# Identity & Compliance — Overview

Banxa is a regulated financial services provider. Every customer who transacts through Banxa must pass identity verification (KYC) and comply with anti-money laundering (AML) requirements. This happens automatically within the Banxa checkout flow.

As an integration partner, you do not need to manage KYC — Banxa handles all identity verification, document collection, and regulatory compliance. However, there are optional ways to streamline the customer experience if you already collect identity information.

## How KYC works in the checkout

When a customer enters the Banxa checkout for the first time, they will be asked to provide:

- Personal details (name, date of birth, address)
- Identity document (passport, driver's licence, or national ID)
- In some cases, a liveness check (selfie video)


For returning customers, Banxa recognises them and may not require re-verification, depending on the transaction amount and jurisdiction.

## Verification levels

The level of verification required depends on the transaction amount and the customer's jurisdiction. Higher-value transactions require more thorough verification. Thresholds vary by jurisdiction and are not published — contact Banxa for details applicable to your markets.

→ See [Verification Flow](/products/hosted-checkout/docs/identity-compliance/verification-flow-and-tiers) for details on how the flow works.

## Streamlining KYC for your customers

If your platform already collects and verifies customer identity, you can share that information with Banxa to reduce or eliminate the KYC steps your customers need to complete in the checkout.


```mermaid
flowchart TD
    A{Does your platform\nverify customer identity?} -->|No| B[Banxa handles all KYC\nin checkout — no action needed]
    A -->|Yes| C{Which KYC\nprovider?}
    C -->|Sumsub| D[Sumsub token sharing\nSee Sumsub Integration]
    C -->|Other or in-house| E[KYC data sharing\nor contact Banxa]
    D --> F([Customer may skip KYC\nin Banxa checkout])
    E --> F
    B --> G([Customer completes KYC\nin Banxa checkout])
```

There are two ways to do this:

### 1. KYC data sharing

Pass customer identity data (name, address, document details) to Banxa before creating an order. This reduces the information the customer needs to re-enter.

### 2. Sumsub token sharing

If your platform uses Sumsub for KYC, you can pass a Sumsub share token to Banxa. Banxa retrieves the customer's verification data directly from Sumsub — the customer may be able to skip KYC entirely.

→ See [KYC Sharing](/products/hosted-checkout/docs/identity-compliance/kyc-sharing) and [Sumsub Integration](/products/hosted-checkout/docs/identity-compliance/sumsub-integration).

## Prerequisites for KYC sharing

KYC sharing must be enabled for your partner account before you can use the identity endpoint. Contact Banxa to:

1. Complete the Banxa questionnaire to confirm solution fit.
2. Receive approval and activation of the identity endpoint.
3. If using Sumsub: complete the token sharing agreement.


## Customer transparency

When using KYC sharing, inform your customers that their personal details and KYC documents will be shared with Banxa. This prevents confusion if Banxa needs to contact the customer for additional documentation.