit the user's KYC information to unlock the rail through the Submit KYC endpoint.
4. Check the user's KYC status for the USD_EURO rail using the Get KYC Status endpoint.
   1. If the submission passes, the rail's KYC status will be ACTIVE. No further action is needed, and you can proceed with the service.
   2. If the submission requires further action due to invalid or incomplete fields, update the necessary KYC fields using the Update KYC endpoint, then resubmit the data using the Submit KYC endpoint.
   3. If the submission is rejected, the user may update and resubmit their KYC unless the rejection is permanent due to regulatory or compliance restrictions. (You may contact our support team for more information on the rejection and potential next steps.)