What is KYC?

Definition

KYC means "Know Your Customer" and are a set of legal obligations related to the MANGOPAY license as an electronic money issuer and are necessary in order to fight fraud, money laundering and financing of terrorism. There are 3 levels of validation (light, regular and strong) and the whole process of uploading documents and viewing a user's KYC level is all managed through the API. A higher KYC level allows a user to handle higher volumes of cash flows:
 

  • Light validation: Transactions worth less than €2,500 for cash-in and/or €1,000 for cash-out cumulated per legal year and per user,
  • Regular validation: Transactions worth more than €2,500 for cash-in and/or €1,000 for cash-out cumulated per legal year and per user,
  • Strong validation: Clients suspected of money laundering and/or terrorism and/or politically exposed people.
 

A user will never be blocked due to going over their allowed KYC volumes when doing a payin - only transfers or payouts can be blocked.

 

Cash-in/out calculation



Cash-in is:


Increased when :
  • a payin bankwire / payin web / payin token / preauthorized payin is done
  • a transfer is done
Decreased when :
  • a payin bankwire / payin web / payin token / preauthorized payin is refunded
  • a transfer is refunded
 

Cash-out is:

 
  • increased when a payout is done
  • decreased when a payout is refunded

The table below details all the combinations:


 
Increase annual Cashin count
Increase annual Cashout count
Blocked by
Pay-In Limit
Blocked by
Pay-Out Limit
Decrease annual Cashin count
Decrease annual Cashout count
Pay-out
N/A
Yes blocked blocked
N/A
N/A
Pay-in Direct / Preauthorized / Web / Bankwire
Yes N/A Unblocked Unblocked
N/A
N/A
Transfer to a different CreditedUserID
Yes No blocked blocked
N/A
N/A
Transfer to the same CreditedUserID
No No Unblocked Unblocked
N/A
N/A
Transfer Refund
No No Unblocked Unblocked Yes No
Payout Refund
N/A No Unblocked Unblocked No Yes
Payin Refund  N/A No Unblocked Unblocked Yes No
Repudiation N/A No Unblocked Unblocked No No
Settlement No No Unblocked Unblocked No No

KYC flow


To change the KYC level, MANGOPAY clients must provide certain information about the given user, as well as various documents (detailed onto the technical documentation).


The KYC upload process involves several steps that are precisely described onto the technical documentation.

 

Technically : In the API, a KYC document is composed of pages. As a MANGOPAY client, it implies the following requests
POST request to the endpoint /ClientId/users/UserId/kyc/documents with the type of document that needs to be created (a KYC document Id is returned),

As many POST requests as needed to the endpoint /ClientId/users/UserId/kyc/documents/KYCDocumentId/pages (one request per page) with the encoded (base64) file in the body.

The document is now uploaded. Its status needs to be changed so that MANGOPAY team can analyze and validate it

PUT request to the endpoint /ClientId/users/UserId/kyc/documents/KYCDocumentId with the status "VALIDATION_ASKED".

Once validated by the MANGOPAY team, the status of the document is changed to "VALIDATED".

 

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