A Technical Introduction to Stellar Protocol SEP 9

Introduction

Before accepting the deposit and withdrawal of FIAT of an organization based on stellar, we are required to obtain KYC information from the user. There are two possible ways to collect information. One is interactive and the other is non-interactively.

Interactive KYC

In interactive KYC, users have to fill information on a webpage hosted under your organization. When the wallet pings the server, it responds with a URI that opens a form.

Non-interactive KYC

It allows the user to enter the required information into the wallet interface itself. When the wallet pings the server then it responds with required fields from the list of fields specified in SEP - 9. It is more customer-friendly.SEP-9 defines the list of KYC and AML fields which is required in the stellar protocol.

Rather than taking input, again and again, it allows the wallet to collect KYC information as per user and share with the issuer when needed. The organization needs to setup /customer endpoint on the wallet which can be further used by the user to upload KYC information. It allows uninterrupted flow for withdrawing and deposit.

KYC/AML fields

KYC/AML fields are divided into 2 categories.

User KYC fields

Name	Description
family_name/last_name	Last name of the user
given_name/first_name	First name of the user
address_country_code	Country code for current address.
mobile_number	The contact number of user
email_address	Email of the user.
bank_account_number	Account number of user
bank_number	Identification number of bank
tax_id	Tax identifier of the user
photo_id_front	Photo of the front side of the user’s ID card
photo_id_back	Photo of the backside of user’s ID card

Organization KYC fields

Name	Description
name	Name of the organization
VAT_number	VAT number of organization
registration_number	Registration number of Organization
number_of_shareholders	The total number of shareholders.
photo_proof_address	Photo identification URI of organization
email	Email of organization
phone	Contact of the organization
website	Website URL of the organization
photo_incorporation_document	Document of organization.

NOTE: All the fields will be followed by ‘organization.’

Addresses

Address formatting will vary from country to country. Address fields are fairly universal and encoded with country_code, state_or_province, etc and full address can be added by the user in ‘address’ field with the efficient parsing of it by fields like country, postal_code, city, etc. Above mentioned list of possible fields can be used according to the use cases.

Conclusion

In this blog, we learned about the stellar protocol 9. This for the KYC process. It helps us to understand the flow of KYC and the type of KYC flow along with AML.

Reference

For official document - https://github.com/stellar/stellar-protocol/blob/master/ecosystem/sep-0009.md