Verifications

The verifications object:

  "verifications": {
    "identity": "not_started",
    "accreditation": "not_started",
    "authorized_signatory": "not_started"
  }

Identity Verification

The Party data model is designed to streamline data collection and accurately represent hierarchical structures, thereby facilitating efficient identity verification and Anti-Money Laundering (AML) checks on both individuals and complex legal entities.

This data collection encompasses a range of necessary details, including personal or legal entity contact data, residency or domicile specifics, tax identification information, as well as relevant governmental ID for individuals or formation documents for entities.

For complex legal entities, the Customer Identification Program (CIP) verification process occurs at two levels. Firstly, it is conducted at the entity level to validate the legitimacy of the legal entity. Secondly, it extends to all beneficial owners of the legal entity, a process that can be recursive in nature given the complexities of legal entities and the relationships between parties involved. This dual-level verification ensures a thorough vetting process, aligning with regulatory requirements and enhancing overall risk management.

Accredited Verification

Not all instruments available on our marketplace require a verified accreditation status for investment. In most cases, investors can simply attest to their accredited status at the party level. However, when dealing with instruments that utilize the Regulation D - 506(c) exemption, documented proof of your accredited status becomes a requirement. This process is known as accredited verification.

Similar to the Customer Identification Program (CIP) verification, the Party Data Model has been designed to accommodate accredited verification procedures for both individuals and complex legal entities. By embedding this functionality within the model, we are ensuring seamless and efficient compliance with the necessary regulatory requirements for certain types of investments.

Authorized Signatories

For individual parties, the authorized signatory is typically the individual themselves. However, when an individual collaborates with an advisor, this advisor can also serve as an authorized signatory, provided they furnish a Letter of Authorization (LOA).

For entity parties, such as trusts, certain roles are automatically recognized as authorized signatories. For instance, a trustee of a trust or a member with a 25% or more stake in an LLC are deemed authorized signatories by default. Often, these entities may delegate power of attorney to a wealth manager or advisor. In such instances, upon providing an LOA, the wealth manager or advisor can also be included as an authorized signatory for the entity party.

Ready to Trade

A Party will move to ready to trade status once the identity verification process has been successfully completed by individuals or Entities & their respective UBOs(Underlying beneficial owners). This ensures a secure and compliant environment for conducting transactions.

Party Documents

Our Party data model facilitates the upload of documents necessary for Customer Identification Program (CIP) identity checks and accredited verification procedures.

Identity verification documents

As a crucial step in the onboarding process for investment accounts, all account owners are required to undergo identity verification in accordance with regulatory compliance. This procedure includes Anti-Money Laundering (AML) checks.

We strive to verify identities using our streamlined Lightning Verification process, which typically does not necessitate identity proof documents. However, in instances where Lightning Verification is unsuccessful, we will require the upload of identity proof documents for further verification.

To expedite the process, we recommend uploading your identity proof prior to initiating account verification. This proactive step ensures that our system can automatically transition to document verification if Lightning Verification encounters any issues.

{
  "id": "497f6eca-6276-4993-bfeb-53cbbbba6f08",
  "name": "Individuals passport biographic page",
  "purpose": "identity_verification",
  "description": "US passport biographic page",
  "document_type": "passport",
  "document_subtype": "USA",
  "document_link": "signed document link",
  "party_id": "497f6eca-6276-4993-bfeb-53cbbbba6f88"
}

Accredited verification documents

In compliance with SEC regulations, CaliberX diligently confirms the accredited investor status of your clients. Leveraging seamless integration with pertinent databases, our platform conducts comprehensive background checks to ensure your clients fulfill the necessary income or net worth criteria.

Take, for example, Rule 506(C), which permits general solicitation. This regulation mandates us to validate the accredited investor status of your clients. In response to this, we have developed robust APIs akin to those used in Identity Verification. These tools streamline the process of confirming accredited investor status, providing a seamless, efficient service via our advanced APIs.

{
  "id": "497f6eca-6276-4993-bfeb-53cbbbba6f08",
  "name": "Tax return 2021 and 2022 combined",
  "purpose": "accredited_verification",
  "description": "Individuals tax returns",
  "document_type": "tax_form",
  "document_subtype": "free form text",
  "document_link": "signed document link",
  "party_id": "497f6eca-6276-4993-bfeb-53cbbbba6f88"
}