KYC: Why Identity Verification Is Required
Identity Verification (KYC) — Why It's Required
Before you can accept payments on Cartva — whether via MonCash, NatCash, bank transfer, or any other method — you must complete a brief identity verification process known as KYC (Know Your Customer). This requirement applies to all merchants, regardless of your subscription plan.
This article explains what KYC is, why it's legally required, and what to expect during the process.
What Is KYC?
KYC stands for Know Your Customer. It is a standardized process used by financial institutions and payment platforms worldwide to verify the identity of anyone who handles money on their platform.
The process typically takes under 3 minutes and is completed through our partner Didit, a certified identity verification provider.
Why Does Cartva Require KYC?
Cartva is a product of Hydryos Group LLC, a company registered in the State of New Mexico, United States. As a US-registered company that processes payments on behalf of merchants, Cartva is subject to several federal laws that make KYC legally mandatory.
Cartva acts as an intermediary between merchants and payment networks. This role triggers AML (Anti-Money Laundering) compliance obligations under US federal law.
The Legal Basis (US Federal Law)
1. Bank Secrecy Act (BSA) — 31 U.S.C. §§ 5311–5336
The Bank Secrecy Act is the foundational US anti-money laundering law. It requires businesses that transmit, process, or facilitate financial transactions to:
- Identify and verify the identity of their customers
- Maintain records of transactions
- Report suspicious activity to federal authorities
Cartva, by processing payments on behalf of merchants, falls under the scope of this law.
→ Read the Bank Secrecy Act (FinCEN)
2. USA PATRIOT Act — Customer Identification Program (CIP)
The USA PATRIOT Act (2001) expanded BSA requirements and mandated a formal Customer Identification Program (CIP) for all covered businesses. Under CIP rules, platforms like Cartva must:
- Collect the customer's name, date of birth, address, and ID number
- Verify that information using a government-issued document
- Retain records for a minimum of 5 years
3. FinCEN — Money Services Business (MSB) Rules
The Financial Crimes Enforcement Network (FinCEN) is the US Treasury bureau that enforces AML laws. Any business that transmits money or processes payments for third parties qualifies as a Money Services Business (MSB).
MSBs are required by law to:
- Register with FinCEN
- Implement a written AML compliance program
- Conduct KYC on all customers
- File Suspicious Activity Reports (SARs) when needed
→ FinCEN MSB Registration & Rules
4. New Mexico State Law
As a New Mexico LLC, Hydryos Group LLC is also subject to the New Mexico Uniform Money Services Act (NMSA § 58-32), which mirrors federal MSB requirements at the state level and requires identity verification for payment intermediaries.
→ New Mexico Money Services Act
International Standard: FATF Recommendation 10
Beyond US law, the Financial Action Task Force (FATF) — the global AML standard-setter — requires all payment intermediaries worldwide to perform customer due diligence (CDD), which includes identity verification.
FATF Recommendation 10 states: "Financial institutions should be prohibited from keeping anonymous accounts. They should be required to undertake customer due diligence (CDD) measures when carrying out occasional transactions above designated thresholds."
What Happens If You Don't Complete KYC?
If KYC verification is not completed:
- All payment methods remain locked — your customers will not be able to check out using any payment provider (MonCash, NatCash, bank transfer, etc.)
- Payouts are disabled — funds cannot be transferred to your account
- Repeated submission of fraudulent documents may result in permanent account suspension and may be reported to US authorities
What Does the Verification Process Look Like?
The KYC process is powered by Didit and takes approximately 2–3 minutes:
- Click "Verify my identity" on the Payments settings page
- A new tab opens with the Didit verification flow
- You will be asked to:
- Take a photo of a government-issued ID (passport, driver's license, or national ID)
- Take a selfie for liveness detection
- Didit reviews the documents automatically
- You receive a verification status (Approved or Rejected) — usually within minutes
Cartva only receives the final status (Approved / Rejected) and a unique verification ID. We do not store your ID documents.
Accepted Identity Documents
The following documents are accepted by Didit:
| Document | Accepted |
|---|---|
| Passport | ✅ |
| National ID Card | ✅ |
| Driver's License | ✅ |
| Residence Permit | ✅ (in most countries) |
| Voter ID | Varies by country |
Privacy & Data Retention
Your identity documents are processed and stored by Didit under their own privacy policy and in compliance with applicable AML/KYC data retention laws (minimum 5 years under BSA).
Cartva's privacy practices around KYC data are described in our Privacy Policy.
Frequently Asked Questions
Do I need KYC if I'm on a free plan?
Yes. KYC is required for all merchants regardless of subscription plan, as soon as you activate any payment method.
Does KYC expire?
Cartva reserves the right to request re-verification at any time to maintain regulatory compliance.
What if my verification is rejected?
Make sure your documents are not expired, clearly photographed, and match the name on your Cartva account. You can retry the process from the Payments settings page.
Is my data safe?
Yes. Didit is a certified KYC provider that complies with GDPR and US privacy regulations. Cartva never stores your raw identity documents.
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