Commercial Qualification & Compliance
1. Stage 1 — Commercial Qualification
Purpose: Establish mutual fit, define corridor scope, and agree on commercial terms before investing compliance and engineering resources.
Gate Criteria
- Signed NDA (mutual) covering technical architecture, pricing, and corridor data.
- Completed Partner Application Form capturing: entity legal name and jurisdiction, beneficial ownership structure (UBO), intended corridor(s) and estimated monthly volume, partner type(s) and intended role in SOL, existing licences held (payments, remittance, VDA, banking), and technical integration preference (API, SDK, or white-label).
- Preliminary commercial term sheet agreed (non-binding) covering fee structure, revenue share, volume commitments, and exclusivity (if applicable).
- Internal Ratio committee approval (BD + Risk) confirming strategic alignment, corridor priority, and risk appetite.
Deliverables
- Partner Profile Document (internal) with risk rating (Low / Medium / High) based on jurisdiction, entity type, and corridor complexity.
- Preliminary corridor economics model showing expected spread, fee split, and projected volume.
For LP Partners (additional)
- Liquidity Intent Class selection (Class A: FX-Only or Class B: Full Participation).
- Indicative deposit size and currency composition.
- Fee tier negotiation covering two dimensions: (1) LP reward multiplier (relative to standard 1.0× share, e.g., 0.3× for strategic issuers), and (2) swap fee overrides per corridor per transaction size tier (custom fixed fee, variable bips, and spread via partner_fee_tier_overrides).
Estimated Duration: 1–2 weeks
2. Stage 2 — Compliance & Due Diligence
Purpose: Verify the partner's legal standing, regulatory compliance, and risk profile before granting any system access.
2.1 KYB (Know Your Business) Requirements
All partner types must complete KYB verification. The depth scales with risk rating.
| Requirement | Standard | Enhanced | Strategic |
|---|---|---|---|
| Certificate of incorporation | Required | Required | Required |
| UBO disclosure (25%+ threshold) | Required | Required | Required |
| Director ID verification | Required | Required | Required |
| AML/CFT policy document | Required | Required | Required |
| Sanctions screening (OFAC, UN, EU) | Required | Required | Required |
| Licence verification (per jurisdiction) | If applicable | Required | Required |
| Financial statements (2 years) | Not required | Required | Required |
| Source of funds declaration | Not required | Required | Required |
| On-site / virtual due diligence visit | Not required | Case-by-case | Required |
| Reserve/backing audit (issuers only) | N/A | N/A | Required |
| Blockchain address screening (wallets) | If applicable | Required | Required |
Risk Rating Assignment
- Standard: Distribution partners, retail LP aggregators in low-risk jurisdictions (SG, JP, HK).
- Enhanced: On-Ramp/Off-Ramp partners, institutional LPs, RFQ counterparties, partners in medium-risk jurisdictions (ID, MY, TH).
- Strategic: Stablecoin issuers, Tier-1 bank partners, any partner with anticipated TVL > $1M or monthly volume > $10M.
2.2 Licensing & Regulatory Mapping
Each corridor requires specific licensing coverage. During onboarding, Ratio maps the partner's licence portfolio to the intended corridors.
| Corridor | On-Ramp Licence Needed | Off-Ramp Licence Needed | Regulatory Body |
|---|---|---|---|
| USD-IDR | US MSB / SG MPI + ID remittance | ID remittance / PSP licence | FinCEN / MAS / OJK (Bank Indonesia) |
| USD-SGD | US MSB / SG MPI | SG MPI / bank licence | FinCEN / MAS |
| MYR-IDR | MY EMI / remittance | ID remittance / PSP licence | BNM / OJK |
2.3 Jurisdiction-Specific Compliance Notes
- Indonesia (IDR corridor): Partners must comply with Bank Indonesia (BI) and OJK regulations on payment systems and digital financial assets. IDRX as a regulated stablecoin issuer provides corridor compliance anchor.
- Singapore (SGD corridor): Partners must hold or be exempt under MAS Payment Services Act 2019. Travel Rule compliance mandatory under FATF guidelines as implemented by MAS.
- Malaysia (MYR corridor): Partners must comply with BNM (Bank Negara Malaysia) digital currency and e-money regulations. MYRC issuer partnership provides regulatory alignment.
2.4 Ongoing Screening
- All partner entities, UBOs, directors, and authorised signatories screened against OFAC SDN, EU Consolidated, UN Security Council, and local APAC sanctions lists.
- Blockchain address screening via chain analytics tooling (e.g., Chainalysis, Elliptic, TRM Labs) for any wallet addresses to be whitelisted.
- Ongoing monitoring: rescreening triggered on entity change events, quarterly batch rescreening, and real-time transaction screening for on-chain interactions.
Estimated Duration: 2–4 weeks (Standard), 4–8 weeks (Enhanced/Strategic)