KYC/KYB & Accreditation

KYC/KYB & Accreditation

Lendscape implements robust Know Your Customer (KYC) and Know Your Business (KYB) procedures to ensure regulatory compliance, prevent fraud, and maintain the integrity of the platform. These processes are designed to verify the identity of users and assess the risk associated with each participant while balancing the need for privacy and decentralization inherent in DeFi platforms.

KYC Process

1. User Registration: All users must create a profile on the Lendscape platform, providing necessary personal information.

2. Identity Verification: Users undergo a multi-step verification process:

   • Document submission (government-issued ID, proof of address)

   • Biometric verification (facial recognition)

   • Liveness detection to prevent spoofing

3. Risk Assessment: AI-driven models assess the user's risk profile based on provided information and external data sources.

4. Ongoing Monitoring: Continuous monitoring of user activities to detect any suspicious behavior or changes in risk profile.

KYB Process

For business entities participating in the platform:

1. Business Registration: Entities must provide official registration documents and ownership information.

2. Beneficial Owner Identification: Verification of ultimate beneficial owners (UBOs) and key stakeholders.

3. Corporate Structure Analysis: Review of the company's structure to ensure transparency and legitimacy.

4. Industry-Specific Checks: Additional verifications based on the business type and associated risks.

Accreditation

Lendscape implements an accreditation system to ensure that participants meet certain standards:

1. Investor Accreditation: For liquidity providers, to ensure they meet regulatory requirements for sophisticated investors.

2. Borrower Creditworthiness: Assessment of borrowers' financial stability and ability to repay loans.

3. Auditor Accreditation: For third-party auditors involved in asset valuation and monitoring.

Technology and Compliance Integration

1. Automated KYC/KYB: Utilization of AI and machine learning for efficient processing of verification requests.

2. Blockchain Integration: Leveraging blockchain technology for immutable record-keeping of KYC/KYB data.

3. Smart Contract Compliance: Integration of compliance checks within smart contracts to ensure only verified users can participate in certain activities.

4. Decentralized Identity Solutions: Exploration of verifiable credentials and decentralized identifiers (DIDs) to enhance privacy while maintaining compliance.

Privacy and Data Protection

1. Data Minimization: Collecting only necessary information to comply with regulations.

2. Encryption: All personal data is encrypted both at rest and in transit.

3. User Control: Giving users control over their data, including the right to erasure where legally permissible.

Regulatory Compliance

1. Global Standards: Adherence to international AML/CFT standards, including FATF recommendations.

2. Jurisdictional Compliance: Tailored processes to meet specific regulatory requirements in different jurisdictions.

3. Regular Audits: Conducting internal and external audits of KYC/KYB processes to ensure ongoing compliance.