🛡️ KYC Verification + AML Monitoring Flow
Last updated
Last updated
This flow illustrates the full lifecycle of a user's identity verification process on the Zyphe Platform — from vault creation and document validation to verifiable credential (VC) issuance and Anti-Money Laundering (AML) checks.
The process follows a two-pronged track:
User-side Flow (Left): User document verification, credential generation, and vault storage.
Business-side Flow (Right): Business rules validation, VC sharing, AML checks, and monitoring.
1. User Document Validation
✅ Already owns a vault?
No → Create a personal vault.
✅ Vault contains the required document?
Yes → Check if it's still valid.
✅ Is document still valid?
Yes → Share relevant data with the business.
No / Missing → Start document verification:
Collect document pictures.
Run verification in the background.
Perform authenticity checks.
❌ If invalid → Failure.
✅ If valid → Create Verifiable Credential (VC) and store in encrypted vault.
2. Business Rules & Requirements
✅ Assess if the document fits business-specific requirements.
Example: User may be underage or from a restricted region.
❌ If not → Failure.
✅ If yes → Proceed to data sharing.
3. VC Sharing & Document Update Logic
Share relevant data with the business.
✅ If it's a replacement document (of same type):
Update previous KYC results for businesses using that type.
💡 New revenue stream: Charge businesses for automatic updates.
4. AML Check Integration
✅ Ongoing monitoring enabled?
Yes → Share minimal VC info with Zypher AML monitoring module.
No → Perform one-time AML check (background job).
✅ Perform AML check
Match against PEPs, sanctions, etc.
✅ Is the user already in the list for AML checks?
Yes → Update result without re-enrolling.
No → Enroll user in the ongoing module.
📎 Attach AML result to the verification outcome.
Flexibility in business rules: VCs may pass authenticity checks but still fail business-specific KYC/AML criteria.
Proxy-friendly AML checks: Your system shares only necessary information with external AML providers — ensuring user data minimization.
Smart update mechanism: Businesses get real-time updates when a document is replaced — reducing redundant verifications.
