Busha, like other financial institutions, operates under strict regulatory requirements designed to combat financial crime and ensure a secure financial ecosystem. These requirements mandate that we verify the identity of all our customers, whether they are individuals or businesses.

Regulatory Pillars Copied

• Anti-Money Laundering (AML) Regulations: These laws are designed to prevent the use of financial systems for illicit activities like money laundering, which involves disguising illegally obtained funds as legitimate income.

• Know Your Customer (KYC) Requirements: KYC is a critical part of AML, requiring us to identify and verify the identity of our customers. This helps us understand who we are doing business with and assess potential risks.

• Counter-Terrorism Financing (CTF) Laws: These laws aim to disrupt the flow of funds to terrorist organizations.

• Local Financial Regulations: In addition to international standards, Busha adheres to specific financial regulations in Nigeria and Kenya, where we operate.

Impact on Your Transactions Copied

These regulations directly influence how you interact with Busha. To ensure compliance and the security of our platform:

• Mandatory Verification: All customers must undergo and pass the verification process before they can conduct any transactions.

• Document Submission: Providing the required identification and business documents is not optional; it's a mandatory step in activating your account.

• Transaction Limits: Your verification status determines the transaction limits applied to your account. Fully verified accounts typically have higher limits.

• Account Activation: If verification fails or documents are not submitted, your account cannot be fully activated for transactions.

KYC Requirements for Individual Customers Copied

To verify individual customers, Busha collects specific identity documents and performs a proof-of-identity step. The exact requirements vary slightly by country to align with local regulations and common identification methods.

Required Documents by Country

• Nigeria:

  • Primary ID: You can provide one of the following: a National Identification Number (NIN) slip, a national passport, or a driver's license.

  • Proof of Identity: A selfie video is required to confirm that the person providing the documents is indeed the account holder.

• Kenya:

  • Primary ID: A National ID card is required.

  • Proof of Identity: Similar to Nigeria, a selfie video is needed for proof of identity.

Technical Requirements for Document Submission Copied

When submitting your documents, please ensure they meet the following technical specifications to facilitate a smooth verification process:

• Format: All files (images and videos) must be submitted in Base64 format.

• File Size: Each file should not exceed 4MB.

• Clarity (Images): Photos of your primary ID must be clear, well-lit, and easily readable with no glare or obstructions.

• Clarity (Videos): Your selfie video should clearly show your facial features, allowing for easy identification.

The Verification Process Copied

The individual customer verification process follows a clear sequence:

1. Document Provision: You submit the required primary ID and selfie video through the Busha platform.

2. Document Review: Our compliance team reviews the submitted documents for authenticity, validity, and adherence to technical requirements.

3. Identity Verification: Once the documents are verified, your identity is confirmed.

4. Account Activation: Upon successful identity verification, your account is fully activated, allowing you to conduct transactions within your designated limits.

KYC Requirements for Business Customers (KYB - Know Your Business) Copied

For businesses, the verification process, often referred to as Know Your Business (KYB), is more comprehensive due to the complexity of business structures and ownership. This ensures that Busha understands the nature of the business, its ownership, and its operational legitimacy.

Required Documents for All Businesses Copied

Regardless of the business entity type, the following foundational documents are generally required:

• Certificate of Incorporation: Legal proof that the business is officially registered.

• Corporate Registry Extract: A document from the relevant corporate registry detailing key information about the business (e.g., directors, registered address).

• Memorandum of Association Articles (Memart): A legal document outlining the company's objectives and how it will achieve them.

• Corporate Structure Chart: A visual representation of the ownership and management hierarchy of the business.

• Board Resolution: Official minutes or a statement from the company's board of directors authorizing specific actions or individuals.

• Anti-Money Laundering Policy: The business's internal policy for preventing money laundering and other financial crimes.

• Regulatory Licenses: Any specific licenses required for the business to operate in its industry (e.g., financial services license, trading license).

• Proof of Wealth: Documentation demonstrating the source of the business's funds.

• Proof of Address: Documents confirming the official registered address of the business.

Document Requirements for Business Submissions Copied

Similar to individual submissions, business documents must adhere to specific technical standards:

• Format: All files must be in Base64 format.

• File Size: The maximum file size per document is 4MB.

• Validity: All submitted documents must be official, current, and not expired.

The Verification Process Copied

The business customer verification process mirrors the individual process but with a focus on comprehensive business information:

1. Document Provision: The business provides all the required corporate and legal documents.

2. Document Review: Our compliance team meticulously reviews each document for authenticity, completeness, and adherence to legal standards.

3. Identity Verification: Once the business's identity and its key stakeholders are verified, the KYB process is completed.

4. Account Activation: Upon successful verification, the business account is activated, enabling it to conduct transactions on the Busha platform.

Understanding Business Entity Types Copied

The specific onboarding requirements for businesses can vary significantly based on their legal structure. Understanding these different entity types is crucial for preparing the correct documentation.

Common Business Entity Types

• Sole Proprietorships:

  • Definition: Businesses owned and run by a single individual.

  • Liability: The owner has unlimited personal liability for business debts.

  • Simplicity: This is typically the simplest business structure to set up.

  • Required Documents: Business License, Trade Name Registration (DBA - "Doing Business As"), Tax registration documents.

• Partnerships:

  • General Partnerships (GP):

    • Definition: Two or more individuals share ownership and management responsibilities.

    • Liability: All partners have unlimited personal liability.

    • Required Documents: Partnership Agreement, Business License listing all partners, Trade Name Registration (DBA) listing all partners.

  • Limited Partnerships (LP):

    • Definition: Include both general partners (with unlimited liability and management control) and limited partners (with limited liability and no management control).

    • Required Documents: Certificate of Limited Partnership (filed with government), Limited Partnership Agreement, Registration documents.

  • Limited Liability Partnerships (LLP):

    • Definition: Partners have limited personal liability, typically protecting them from the actions of other partners. Common in professional services.

    • Required Documents: Certificate of Limited Liability Partnership, LLP Agreement, Registration documents.

• Corporations:

  • Definition: A separate legal entity from its owners (shareholders).

  • Liability: Shareholders have limited liability, meaning their personal assets are generally protected from business debts.

  • Required Documents: Articles of Incorporation (filed with government), Certificate of Incorporation, Corporate Bylaws, Shareholder Agreements.

• Limited Liability Companies (LLC):

  • Definition: A hybrid structure combining the limited liability of a corporation with the pass-through taxation and flexibility of a partnership.

  • Liability: Members have limited liability.

  • Management: Offers a flexible management structure.

  • Required Documents: Articles of Organization (filed with government), Operating Agreement, Membership Certificates, Registration documents.

• Nonprofit Organizations:

  • Definition: Established for charitable, educational, religious, or social purposes, rather than for profit.

  • Tax Status: Can apply for tax-exempt status.

  • Ownership: No individual beneficial shareholders.

  • Required Documents: Articles of Incorporation, Certificate of Incorporation, Tax-exempt status application (if applicable), Bylaws.

• Foundations:

  • Definition: Entities established to hold and manage assets for charitable or philanthropic purposes.

  • Governance: Governed by a board of trustees or directors.

  • Ownership: No individual beneficial shareholders.

  • Required Documents: Articles of Incorporation, Certificate of Incorporation, Foundation Charter or Trust Deed, Board Resolutions.

• Trusts:

  • Definition: A legal arrangement where a trustee holds assets for the benefit of beneficiaries.

  • Management: Managed according to the specific terms outlined in a trust agreement.

  • Variety: Various types exist for different purposes (e.g., living trusts, testamentary trusts).

  • Required Documents: Trust Deed (or Trust Agreement), Certificate of Trust, Notarized Trustee's Affidavit, Trust registration documents.