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Enhanced Due Diligence (EDD) is triggered when an identity is deemed high risk based on Paxos’s risk rating methodology. This can occur during onboarding, or during the lifecycle of an active identity — for example, if identity information changes in a way that impacts risk rating, or if suspicious transaction patterns occur on the account. When an identity enters the EDD process, you are required to collect documentary evidence supporting the initial KYC information provided. You can handle EDD collection using a webhook-based or polling-based approach, leveraging Paxos Webhooks, the Events API, and the Document Upload API.

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Webhook-based Approach

Events

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➊ Consume Documents Required Events

Setup a Webhook Consumer to receive identity.documents_required events for your end users.

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➋ Fetch Required Documents

Call Get Event to fetch the event’s identity_documents_required object, which will allow you to understand which documents are required.

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➌ Upload the Required Documents

For the event’s associated identity_id, call Document Upload to upload the required documents, either synchronously if you already have the documents, or asynchronously if you need to reach back out to your customer for them to provide.

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➍ Wait for Approval or Denial

This will be followed by an identity.approved or identity.denied event based on the onboarding decision for that end user (this might take up to 1 full business day to complete).

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Polling-based Approach

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➊ Poll for Documents Required Events

Poll List Events, offsetting the created_at.gt filter for each subsequent poll, fetching all identity.documents_required events.
Keep track of the Event IDs you’ve processed to ensure idempotent event handling.

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➋ Upload the Required Documents

For the event’s associated identity_id, call Document Upload to upload the required documents, either synchronously if you already have the documents, or asynchronously if you need to reach back out to your customer for them to provide.