What is KYC and STIR/SHAKEN? Why is this important?
Federal regulations, specifically Know Your Customer (KYC) and STIR/SHAKEN, are in place to prevent fraud and protect the integrity of communications systems. Here’s a breakdown of what these regulations do and how they protect you:
Regulatory Compliance (KYC & STIR/SHAKEN)
Know Your Customer (KYC):
The U.S. Federal Communications Commission (FCC) mandates KYC requirements to ensure we accurately identify and verify our users. This applies to all clients on our platform, whether operating in the U.S. or internationally. ClearlyIP uses government-issued ID verification and business verification to meet these obligations.
ID Verification: Prioritized because it only takes minutes. It confirms that the person or entity is legitimate and authorized to use the services.
Business Verification: Can take a few days, as it involves verifying business legitimacy through documentation such as FEIN (Federal Employer Identification Number) or other official records.
Once your initial vetting is completed by our team, you can begin using your services.
STIR/SHAKEN:
STIR/SHAKEN is a framework designed to prevent phone number spoofing and fraudulent calls. It requires all calls to be digitally signed, ensuring that the caller’s identity is validated. The recipient’s carrier verifies these signatures to confirm calls originate from a legitimate, verified source.
For this process to work, identity verification through KYC is essential. Without it, calls may be flagged as spam or rejected by carriers.
Why We Require Government ID Verification
Verifying your identity is a critical step in ClearlyIP’s compliance and security processes for several reasons:
Protection Against Fraud
Preventing Identity Theft:
By verifying your identity through KYC, we protect your personal or business information from fraudulent use, minimizing risks like identity theft or unauthorized credit card use.
Maintaining Network Integrity
Compliance with FCC and carrier regulations prevents disruptions for all ClearlyIP clients.
When all users follow the rules, it lowers the risk of disruptions caused by fraudulent use or bad behavior by others.
It also enhances call deliverability, reducing the chances of legitimate calls being labeled as spam or rejected by carriers.
Required Information for Verification
Before activating a voice services account, we need to collect the following information to comply with federal KYC regulations and enhance call security:
- Entity Type: LLC, Corporation, Partnership, Non-Profit, Sole Proprietorship, etc.
- Reseller Status: Indicate if you are reselling voice services to customers.
- FEIN or ID Number: Business Tax ID or equivalent identification number.
- Nature of Business: Brief description of your company’s operations (e.g., IT services, call center, healthcare, etc.).
- Planned Use of Services: How you plan to utilize our services (e.g., PBX, SIP Trunking, Contact Center, AI voice applications).
- Dialer or Telemarketing Plans: Specify if the service will be connected to an autodialer or robocalling platform.
- Owners (20% or more): Full name of any owner with at least 20% ownership.
- Website: Your company’s website.
- Phone Number: Main business contact number.
Why This Matters to You
These requirements may be new to some clients, but they benefit you in several ways:
Better Call Deliverability: By complying with STIR/SHAKEN, your calls are more likely to be recognized as legitimate by carriers and not marked as spam.
Improved Security: Protects your personal or business identity from fraudulent use.
Regulatory Compliance: Ensures your operations remain compliant with FCC regulations, avoiding potential penalties or service interruptions.
Following these processes ensures that your calls are trusted by recipients and helps maintain the integrity of the telecommunications network.
Additional Resources from the FCC
For more details about these regulations, you can review the official resources provided by the FCC:
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