KYC

Problem Statement - Under new legislative requirements passed into law in Australia in 2018, all businesses providing exchange services into digital currencies such as Bitcoin need to be registered with AUSTRAC and need to complete due diligance with respect to AM/CT risk and to complete certain KYC checks depending on the above risks.

By implementing the following steps, we provide a way for a user to complete the KYC process once and have this verification available to other service providers in the Digital Exchange Service industry.

In order of this initial verification attestation to be valuable to other service providers, it must cover all of the checks required under Australian legislation. Initially this will be to complete 100 Points of Identification and a PEP check. Other verifications can be added at leter stages as required.

An entity will also have to be registered with AUSTRAC as the Designated Business Group (DBG) in order for other entities to use the verification undertaken by the DBG.

Abstract

Using uPort or other wallets and ERC780 contracts to make portable KYC attestations. Users will be able to verify their idenity once, use many across financial services. This demo is on the Rinkeby network.

This code will enable white label KYC portals to be deployed.

There is provision in the existing legislative framework for this type of co-ordinated KYC approach to be undertaken. http://www.austrac.gov.au/chapter-3-designated-business-groups#what

Process

The process to add a new user to the KYC smart contract is:

1. New users visits the portal https://id.blockchainaustralia.org
2. Complete an online form
3. The website is configured to use our KYC vendor RapidID - https://rapidid.com.au/home
4. A call to RapidID's REST API is posted
5. If verified, the data is hashed and submitted to the Ethereum blockchain

To verify a users 100 points of ID, they are asked to sign a message from the private key that holds their attestations.

1. The exchange website generates a unique message for that user. Eg I Lucas Cullen, am the owner of the address 0xa25Fe077D33F93816ad06A4F7dCE2f3808D0108529-08-2018
2. User generates the signed message from a wallet or service, such as https://www.myetherwallet.com/signmsg.html
3. If the signature is valid, the exchange can assert the user is correct

{
  "address": "0xa25fe077d33f93816ad06a4f7dce2f3808d01085",
  "msg": "I Lucas Cullen, am the owner of the address 0xa25Fe077D33F93816ad06A4F7dCE2f3808D0108529-08-2018",
  "sig": "0xad44f6f7d4cc87859437734546df99baafe343dac71452aea08aea7beaf754c97880513568163c28bccfca135a4e100bbc6c3d3a663737b31506d2f9f3fe34901b",
  "version": "3",
  "signer": "MEW"
}

Contracts

There is one smart contract.

1. The KYC proxy that implements business logic functions, such as "points value"

Claim types

Based on the 100 Point ID check Australia.

Key	Class	Document Type	Point Value	Key as Bytes32
BIRTHCERTIFICATE	Primary	Birth Certificate	70	0x42495254484345525449464943415445
PASSPORT	Primary	Passport	70	0x50415353504f52540a
DRIVERSLICENCE	Secondary	Driver’s Licence	40	0x445249564552534c4943454e4345
RESIDENTALCOUNTRY	NA	Country of Residence	0	0x5245534944454e54414c434f554e545259

Classes represented in the smart contract as an enum

enum Class {
    Primary,
    Secondary
}

Once documents have been certified, their Key and the hash of the JSON object are added to the users public key.

struct Document {
	Key,
	Hash,
	Date,
	Verified
}

KYC contract

KYC contracts will determine the users KYC state, based on local laws. These will be deployed from parties, such as Blockchain Australia. Finanical services will call these top level contracts to determine their users KYC status.

Document taxonomy

Primary and secondary documents are represented as JSON in the following formats. The hash of the document is then added to the ERC780 register contract.

{ 'BIRTHCERTIFICATE': '0x00' }

BIRTHCERTIFICATE

| Key | Eg Value | | --- | --- | --- | | Key | BIRTHCERTIFICATE | | Name | JOHN DOE | | Issued | 2018-01-01 |

{
    Key: 'BIRTHCERTIFICATE',
    Name: 'JOHN DOE',
    Issued: '2018-01-01'
    Documents: [

    ]
}

{
	BirthDate: '2005-08-21',
	FamilyName: 'Smith',
	GivenName: 'Larry',
	RegistrationState: 'NSW',
	RegistrationDate: '2005-08-27',
	RegistrationYear: '2005',
	RegistrationNumber: '500156',
	CertificateNumber: '1758461',
	DatePrinted: '2012-07-27'
}

DRIVERSLICENCE

{
	BirthDate: '1985-02-08',
	FamilyName: 'Lee',
	GivenName: 'Mary',
	LicenceNumber: '94977000',
	StateOfIssue: 'ACT',
    Country: 'AUS'
}

Flattening the object

{\"uPortAddress\":null,\"CountryCode\":\"AUS\",\"Key\":\"DRIVERSLICENCE\",\"BirthDate\":\"1985-02-08\",\"GivenName\":\"Mary\",\"FamilyName\":\"Lee\",\"LicenceNumber\":\"94977000\",\"StateOfIssue\":\"ACT\"}

Eg SHA-256 hash 0xa9dc32cc4b5416158dabefae23c8c6bd000841755a58e4c29e920af2705df604

Participants

KYC Contract Owners

Name	Public Key	Url
Blockchain Australia	0xa25Fe077D33F93816ad06A4F7dCE2f3808D01085	https://blockchainaustralia.org/kyc
ConsenSys	0x00

Validating 100 points

The "100" points proxy contract will iterate through the underling claims contact 0xc9ed21ffcc88a5072454c43bdfdbbe3430888b19. Using the key and points values from the above table, will then aggrate the total.

contract Points {
    
}

Test keys

Vendor	Private Key	Public Key
"Blockchain Australia"	0x3b3617c923fc5d7ea2aa1fc10d98e5b15cf1ade7b463c2dc929a1d2498137472	0xa25Fe077D33F93816ad06A4F7dCE2f3808D01085

References

ERC 780 specs ethereum/EIPs#780

First iteration of this is now available at uport-project/ethereum-claims-registry! It's also deployed to the following addresses: Rinkeby (id: 4) 0xc9ed21ffcc88a5072454c43bdfdbbe3430888b19

https://rinkeby.etherscan.io/address/0xc9ed21ffcc88a5072454c43bdfdbbe3430888b19 https://github.com/uport-project/ethereum-claims-registry

JSON https://raw.githubusercontent.com/uport-project/ethereum-claims-registry/master/build/contracts/EthereumClaimsRegistry.json

100 Point ID check Australia https://www.homeaffairs.gov.au/Licensing/Documents/100-points-identification-guidelines.pdf

uPort App Public Key 0x04b9d33dbc805cbc574b849d6f55e5022a5d07f4df46e6001d9bfb08b306d7a62ac3ca37ffa70abac019be6ab2ffb3db7045e63b755e65d9b73a6438531b75e712

Address 2ofGDsP2Rb51Bt76jVjSzresYwxgKcqyGbs or 0x94D61685D2B7b656C38e7bedAca4f5743d1362c4

Azure web app https://kyc-token.azurewebsites.net/

Deployment creds lucascullen Test1234

ISO 3166-1 Country codes