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Enhanced Due Diligence

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Enhanced due diligence (EDD) is a process that financial institutions use to check and monitor high-risk customers and unusual transactions for potential money laundering activities. The process for this varies depending on the scenarios and requires different types of information to be submitted for each of them.

Our new EDD APIs enable additional information to be submitted for:

  1. Customers,
  2. Businesses,
  3. Accounts, and
  4. Transactions.

The fields in the endpoints will vary depending on the type of entity it’s submitting for. Documents can also be attached to the EDD using our Documents endpoint.

Scenarios requiring EDD

EDD can be used during the onboarding process, right after the creation of Customer or Business, or as a response for an RFI. EDD can also be used for submitting recurring updates of Customer’s or Business’s information. Another scenario would be a response to a Customer Risk Rating (CRR), where if a customer or business is scored as High by the CRR, then a EDD is required.

See the API reference for more information regarding the EDD endpoint.

Prerequisites

This guide assumes that you have:

  • created a personal customer or business customer
  • have an existing account or transaction

EDD object

The EDD object represents additional information that’s related to the resource. Depending on the resource type, they will require different sets of fields.

Customer EDD

  1. Customer EDD allows Fintech to submit additional information about the customer. This EDD can be submitted after the customer is created, or as a response to a RFI for a KYC case. The info that can be submitted includes:
  2. EDD Reason - This would be the reason why the EDD is created. (CASE_REQUEST, STANDARD_SUBMISSION)
  3. Case ID - If EDD Reason is CASE_REQUEST, case_id needs to be submitted
  4. Employment Type - (CONTRACTOR, FULL_TIME, INTERN, PART_TIME, VOLUNTEER, TEMPORARY, RETIRED, STUDENT, or OTHER)
  5. Employment Income (Amount, Currency, Frequency and Source)
  6. Occupation (E.g. Product Manager, Full Stack Developer, etc)
  7. Occupation Industry (ACCOMMODATION_AND_FOOD_SERVICES, ADMINISTRATIVE_AND_SUPPORT_AND_WASTE_MANAGEMENT_AND_REMEDIATION_SERVICES, AGRICULTURE_FORESTRY_FISHING_AND_HUNTING, ARTS_ENTERTAINMENT_AND_RECREATION, CONSTRUCTION, CONSTRUCTION_OF_BUILDINGS, EDUCATIONAL_SERVICES, FINANCE_AND_INSURANCE, FOOD_MANUFACTURING, HEALTH_CARE_AND_SOCIAL_ASSISTANCE, INFORMATION, MANAGEMENT_OF_COMPANIES_AND_ENTERPRISES, MANUFACTURING, MINING_QUARRYING_AND_OIL_AND_GAS_EXTRACTION, OTHER_SERVICES, POSTAL_SERVICE, PRIMARY_METAL_MANUFACTURING, PROFESSIONAL_SCIENTIFIC_AND_TECHNICAL_SERVICES, PUBLIC_ADMINISTRATION, REAL_ESTATE_AND_RENTAL_AND_LEASING, RETAIL_TRADE, SPORTING_GOODS_HOBBY_MUSICAL_INSTRUMENT_AND_BOOK_STORES, TRANSPORTATION_AND_WAREHOUSING, UTILITIES, WHOLESALE_TRADE, WOOD_PRODUCT_MANUFACTURING)
  8. Residential Type (OWN, RENT, OTHER)
  9. Residential Expenses (Amount, Currency, and Frequency)
  10. Additional Questions and Answers

The information provided, along with the data provided through the KYC process, will allow Synctera to run a Customer Risk Rating on them.

The example below shows an EDD for a customer:

{
 "related_resource_id": "{{person_id}}",
 "related_resource_type": "CUSTOMER",
 "reason": "CASE_REQUEST",
 "case_id": "12345",
 "employment_type": "FULL_TIME",
 "occupation": "Investment Banker",
 "occupation_industry": "FINANCE_AND_INSURANCE",
 "residence_type": "RENT",
 "residential_expense": {
   "amount": 1000000,
   "currency": "USD",
   "frequency": "MONTHLY"
 },
 "income": {
   "amount": 8000000,
   "currency": "USD",
   "frequency": "MONTHLY",
   "source": "EMPLOYMENT"
 },
 "additional_questions": [
   {
     "section": "income",
     "question": "How can you make so much money?",
     "answer": "Buy Low, Sell High"
   },
   {
     "section": "occupation",
     "question": "If employed, how long have you held your current position?",
     "answer": "Since 2023-04-15"
   }
 ]
}

Business EDD

Business EDD allows Fintech to submit additional information about the business. Business EDD can be after each business is created, or as a response to a RFI for a KYB case. The fields available include:

  1. EDD Reason - This would be the reason why the EDD is created. (CASE_REQUEST, STANDARD_SUBMISSION)
  2. Case ID - If EDD Reason is CASE_REQUEST, case_id needs to be submitted
  3. Country - The business’s Headquarters’ country.
  4. Industry Type - The Business’s industry. (ACCOMMODATION_AND_FOOD_SERVICES, ADMINISTRATIVE_AND_SUPPORT_AND_WASTE_MANAGEMENT_AND_REMEDIATION_SERVICES, AGRICULTURE_FORESTRY_FISHING_AND_HUNTING, ARTS_ENTERTAINMENT_AND_RECREATION, CONSTRUCTION, CONSTRUCTION_OF_BUILDINGS, EDUCATIONAL_SERVICES, FINANCE_AND_INSURANCE, FOOD_MANUFACTURING, HEALTH_CARE_AND_SOCIAL_ASSISTANCE, INFORMATION, MANAGEMENT_OF_COMPANIES_AND_ENTERPRISES, MANUFACTURING, MINING_QUARRYING_AND_OIL_AND_GAS_EXTRACTION, OTHER_SERVICES, POSTAL_SERVICE, PRIMARY_METAL_MANUFACTURING, PROFESSIONAL_SCIENTIFIC_AND_TECHNICAL_SERVICES, PUBLIC_ADMINISTRATION, REAL_ESTATE_AND_RENTAL_AND_LEASING, RETAIL_TRADE, SPORTING_GOODS_HOBBY_MUSICAL_INSTRUMENT_AND_BOOK_STORES, TRANSPORTATION_AND_WAREHOUSING, UTILITIES, WHOLESALE_TRADE, WOOD_PRODUCT_MANUFACTURING)
  5. Estimated Revenue - The estimated revenue generated by the business.
  6. Specific Involvement - The complete list needs to be provided for the business to declare if they’re involved or not. (arms_defense_or_security, cannabis_industry, embassies_or_consulates, illegal_activities_prostitution_or_pirated_goods, law_firm_or_fiduciary, licensed_money_service_business, lotteries_crypto_currency_or_illegal_internet_gambling, ngo_or_nonprofit, precious_metals_stones_or_jewellery, shell_banks_or_unlicensed_money_service_business, third_party_processor, wellness_gift_cards_wholesaler)
  7. Transaction Volume - The estimated volume the business is expected to transact using Synctera’s platform (on_synctera = true), and off Synctera’s platform (on_synctera = false).
  8. Additional Questions and Answers

The information provided, along with the data provided through the KYB process, will allow Synctera to run a Customer Risk Rating on them.

The example below shows an EDD request for a business:

{
 "related_resource_id": "c10ec16e-9d92-49af-892d-0c3627e0926e",
 "related_resource_type": "BUSINESS",
 "reason": "STANDARD_SUBMISSION",
 "country": "NO",
 "industry_type": "MINING_QUARRYING_AND_OIL_AND_GAS_EXTRACTION",
 "specific_involvement": {
   "ngo_or_non_profit": false,
   "licensed_money_service_business":false,
   "cannabis_industry": false,
   "wellness_gift_cards_wholesaler": false,
   "law_firm_or_fiduciary": false,
   "arms_defense_or_security": false,
   "precious_metals_stones_or_jewellery": false,
   "embassies_or_consulates": false,
   "illegal_activities_prostitution_or_pirated_goods": false,
   "lotteries_crypto_currency_or_illegal_internet_gambling": false,
   "shell_banks_or_unlicensed_money_service_business": false
 },
 "estimated_revenue": {
   "amount": 50000000,
   "currency": "USD",
   "frequency": "MONTHLY"
 },
   "transaction_volume": [
   {
   "on_synctera": true,
   "channel":"WIRES",
   "channel_coverage": "INTERNATIONAL",
   "currency": "USD",
   "transaction_count": 10,
   "amount": 8000000,
   "frequency": "MONTHLY"
   },
   {
   "on_synctera": true,
   "channel":"ACH",
   "channel_coverage": "DOMESTIC",
   "currency": "USD",
   "transaction_count": 50,
   "amount": 1000000,
   "frequency": "MONTHLY"
   }
   ],
 "additional_questions": [
   {
     "section": "business",
     "question": "Is the business involved in upstream or downstream?",
     "answer": "Upstream. We mainly provide geological and research services"
   },
   {
     "section": "revenue",
     "question": "What are some of the main business expenses?",
     "answer": "Salaries, Travel Expenses, and Research"
   }
 ]
}

Account EDD

Account EDD allows Fintech to submit additional information about the account. This is normally sent as a response to an account that’s under review or frozen. The info that can be submitted include:

  1. EDD Reason - This would be the reason why the EDD is created. (CASE_REQUEST, STANDARD_SUBMISSION)
  2. Case ID - If EDD Reason is CASE_REQUEST, case_id needs to be submitted
  3. Additional Questions and Answers

The example below shows an EDD request for an account:

{
 "related_resource_id": "c10ec16e-9d92-49af-892d-0c3627e0926e",
 "related_resource_type": "ACCOUNT",
 "reason": "CASE_REQUEST",
   "case_id": "12345",
 "additional_questions": [
   {
     "section": "reason",
     "question": "Explain the reason for the high number of transactions with value more than $25,000.",
     "answer": "These were invoice payments."
   }
 ]
}

Transaction EDD

Transaction EDD allows Fintech to submit additional information about a specific transaction. This will normally be expected to be sent as a response to an RFI for a transaction in review. These include:

  1. EDD Reason - This would be the reason why the EDD is created. (CASE_REQUEST, STANDARD_SUBMISSION)
  2. Case ID - If EDD Reason is CASE_REQUEST, case_id needs to be submitted
  3. Transaction purpose - The purpose of the transaction.
  4. Source of funds - (INVESTMENT, SALARY, OTHER, SALES)
  5. Additional Questions and Answers

The example below shows an EDD request for a transaction:

{
   "related_resource_id": "5c96bda6-60d9-4d6c-b05f-6ca4bcce79ce",
   "related_resource_type": "TRANSACTION",
   "reason": "CASE_REQUEST",
   "case_id": "12345",
   "source_of_funds": "OTHER",
   "transaction_purpose": "for tuition payment",
   "additional_questions": [
       {
       "section": "Source of funds",
       "question": "Where did this funds originated from?",
       "answer": "This was from a recent estate disbursement."
       },
       {
       "section": "Transaction Purpose",
       "question": "What was this payment for?",
       "answer": "Tuition fees at University of New York"
       }
   ]
}

Updated 11 months ago