> For the complete documentation index, see [llms.txt](https://docs.useshadowpay.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.useshadowpay.com/compliance/kyc-and-travel-rule.md).

# KYC & Travel Rule

Details on identity verification and cross-border compliance mechanics for ShadowPay accounts.

***

## KYC verification process

Identity verification happens once, at account creation, through ShadowPay's KYC provider (Persona or an equivalent regulated provider).

1. Submit a photo of a government-issued ID
2. Complete a liveness check (a short selfie video, matched against the ID photo)
3. Verification typically completes within minutes; some cases route to manual review

Enhanced verification, required for higher transaction limits or Business accounts, adds:

* Proof of address (a recent utility bill or bank statement)
* For Business accounts, standard KYB documentation: incorporation records and beneficial ownership information

***

## Verification tiers and limits

| Tier     | Daily limit        | Requirements                                       |
| -------- | ------------------ | -------------------------------------------------- |
| Basic    | Up to $2,500       | Government ID, liveness check                      |
| Enhanced | Up to $25,000      | Basic tier plus proof of address                   |
| Business | Custom, negotiated | KYB documentation, beneficial ownership disclosure |

Limits above the Business tier are handled case by case and typically involve direct compliance review.

***

## Travel Rule mechanics

The Travel Rule requires financial institutions to share originator and beneficiary information for transfers above a jurisdictional threshold ($3,000 in the US). ShadowPay handles this through:

1. **Counterparty screening:** before a transfer above the threshold settles, the recipient's address is screened against sanctions and risk lists via Chainalysis or TRM Labs.
2. **Selective disclosure exchange:** if the receiving institution is also a regulated entity requiring Travel Rule data, ShadowPay exchanges the required originator and beneficiary information directly with that institution's compliance system, not with the public chain.
3. **Encrypted amount, disclosed identity:** the transfer amount itself remains encrypted on-chain throughout this process. Travel Rule compliance concerns identity information, not transaction amounts, and ShadowPay treats those as separable.

***

## What triggers additional review

* Transfers above your verification tier's limit
* Transfers to or from an address flagged by sanctions or risk screening
* Patterns consistent with structuring (multiple transfers just under a reporting threshold)

Flagged transactions may be held pending manual compliance review. You'll be notified in-app if this happens to a transfer you've initiated.

***

## Next

* [Regulatory Framework](/compliance/regulatory-framework.md)
* [Selective Disclosure & Audit Export](/privacy-and-confidential-transfers/selective-disclosure.md)


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