Skip to main content

​
Overview

Beneficiaries are the end-users your platform pays out to. Each payment instruction registered on a beneficiary is screened before it can be used in a withdrawal: a Travel Rule and sanctions check on the recipient and the payment instrument. Trace Finance does not onboard the beneficiary as a customer — the screening is a per-instruction control on outbound transfers. For step-by-step instructions on registering a beneficiary, see the Register a beneficiary journey.

​
Details

​
What gets screened

When a payment instruction is created, Trace Finance runs an automated screening tuned to the rail.
  • Identity screening on the entity’s tax ID, full name (or legal name for companies), and address country against sanctions and PEP lists.
  • Payment-instrument verification matched to the rail:
    • PIX — the dict key must resolve in the PIX directory before the instruction is accepted as approved.
    • Crypto — the wallet address is screened against blocklists and risk indicators, and the Travel Rule data required for VASP-to-VASP transfers is captured.
The first payment instruction on a new beneficiary triggers the full screening; subsequent instructions on the same beneficiary go through a reduced check focused on the new payment instrument.

​
What stays on your side

Trace Finance screens the data you submit — it does not verify the underlying end-user. You are expected to:
  • Verify the identity of every end-user before they receive payouts through Trace Finance.
  • Maintain your own end-user identity files (identity documents, address proof, source-of-funds where applicable) in line with the regulators that apply to your business.
  • Ensure the entity data submitted per beneficiary matches what you collected — Travel Rule transmission is only meaningful when the originator and beneficiary data are accurate.
  • Apply your own internal limits and risk-tiers. Trace Finance’s screening is the rail-side gate, not a substitute for your platform’s customer-due-diligence program.
If your business operates under a regulated regime that requires Trace Finance to participate in the customer review (for example, certain BaaS arrangements), reach out to Trace Finance’s compliance team — those arrangements are negotiated separately.
  • Register a beneficiary — step-by-step procedure for submitting beneficiaries and payment instructions.
  • Testing in sandbox — magic values to simulate rejection and pending outcomes during homologation.
  • Withdraw — end-to-end payout flow, including where this screening sits in the lifecycle.