Built-In KYC, AML & Fraud Detection
Compliance is not optional in payments. MAGNETPAY embeds KYC verification, AML screening, and real-time fraud detection directly into your payment flow. Automated identity checks, sanctions screening, and risk scoring protect your business without slowing down legitimate customers.
Comprehensive Compliance Infrastructure
From KYC verification at onboarding to continuous transaction monitoring, MAGNETPAY provides the compliance tools payment platforms need to operate globally.
KYC Verification
Automated identity verification through Veriff and SumSub. Document capture, liveness detection, and biometric matching with 95%+ auto-approval rates for clean submissions.
AML Screening
Real-time screening against OFAC, EU, UN, and 200+ country sanctions lists. PEP (Politically Exposed Persons) checks and adverse media monitoring on every customer.
Fraud Detection Engine
Machine-learning risk scoring on every transaction. Device fingerprinting, velocity checks, geo-anomaly detection, and BIN intelligence to catch fraud before it costs you.
Tiered Compliance
Configure compliance requirements by risk tier. Light KYC for low-value transactions, enhanced due diligence for high-value accounts. Automated escalation based on transaction patterns.
Transaction Monitoring
Continuous monitoring of transaction patterns against AML rules. Suspicious activity detection, automated SAR generation, and case management for compliance teams.
Data Protection
All PII encrypted with AES-256-GCM at rest. GDPR-compliant data handling with configurable retention policies. Right-to-erasure support with audit trails.
How KYC & Compliance Works
Set up compliance automation in minutes. Configure rules, let the system handle verification and monitoring, and focus on edge cases.
Configure Compliance Rules
Set your KYC tiers, risk thresholds, and screening rules in the dashboard. Define which verification levels are required for different transaction amounts and customer types.
Customer Verification
When a customer reaches a compliance trigger, the KYC flow launches automatically. Document upload, liveness check, and biometric verification happen in-session with minimal friction.
Continuous Monitoring
Every transaction is scored by our risk engine and screened against sanctions lists. Suspicious patterns trigger alerts, transaction holds, or account reviews based on your configuration.
Case Management
Flagged transactions and accounts appear in your compliance dashboard. Review, approve, reject, or escalate cases with a full audit trail for regulatory reporting.
KYC Verification API in Action
Initiate a KYC verification session for a customer. The process handles document capture, liveness detection, and sanctions screening automatically.
curl -X POST https://api.magnetpay.org/v1/compliance/verifications \
-H "Authorization: Bearer sk_live_..." \
-H "Content-Type: application/json" \
-d '{
"customer_id": "cus_9f3kR2xL",
"tier": "enhanced",
"checks": ["identity", "document", "liveness", "sanctions", "pep"],
"document_types": ["passport", "national_id", "drivers_license"],
"redirect_url": "https://yourapp.com/kyc/callback",
"metadata": {
"trigger": "deposit_threshold",
"amount_usd": 10000
}
}'{
"id": "ver_5kNm8xPq",
"object": "verification",
"status": "pending",
"customer_id": "cus_9f3kR2xL",
"tier": "enhanced",
"provider": "veriff",
"session_url": "https://magic.veriff.me/v/...",
"checks": {
"identity": "pending",
"document": "pending",
"liveness": "pending",
"sanctions": "clear",
"pep": "clear"
},
"expires_at": "2026-03-25T13:30:00Z"
}KYC & Compliance FAQ
What is KYC verification in payments?
KYC (Know Your Customer) verification is the process of confirming the identity of customers before allowing them to transact. In payment platforms, KYC is required by regulations to prevent money laundering, terrorism financing, and fraud. MAGNETPAY automates KYC through Veriff and SumSub integrations, supporting document verification (passport, ID, driver's license), liveness detection, biometric matching, and proof-of-address checks.
How does AML compliance work with MAGNETPAY?
MAGNETPAY provides automated AML (Anti-Money Laundering) compliance through three layers: (1) Customer screening against OFAC, EU, UN, and 200+ country sanctions lists at onboarding and continuously. (2) Transaction monitoring with configurable rules for suspicious patterns like structuring, rapid movement, and unusual volumes. (3) Case management for compliance officers to review flagged activities and generate SARs (Suspicious Activity Reports).
What risk scoring factors are used for fraud detection?
MAGNETPAY's fraud detection engine evaluates 50+ signals per transaction including: device fingerprint and history, IP geolocation and VPN detection, card BIN risk level, transaction velocity (frequency and amount patterns), shipping/billing address mismatch, time-of-day patterns, customer account age, historical chargeback data, and behavioral biometrics. Each signal contributes to a composite risk score that determines whether to approve, review, or block the transaction.
Can I customize compliance rules for different markets?
Yes. MAGNETPAY supports market-specific compliance configurations. You can set different KYC requirements, transaction limits, and screening rules per country or region. For example, you might require enhanced due diligence for high-risk jurisdictions while using simplified KYC for low-risk markets. Tiered compliance lets you start with basic verification and progressively enhance as customers reach higher transaction thresholds.
Is MAGNETPAY compliant with GDPR and data protection laws?
Yes. MAGNETPAY is designed for GDPR compliance with data minimization, purpose limitation, and configurable retention policies. All PII is encrypted with AES-256-GCM at rest and TLS 1.3 in transit. We support right-to-erasure requests with proper audit trails, data portability exports, and consent management. Compliance data required for regulatory retention is handled separately from general PII with appropriate legal basis documentation.
Related Payment Features
Automate Your Compliance
Stop building compliance infrastructure from scratch. MAGNETPAY provides KYC, AML, and fraud detection out of the box so you can focus on your product.