Verifying a Counterparty

Understand how to verify a counterparty

Verifying a counterparty

You can create a counterparty identity verification via the POST /api/identity_verifications endpoint for "individual" and "business" customers.

An example POST /api/identity_verifications for an "individual" or a "business" customer request body is below:

{
  "type": "counterparty",
  "method": "watchlists",
  "customer_guid": "<insert customer_guid>",
  "counterparty_guid": "<insert counterparty_guid>"
}

As with most other resources, the POST response will return the "storing" state.

How to understand when a counterparty identity verification is complete

After creating a counterparty identity verification, you can check the state and outcome of the identity verification using the GET /api/identity_verifications/{identity_verification_guid} endpoint.

The counterparty identity verification will immediately progress from the "storing" state to the "waiting" state.

Waiting State

When the Cybrid Platform is waiting to start processing the identity verification:

• The counterparty identity verification will progress from the "storing" state to the "waiting" state.

Pending State

When the Cybrid Platform has started processing the counterparty identity verification:

• The counterparty identity verification will progress from the "waiting" state to the "pending" state.

Reviewing State

When the counterparty identity verification has been flagged for compliance review:

• The counterparty identity verification will progress from the "waiting" state to the "reviewing" state.

Completed State

When a counterparty account identity verification is either auto-approved or auto-rejected:

• The counterparty identity verification will progress to the "completed" state. See below for details regarding the outcome (i.e. passed, failed).

Passed Outcome

When the counterparty identity verification is either immediately auto-approved, or approved by the Cybrid team while in the "reviewing" state:

• The counterparty identity verification will progress to the "completed" state with a "passed" outcome.

👍

When "outcome":"passed", the counterparty identity verification is complete and successful, and the counterparty will progress to "state":"verified".

Failed Outcome

When the counterparty identity verification is either immediately auto-rejected, or rejected by the Cybrid team while in the "reviewing" state, the counterparty identity verification will progress to the "completed" state with a "failed" outcome, and the "failure_codes" array will return one of the following errors:

• "pep_check_failure": If the individual is a known Politically Exposed Person (PEP), they may show up on this AML report.
• "media_check_failure": If the individual or business shows up on Adverse Media, they may show up on this AML report.
• "watchlist_check_failure": If the individual or business is on a known government or international watchlist or sanctions list, they may show up on this report.

Note: The counterparty will remain in the "unverified" state until a successful counterparty identity verification is completed.

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When "outcome":"failed", the counterparty identity verification is complete but not successful, and a new counterparty identity verification must be created.

Expired State

When the counterparty identity verification has been in "waiting" state for 24 hours:

• The Persona document submission inquiry link will expire and is no longer usable for uploading supplementary documents.
• The counterparty identity verification will progress to the "expired" state.

Note: The counterparty will remain in the "unverified" state until a successful counterparty identity verification is completed.

❗️

When "state":"expired", the counterparty identity verification did not complete, and a new counterparty identity verification must be created.