KYC and KYB Verification Policy
1. Purpose & Compliance Objectives
This Know Your Customer (KYC) and Know Your Business (KYB) Verification Policy ("Verification Policy") establishes the identity verification standards that every individual and business entity must fulfill to use the Paytali peer-to-peer exchange platform.
These standards ensure compliance with Central Bank AML/CFT directives in Egypt, Nigeria, and regional West African economic zones, protecting our community from fraud, identity theft, and illicit financial flows.
2. Tiered Verification Architecture
Paytali operates a structured, three-tiered verification hierarchy tailored to user roles and transaction volumes:
Tier 0: Unverified (Visitor)
No Trading PrivilegesAssigned upon basic email signup. Visitors may browse live market exchange rates, review merchant listings, and access educational materials, but cannot initiate orders, create ads, or send/receive funds.
Tier 1: Verified Buyer (Consumer)
Full P2P Buyer AccessMandatory for all currency buyers. Required verification steps include:
- Full legal name, date of birth, and nationality;
- SMS one-time password (OTP) verification of active mobile phone number;
- Valid government photo identity document (Egyptian National ID / Residence Permit, Nigerian NIN slip or International Passport);
- Real-time automated biometric selfie video liveness verification powered by Smile ID;
- Verification of personal bank account or mobile wallet name matching the verified identity document.
Tier 2: Verified Merchant (Business / Liquidity Provider)
Ad Publishing & Liquidity DeskMandatory for all merchants creating liquidity ads. Encompasses all Tier 1 requirements plus enhanced KYB diligence:
- Official corporate registration certificate (CAC certificate and Status Report for Nigeria; Commercial Register extract for Egypt);
- Identification of Ultimate Beneficial Owners (UBOs) holding 25% or greater equity or voting control;
- Proof of registered operating address (utility bill or commercial lease agreement dated within 3 months);
- Audited or verifiable bank statements demonstrating legitimate liquidity origin and source of funds;
- Deposit of mandatory security collateral (NGN / XOF) into the platform recourse vault.
3. Verification Technology: Smile ID Partnership
Paytali partners with Smile ID, Africa's leading digital identity verification authority. Verification requests query government-authorized identity repositories directly (including the Nigerian NIMC database and Nigerian Inter-Bank Settlement System [NIBSS] BVN registry).
Biometric facial matching evaluates 3D facial landmarks to ensure the applicant is physically present and matches the official identity photo, preventing the use of stolen photographs, masks, or deepfakes.
4. Rejection Criteria & Re-Verification
Verification applications may be rejected for any of the following reasons:
- Expired, obscured, cropped, or physically damaged identity documents;
- Failed biometric liveness check or mismatch between selfie and photo ID;
- Name discrepancy between government ID and registered bank account;
- Sanctions match, negative media findings, or prior fraud records;
- Submission of synthetic, edited, or digitally manipulated documentation.
Users must update their identity documentation upon expiration. Paytali conducts periodic re-verification of all active merchants and high-volume traders every 12 to 24 months.