Enhanced Due Diligence
To ensure that Paxos meets regulatory requirements, when an identity is deemed high risk according to Paxos risk rating methodology, we initiate a process called Enhanced Due Diligence (EDD). This can occur during onboarding, or during the lifecycle of an active identity (for example, if identity information changes that impacts risk rating). When an identity enters the EDD process, Paxos requires the collection of documentary evidence supporting the initial KYC information provided.
We can automate this using a webhook-based or polling-based approach, which leverages Paxos Webhooks, Events API and Document Upload API.
Webhook-based Approach (preferred)
➊ Consume Documents Required Events
Setup a Webhook Consumer to receive identity.documents_required events for your end users.
➋ Fetch Required Documents
Call Get Event to fetch the event's identity_documents_required object, which will allow you to understand which documents are required.
➌ Upload the Required Documents
For the event's associated identity_id, call Document Upload to upload the required documents, either synchronously if you already have the documents, or asynchronously if you need to reach back out to your customer for them to provide.
➍ Wait for Approval or Denial
This will be followed by an identity.approved or identity.denied event based on the onboarding decision for that end user (this might take up to 1 full business day to complete).
Polling-based Approach
➊ Poll for Documents Required Events
Poll List Events, offsetting the range_begin for each subsequent poll, fetching all identity.documents_required events.
We recommend you keep track of the Event ids you've processed in order to idempotently process the event.
➋ Upload the Required Documents
For the event's associated identity_id, call Document Upload to upload the required documents, either synchronously if you already have the documents, or asynchronously if you need to reach back out to your customer for them to provide.