CBN mandates tiered KYC for all fintech platforms. We break down exactly what's required at each tier and how to upgrade your account.
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KYC Tiers Explained: What Documents You Need at Each Level
Know Your Customer requirements exist for a straightforward reason — financial platforms need to verify who they are dealing with before moving funds on their behalf. But not every transaction carries the same risk, and not every user needs to go through the same level of scrutiny from day one.
KetaPay uses a tiered KYC structure, meaning verification requirements scale with transaction size and account activity. Here is what each level requires and why.
Tier 1 — Basic Access
Tier 1 is the entry point. It allows new users to get started quickly while still establishing a minimum level of identity.
At this level, KetaPay requires a valid phone number, a BVN (Bank Verification Number), and a basic profile with full legal name and date of birth. No document uploads are needed. The BVN lookup cross-references the information provided against existing bank records, giving enough confidence to support low-value transactions.
Tier 1 accounts have transaction limits in place. Large or high-frequency escrow activity is not available until higher tiers are completed.
Tier 2 — Standard Verification
Tier 2 unlocks the majority of KetaPay's escrow functionality. It is appropriate for individuals and small businesses conducting regular transactions of moderate value.
Document requirements at this level include a government-issued photo ID — a National ID card, voter's card, driver's licence, or international passport — along with a recent utility bill or bank statement as proof of address, dated within the last three months. A liveness check is also required, confirming the person submitting the documents matches the photo ID.
Verification at this level is typically completed within a few hours.
Tier 3 — Enhanced Due Diligence
Tier 3 applies to businesses, high-value accounts, and users whose transaction volumes exceed standard thresholds. It involves a more thorough review of both identity and the source of funds.
For individuals, requirements include everything from Tier 2 plus a Tax Identification Number and, in some cases, supporting documentation for the source of funds. For businesses, additional documents are required: a CAC registration certificate, the company's memorandum and articles of association, proof of business address, and valid ID for all directors and beneficial owners with a significant stake in the company.
Review timelines at this level depend on document completeness and may involve direct follow-up from KetaPay's compliance team.
A Few Things Worth Knowing
Documents must be clear, unaltered, and currently valid. Expired IDs will not be accepted regardless of tier. All submissions are encrypted and handled in line with applicable data protection regulations. KetaPay does not store raw document images longer than necessary for verification purposes.
If a submission is rejected, users receive a specific reason and can resubmit without losing their place in the process.
Conclusion
KYC tiers exist to balance access with responsibility. Lighter requirements at entry level mean businesses and individuals can start using KetaPay without unnecessary friction. Stricter requirements at higher levels mean that larger transactions are protected by a correspondingly thorough verification process. Understanding which tier applies to a given use case — and having the right documents ready — makes the process straightforward from the start.
