When creating a customer, several validations are carried out to ensure regulatory compliance, financial security, and risk mitigation. Based on the information and documents you provided, here's a detailed breakdown of the validations that typically take place during customer creation:

1. Document and Data Verification

• Required Documents: Ensuring that all necessary documentation, such as identification proof, address verification, and tax-related documents, have been submitted.

• Data Completeness: Verifying that all required fields are filled accurately (e.g., personal details, business registration data for corporate clients, etc.).

• Data Accuracy: Cross-checking customer information to ensure there are no inconsistencies or errors.

2. AML (Anti-Money Laundering) Screening

• Domestic and International Restrictive Lists: The customer's details are screened against various restrictive lists to check if they are involved in prohibited or high-risk activities. This includes:

  • Sanctions Lists: Checking against global sanctions lists (e.g., OFAC, UN, EU sanctions).

  • Internal Restrictive Lists: Internal blacklists that may be maintained by the institution for clients previously identified as high risk.

• Brazilian Tax Authority Status: Verifying the customer's status with the Brazilian Tax Authority (e.g., ensuring the customer is compliant with tax filings and there are no outstanding issues).

3. Risk Assessment Based on High-Risk Factors

• Negative Media Screening: The customer is checked for any involvement in negative media stories or associations that could suggest illegal or unethical behavior.

• PEP (Politically Exposed Person) Status: Screening to determine if the customer holds or has held a prominent public position, which could indicate higher risk for corruption or bribery.

• High-Risk Locations/Activities: Identifying if the customer is located in, or associated with, high-risk jurisdictions (countries with elevated risks of money laundering or terrorism financing). This also includes activities that are typically flagged as higher risk (e.g., large cash transactions, international transfers to high-risk countries).

4. Compliance Policy Checks

• Ensuring that the creation of the customer account is in full compliance with the institution's internal compliance policies. This can involve:

  • KYC (Know Your Customer): Confirming that the institution is adhering to KYC regulations, which might require detailed personal information and risk assessments.

5. Verification of Financial Activities

• Source of Funds: Verifying that the source of the customer’s funds is legitimate, especially for high-value transactions.

• Business Activities: For business customers, checking whether the business activities align with their declared operations and assessing the risk level of those activities.

These validations ensure that the institution adheres to compliance regulations and helps mitigate risks related to financial crimes, including money laundering, terrorist financing, and fraud. It also protects the institution from reputational damage and financial penalties for non-compliance.

The time it takes for a customer account to be approved depends on the completion of the KYC (Know Your Customer) check and whether all required data and documents have been provided. Here’s a breakdown:

Customer statuses:

1. INCOMPLETE: If the customer’s account is still in the INCOMPLETE status, it indicates that some required information or documents are missing. To proceed, ensure that all the necessary details are provided to update the status to ANALYSING.

2. ANALYSING: If the KYC check is still in progress, the status will be marked as ANALYSING. The review could be ongoing within the 3-day period. This timeline depends on your internal compliance policy.

3. APPROVED or REJECTED: Once the KYC process is complete, the customer account will either be:

   • APPROVED: If the customer passes the KYC check, their account will be approved.

   • REJECTED: If the customer fails to meet the requirements, their account will be rejected.

The operational limit available to customers is determined by internal policies and factors like the customer's profile, data, and documents provided during the onboarding process. To determine the exact limit that will be granted, you should contact your implementation manager, as they will have access to the relevant internal information and can verify the specific limit range assigned to the customer.

The Implementation Manager will be able to provide detailed insights into how limits are calculated and whether any special conditions or modifications apply to the customer's case.

Yes, it is. If a customer attempts to add a beneficiary or bank account that already exists in the system, the API will respond with a message indicating that the beneficiary or bank account already exists.