KYB

Sonica employs a rigorous KYB process to ensure that new originators and issuers wishing to join the platform comply with legal and regulatory standards. This process not only meets legal requirements but also ensures the integrity and security of the platform, protecting investors and keeping the system free from potentially fraudulent or high-risk entities.

The KYB Process

1. Information Collection: The process begins with the collection of detailed information about the company that wants to become an originator or issuer on the platform. This includes, but is not limited to, basic information such as company name, physical address, and contact details. Additionally, documents that prove the legality and legitimacy of the company, such as the certificate of incorporation (or equivalent), commercial registrations, and operational licenses, are required.

2. Verification and Validation: After collection, the information is submitted to a verification process to confirm its authenticity. This includes verifying the provided documents with relevant issuing bodies and conducting background checks on significant directors and owners.

3. Risk Analysis: The KYB also involves a detailed risk analysis, considering factors such as the company's sector of operation, countries of operation, and financial history. This helps identify any red flags or areas of concern that may require further due diligence.

4. Regulatory Compliance: The process checks the company's compliance with relevant local and international regulations, including those related to anti-money laundering (AML) and counter-terrorism financing. Sonica ensures that all issuers comply with applicable laws to avoid legal and reputational implications.

5. Final Approval: After completing all verifications and analyses, a compliance committee reviews the case and decides on the applicant's approval as a new originator or issuer on the platform. This final step ensures that only trustworthy and verified entities gain access to the tokenization market on Sonica.