KYC & AML
KYC & AML
Know Your Customer & Anti-Money Laundering
Dinario requires one-time identity verification to comply with US and international financial regulations.
Why KYC is Required
Legal Requirement
All crypto-to-fiat services in the US must comply with:
Bank Secrecy Act (BSA)
FinCEN regulations
State money transmitter laws
This includes:
Coinbase ✅
Kraken ✅
Moonpay ✅
Dinario ✅
No exceptions: If a service offers crypto → fiat in the US, KYC is legally required.
What KYC Prevents
KYC/AML regulations are designed to prevent:
💣 Terrorist financing
💰 Money laundering
🚫 Sanctions evasion
🔫 Illegal activity funding
Dinario's responsibility: Verify you are who you say you are, and you're not on a sanctions list.
Dinario's KYC Provider: Sumsub
We use Sumsub for identity verification:
✅ Industry-leading KYC provider
✅ Trusted by major crypto companies
✅ SOC 2 Type II certified
✅ GDPR compliant
✅ Bank-level encryption
Why Sumsub?
Fast verification (5-10 minutes)
High approval rates
Secure data handling
Industry standard for crypto
What Information is Required
Required Documents:
Government-issued ID
Passport, OR
Driver's license, OR
National ID card
Selfie (liveness check)
Real-time photo of your face
Prevents fake IDs
Confirms you're a real person
Basic Personal Information
Full legal name
Date of birth
Residential address
Nationality
What We DON'T Collect
Sumsub does NOT require:
❌ Your wallet addresses
❌ Your transaction history
❌ Your crypto holdings
❌ Your trading patterns
❌ Your bank account details (separate flow)
❌ Your source of funds (unless flagged)
Privacy note: KYC verifies WHO you are, not WHAT you own.
KYC Process (Step-by-Step)
Step 1: Initiate Cash-Out
User attempts first cash-out
System checks KYC status
If not verified → redirect to Sumsub
Step 2: Sumsub Verification
Upload ID
Take photo of your government ID
Both sides if applicable
Must be valid and non-expired
Take Selfie
Real-time photo of your face
Follow on-screen instructions
May require head movement (liveness check)
Provide Info
Enter name, DOB, address
Must match ID exactly
Submit
Click "Submit for Review"
Verification begins
Step 3: Review (Automated)
Sumsub AI checks:
✅ ID is valid and not expired
✅ ID is not fake or tampered
✅ Selfie matches ID photo
✅ Person is not on sanctions lists
✅ Information is consistent
Time: Usually 5-10 minutes (automated)
Possible outcomes:
✅ Approved → Continue to cash-out
⚠️ Pending → Manual review needed (rare)
❌ Rejected → ID issue or sanctions match
Step 4: KYC Complete
Once approved:
✅ Status saved to your account
✅ Can proceed with cash-outs
✅ No need to verify again (unless flagged)
One-time process: You only do this once.
KYC vs. Privacy
Common Question: "Doesn't KYC break privacy?"
No. Here's why:
KYC verifies: WHO you are Privacy protects: WHAT you own
Dinario separates these:
Sumsub knows your identity
Sumsub does NOT know your wallet addresses
Sumsub does NOT know your holdings
Bridge knows the ephemeral wallet
Bridge does NOT know your main wallet
Result: Compliant with law, but wallet stays private.
What Each Party Sees
Sumsub (KYC)
✅ Yes
❌ No
❌ No
Bridge (Fiat)
✅ Yes
⚠️ Ephemeral only
❌ No
Banks
✅ Yes
❌ No
❌ No
Dinario
✅ Yes
⚠️ Ephemeral only
❌ No
Your main wallet: Hidden from everyone.
Data Security
How Sumsub Protects Your Data
🔒 Encryption: AES-256 encryption at rest and in transit
🏰 Access control: Role-based access, audit logs
🛡️ Compliance: SOC 2 Type II, GDPR, ISO 27001
🗑️ Data retention: Deleted after regulatory period (varies by jurisdiction)
Dinario's Data Policy
We do NOT store:
❌ Your ID documents (Sumsub stores)
❌ Your selfie (Sumsub stores)
❌ Your wallet private keys (you store)
We DO store:
✅ KYC verification status (approved/pending/rejected)
✅ Sumsub applicant ID (reference only)
✅ Transaction history (amounts, dates, ephemeral wallets)
We CANNOT access:
❌ Your Sumsub documents (encrypted, Sumsub only)
❌ Your wallet private keys (non-custodial)
Common KYC Issues
Issue 1: ID Rejected
Reasons:
ID is expired
Photo is blurry
ID is damaged or altered
ID type not supported
Solution:
Use a different ID
Retake photo in good lighting
Ensure ID is valid and clear
Issue 2: Selfie Rejected
Reasons:
Liveness check failed
Face doesn't match ID
Photo is blurry or dark
Solution:
Follow on-screen instructions carefully
Use good lighting
Remove glasses/hat if requested
Ensure face is clearly visible
Issue 3: Manual Review
Reasons:
AI couldn't verify automatically
Borderline ID quality
Complex case
Solution:
Wait for manual review (24-48 hours)
Check email for updates
Provide additional documents if requested
Issue 4: Rejected for Sanctions
Reasons:
Name matches OFAC sanctions list
Country is sanctioned
High-risk jurisdiction
Solution:
If false positive: Contact support with proof
If legitimate: Service unavailable in your jurisdiction
KYC Limits & Tiers
Current limits: Based on verification level
Tier 1: Basic KYC
Verification: ID + Selfie
Limit: $10,000 per transaction
Limit: $50,000 per month
Tier 2: Enhanced KYC (if needed)
Verification: Additional docs (proof of address, source of funds)
Limit: $100,000 per transaction
Limit: $500,000 per month
Note: Most users only need Tier 1.
Regulatory Compliance
Dinario complies with:
✅ FinCEN (Financial Crimes Enforcement Network)
✅ OFAC (Office of Foreign Assets Control)
✅ State money transmitter licenses (via Bridge)
✅ Bank Secrecy Act (BSA)
✅ PATRIOT Act
Bridge (our fiat partner) holds:
✅ Money transmitter licenses in all 50 US states
✅ FinCEN registration
✅ Compliance program
Result: Fully compliant, legally operating service.
Privacy-First KYC
Dinario's approach:
✅ KYC for compliance (legally required)
✅ Privacy for transaction protection (not required, we do it anyway)
This means:
We verify your identity (law)
We hide your wallet (privacy)
You get:
✅ Legal, compliant service
✅ Private, unlinkable transactions
Next: Audit Status for security audit information.
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