Qualify Investors¶
Qualification confirms that an investor may take part in an offering. TransactAPI supports three kinds of qualification: identity and watch-list checks (KYC/AML), suitability, and accredited investor verification. Each is optional in the API. Which ones you need is usually set by the offering's exemption and by the broker-dealer or escrow agent on the offering.
KYC, AML, suitability, accredited investor, and entity methods can be used in any order, at any time they are required.
Key Concepts¶
| Qualification | Applies to | Methods | Result stored on | Billed in production |
|---|---|---|---|---|
| KYC/AML | Party (individual) or entity | performKycAmlBasic, performKycAml, updateKycAml, performAml, requestKycAml | The party: kycStatus and amlStatus | All but updateKycAml |
| Suitability | Account | calculateSuitability, updateSuitability, getSuitability | The account's suitability record; suitabilityScore on the account | No |
| Accredited investor | Account | uploadVerificationDocument, requestAiVerification, getAiRequest, updateAiRequest | The verification request (aiRequestStatus) and the account (accreditedStatus) | requestAiVerification |
Sandbox calls are not billed. See the Fee Schedule.
KYC/AML runs against parties and entities, while suitability and accreditation run against accounts. Complete Onboard Investors first so the party, account, and link exist.
KYC and AML statuses¶
A party's kycStatus and amlStatus take one of these values:
| Status | Meaning |
|---|---|
Pending | No check has completed yet. This is the default. |
Auto Approved | An automated check passed. |
Disapproved | An automated check did not pass, or a reviewer rejected the party. |
Manually Approved | A North Capital reviewer approved the party after a manual review. |
Needs More Info | The manual review needs more documents. |
New Info Added | Documents were added and the manual review can continue. |
Accreditation statuses¶
An account's accreditedStatus is Pending, Self Accredited, Verified Accredited, or Not Accredited. A verification request's aiRequestStatus moves from Pending through review to Approved or Rejected, with Need More Info and New Info Added in between when more documents are needed. See Accredited Investor Verification.
Webhooks¶
The KYC/AML checks and the accreditation methods send webhooks; the suitability methods do not. See KYC/AML and Accreditation in the webhook method reference.
Next¶
Start with KYC/AML Verification. When the investor is qualified, continue to Create the Trade.