KYC / AML Compliance
Dualis Finance integrates identity verification and transaction screening to meet regulatory requirements for both retail and institutional participants. The compliance stack combines Sumsub for KYC/KYB verification and Chainalysis for transfer screening.
Compliance Overview
As an institutional-grade lending protocol on the Canton Network, Dualis operates in a regulatory environment that demands robust identity verification and anti-money laundering controls. The compliance architecture is designed to be proportional -- lighter requirements for retail users with limited access, and comprehensive verification for institutional participants with full protocol capabilities.
Sumsub KYC/KYB Integration
Dualis uses Sumsub as its identity verification provider. Sumsub handles document verification, liveness checks, and sanctions screening for both individual (KYC) and business (KYB) onboarding flows.
- Frontend widget: The Sumsub Web SDK is embedded directly in the Dualis frontend. Users complete identity verification within the application without being redirected to external sites. The widget handles document capture, selfie verification, and liveness detection.
- Backend webhooks: Sumsub sends verification results to the Dualis API via authenticated webhooks. The API processes these events to update user verification status, assign compliance tiers, and unlock protocol features based on verification level.
- Document types: Supported documents include government-issued ID (passport, national ID, driver's license), proof of address (utility bill, bank statement), and for KYB -- articles of incorporation, shareholder registry, and UBO declarations.
Chainalysis Transfer Screening
All transfers into and out of the Dualis protocol are screened using Chainalysis KYT (Know Your Transaction). This real-time screening service identifies transactions associated with sanctioned entities, darknet markets, ransomware, and other illicit activity.
- Inbound screening: Deposits are checked against Chainalysis risk scores before being credited to user accounts. High-risk transfers are flagged for manual review by the compliance team.
- Outbound screening: Withdrawals are screened against sanctions lists and known illicit addresses. Transfers to flagged addresses are blocked and reported.
- Continuous monitoring: Existing positions are periodically rescreened as Chainalysis updates its risk intelligence. Addresses that become associated with illicit activity after initial screening are flagged for review.
Compliance Tiers
Dualis implements a tiered compliance model that matches verification requirements to protocol access levels:
| Tier | Verification | Access | Limits |
|---|---|---|---|
| Retail Basic | Email + wallet connection | Supply only, crypto collateral | Capped supply amount per pool |
| Retail Verified | Sumsub KYC (ID + liveness) | Supply, borrow, all collateral types | Standard position limits |
| Institutional | Sumsub KYB + enhanced due diligence | Full protocol access including securities lending | Custom limits based on credit assessment |
| Institutional Prime | KYB + credit attestation + legal agreement | Under-collateralized lending, prime brokerage features | Negotiated limits with credit-tier-based parameters |
Dual-Track Architecture
The protocol's dual-track design separates retail and institutional access paths. Retail users can access basic supply functionality with minimal verification, while institutional features such as securities lending, under-collateralized borrowing, and higher position limits require comprehensive KYB and credit assessment.
This approach balances regulatory compliance with user accessibility. A retail user exploring DeFi lending on Canton can get started quickly, while an institutional treasury desk undergoes the thorough verification process their regulators expect.