Japan’s Leading KYC-AML Identity Verification

Tier 1: Basic KYC
(Up to ¥2,000,000 Per Day)

1. Customer Registration

• Personal Details:

  • Full Legal Name: Collect first, middle (if applicable), and last names.

  • Residential Address: Capture complete address details (street, city, state/province, country, postal code).

  • Nationality: Record based on official documents.

  • Email Address: Must be valid and unique.  

• Email Verification:

  • Send a verification link immediately upon registration.

  • Require the customer to click the link to confirm the email address.

  • Display a confirmation message on the website/dashboard.

2. Account Activation & Security

• Dashboard Access:

  • Unlock customer dashboard after successful email verification.

  • Display KYC status and relevant account details.

• Dynamic QR Code Generation:

  • Automatically generate a unique QR code upon activation.

  • Ensure the QR code refreshes every 60 seconds to maintain security.

  • Clearly show the QR code on the dashboard; note that it is required for each transaction.

• Security Measures:

  • Encrypt QR code data.

  • Log and monitor dashboard access and QR code usage patterns.

3. Transaction Management & Monitoring

• Daily Transaction Limit:

  • Allow transactions totaling up to ¥2,000,000 per day.

• Real-Time Tracking:

  • Continuously monitor cumulative daily transaction totals.

  • Implement an alert system to notify if nearing the limit.

• Account Locking:

  • Automatically lock the account when the daily limit is reached.

  • Display a clear message instructing the customer to complete Tier 2 Enhanced KYC to resume transactions.

Tier 2: Enhanced KYC
(For Transactions Over ¥2,000,000/Day or ¥5,000,000/Week)

1. Trigger & Notification

• Trigger Conditions:

  • Automatically trigger Tier 2 when:

    • A single day’s transactions exceed ¥2,000,000, or

    • Weekly transactions exceed ¥5,000,000.

• Customer Notification:

  • Send an immediate email and dashboard notification explaining the need for enhanced verification.

  • Provide clear, step-by-step instructions on the verification process.

2. Enhanced Verification Process Using idenfy KYC Software

• Government-Issued ID Verification:

  • Document Submission:

    • Request a high-quality image/scan of a government-issued ID (passport, driver’s license, or national ID card).

  • Automated Validation:

    • Use idenfy’s software to verify the authenticity and integrity of the submitted ID.

  • Cross-Check:

    • Match the ID details (name, date of birth, etc.) with the registration data.

• Live Facial Recognition:

  • Selfie Capture:

    • Prompt the user to take a live selfie within the app or via webcam.

    • Provide guidelines (good lighting, no obstructions, no excessive makeup or accessories).

  • Liveness & Match Verification:

    • Use idenfy’s facial recognition module to compare the selfie with the ID photo.

    • Ensure liveness detection to prevent spoofing.

• Blacklist Screening:

  • Automated Checks:

    • Run the customer’s details against internal and external sanction/blacklist databases.

    • Flag any potential matches for further manual review.

• Two-Factor Authentication (2FA):

  • Setup & Verification:

    • Require an additional 2FA step (via SMS, authenticator app, or email-based OTP).

    • Verify the 2FA code before finalizing the enhanced KYC process.

3. Post-Verification Steps

• Verification Outcome:

  • Successful Verification:

    • Send an email confirmation to the customer.

    • Unlock the account and restore transaction capabilities.

  • Unsuccessful Verification:

    • Notify the customer of issues and provide clear instructions for reattempts or manual review.

• Data Management & Compliance:

  • Securely store all submitted documents and verification logs.

  • Maintain audit trails and ensure compliance with data protection regulations.

• Ongoing Monitoring:

  • Periodically review verification data and update screening lists as required.

Tier 3: High-Value KYC
(For Transactions Exceeding ¥5,000,000 Per Week OR ¥10,000,000 Per Month)

1. Trigger & Initial Notification

• Trigger Conditions:

  • Automatically flag accounts when:

    • Weekly transaction totals exceed ¥5,000,000, or

    • Monthly transaction totals exceed ¥10,000,000.

• Customer Notification:

  • Send an immediate email and in-app alert explaining the requirement for enhanced verification.

  • Provide a detailed guide outlining next steps and the documents needed.

2. Document Collection & Verification

• Proof of Source of Funds:

  • Required Documents:

    • Recent bank statements (covering at least the last 3–6 months).

    • Salary slips or other proof of income.

  • Document Guidelines:

    • Clear, legible scans or photographs.

    • All critical information (e.g., account number, bank details, income figures) must be visible.

• Employer & Income Verification:

  • Employer Documentation:

    • Employment verification letter or contract.

    • Recent pay stubs, if applicable.

  • Verification Process:

    • Cross-check submitted documents against registration details.

    • Use automated validation tools where available.

3. Enhanced Biometric Authentication

• Additional Biometric Checks:

  • Implement an extra layer of biometric authentication (e.g., advanced facial recognition, fingerprint scanning, or iris scan).

  • Ensure robust liveness detection to confirm the authenticity of the biometric data.

• System Integration:

  • Integrate these checks with your existing KYC software and monitoring systems.

  • Document the results and flag any anomalies for review.

4. Manual Compliance Officer Review

• Review Process:

  • A dedicated compliance officer manually reviews all submitted documents and biometric data.

  • Confirm the authenticity and consistency of source of funds and income verification.

• Decision & Follow-Up:

  • Approve the enhanced verification if all checks are clear.

  • If discrepancies are found, communicate specific issues to the customer with instructions for re-submission or additional verification.

5. Outcome & Account Status

• Successful Verification:

  • Unlock high-value transaction limits.

  • Send confirmation email and update account status.

• Unsuccessful Verification:

  • Inform the customer of the reasons for rejection.

  • Provide a clear path for reattempting the verification process.

Tier 4: Corporate & Politically Exposed Person (PEP) KYC

1. Trigger & Customer Identification

• Applicable Entities:

  • Accounts belonging to businesses, corporations, or individuals identified as Politically Exposed Persons (PEP).

• Initial Screening:

  • Automatically flag accounts based on predefined risk profiles and business types.

  • Send an immediate notification outlining the enhanced KYC process required for corporate or high-risk individuals.

2. Document Collection & Verification

• Corporate Documentation:

  • Company Registration Documents:

    • Certificate of Incorporation.

    • Articles of Association or equivalent.

  • Tax Documents:

    • Recent tax returns or official tax registration certificates.

  • Corporate Bank Account Verification:

    • Bank statements or a verification letter from the corporate bank.

• Politically Exposed Person (PEP) Requirements:

  • UBO Identification:

    • Detailed information on the Ultimate Beneficial Owners (UBOs) including identification documents.

  • Supplementary Documents:

    • Any additional documentation that supports the identification of PEP status.

• Document Guidelines:

  • Ensure documents are current, clear, and legible.

  • Validate that company details match across all submitted documents.

3. Verification Process

• Automated and Manual Checks:

  • Run automated verifications against corporate registries and government databases.

  • Cross-check the UBO details and perform risk assessments.

• Enhanced Due Diligence:

  • Utilize specialized software for corporate and PEP risk analysis.

  • Ensure all data is consistent with public records and internal databases.

4. Manual Compliance Officer Review

• Detailed Manual Review:

  • A compliance officer conducts a comprehensive review of all documents.

  • Verify the legitimacy of corporate structures, ownership details, and financial standing.

  • For PEPs, confirm no sanctions, negative news, or additional risk indicators are present.

• Risk Assessment:

  • Document all findings, noting any inconsistencies or high-risk flags.

  • Decide on approval, additional documentation, or further investigation as necessary.

5. Outcome & Account Status

• Successful Verification:

  • Send a confirmation email upon completion of the manual review.

  • Update the account status to reflect verified corporate/PEP status, enabling full transaction capabilities.

• Unsuccessful Verification:

  • Clearly communicate any issues to the customer.

  • Provide detailed instructions for remedy or further documentation if needed.

How We Secure Your Data

All sensitive customer KYC data is securely stored on encrypted servers, ensuring compliance with global security standards.

Our own database only stores minimal reference data to track transactions and compliance triggers, reducing security risks.