KYC/AML and OFAC
Fabrica is committed to providing a safe environment for its users, property owners, and the market generally. We take seriously our position as a service provider empowering a new level of commerce for real property.
OFAC Requirements
The Office of Foreign Asset Control prohibits transactions with certain individuals and with individuals in certain countries. Fabrica and its users must adhere strictly to OFAC prohibitions on transactions through restricted wallet lists and ID checks.
Our Approach to KYC/AML
Anti-money laundering (AML) laws require financial institutions to implement controls and reporting to stop money laundering. Know Your Customer (KYC) rules are an AML practice requiring sufficient diligence on customer identity.
Fabrica operates in an industry subject to strict scrutiny around fraud, and applies a KYC/AML policy that focuses identity verification on the critical touchpoints below. Which specific legal requirements apply depends on the entity, the service and the jurisdiction; this page describes Fabrica's procedures, not a legal classification.
Identity Verification Touchpoints
Identity verification occurs primarily at two key points in the property lifecycle: when a property is added and when it is removed (the moments title moves into or out of the legal wrapper).
Adding a Property: When a user is loading a property they own individually, identity verification is accomplished via the notary. Fabrica's use of a remote online notary system creates an independent identity verification step to reduce the risk of fraud.
Transfer: In some counties, transfer notifications are required on transfers not involving a recorded deed. In all counties, an owner benefits from being recognized as the beneficial owner of the trust for receipt of property tax information. Identity checks help reduce the risk of impersonation, though they cannot rule it out. Property checks give transactors information about a property's ownership and transfer history; they are a starting point for your own research, not a title search or title insurance.
Removing a Property: The notary acts as the identity verification in the process of deeding the property out of the trust to the owner.
The platform used for remote online notarization implements several advanced technologies to ensure proper identity verification.
Entity Verification
When an entity (rather than an individual) is the property owner, Fabrica gathers additional identity verification and entity ownership information to prevent fraud and to meet FinCEN real estate reporting requirements where they apply.
Key Regulatory Considerations
Fabrica's regulatory approach includes:
- State Compliance: Adherence to state-specific real estate and title transfer regulations
- KYC/AML Protocols: Implementation of Know Your Customer and Anti-Money Laundering procedures as described above
- Ongoing Review: Continuous legal review to ensure compliance with evolving digital asset and real estate laws
For more details on legal structures, see the Legal Wrappers section. For title verification procedures, see the Property Lifecycle documentation.
Updated 8 days ago