Being a regulated online broker, Deriv must abide by the strict KYC and AML laws set by the governments around the world. KYC or know your customer policy is necessary to always ensure the money is being paid to the correct person. AML is a set of rules regulating anti money laundering procedures. They require that that, for larger sums, the beneficiary of the payment is always well known. This makes things a bit complicated for the user who needs to prepare several documents. We explain everything about Deriv verification so it can go as smooth as possible for our readers.
Know Your Customer in South Africa – Overview
Our research shows that any customer joining a brokerage firm typically completes an Identification Verification or Know Your Customer (KYC) procedure.
To create a new trading account and begin trading, traders must provide certain personal information to the brokerage. Limits may apply to the account if this is not done, and problems with deposits and withdrawals may occur.
A passport or national ID card showing the client’s real name, date of birth, and place of residence, a recent utility bill showing the client’s home address and phone number, email address, sample signatures, and other financial information is typically required to complete KYC.
Furthermore, other information, including the client’s reason for opening a trading account, the source of funds, etc., could be requested as part of the KYC process for foreign exchange.
Deriv Account Verification
Do I need to Verify my ID to trade on Deriv?
We found that Deriv verification was not mandatory when we registered a live account with the broker, only when requested by Deriv and when we wanted access to higher maximum withdrawals and other features.
According to the Deriv verification policy, full verification (which includes Proof of Address and Identity) is required under the following circumstances:
- According to Anti-Money Laundering Laws and per the Financial Sector Conduct Authority (FSCA) of South Africa.
- If you have previously used a few Credit/Debit Cards or share a payment method with other users.
- If you withdraw using crypto wallets when your initial deposit was not transferred from such.
- When you have reached the maximum 10,000 USD (or ZAR equivalent) in accumulative withdrawals.
- If you want to create a MetaTrader 5 (MT5) Account in a certain area under specific regulations.
- If you want to deposit large amounts using a Credit or Debit Card (10,000 USD+).
Therefore, we could trade forex, Synthetic Indices, and cryptocurrency and withdraw up to 10,000 USD before Deriv prompted for full verification. However, without verification, we could not sign up to become an affiliate or a payment agent or use the DP2P app.
Why is Deriv Proof of Identity Important?
Verifying ID with Deriv is imperative as it guarantees that the client applying for a live account is whom they claim to be.
Also known as the “KYC” process, Deriv verification documents prevent criminals from conducting transactions on behalf of another person, stealing the identities of others, and committing fraud. KYC not only protects Deriv clients but also:
- Provides a transparent and safe trading environment.
- Helps Deriv avoid fines.
- Ensures that Deriv complies with regulations.
- Improves Deriv’s overall reputation.
- Ensures that data privacy is guaranteed.
How to verify Proof of Identity on Deriv
We followed these simple steps to complete the Deriv proof of identity process:
- We went onto the Deriv website and logged into our Deriv client portal to access our trading account.
- Next, we clicked on the Menu (top left corner of the page) and clicked on the “Account Settings” tab and scrolled down to “Verification.”
- We clicked on “Proof of Identity” and selected the identity document to upload.
- In this case, we uploaded a government-issued ID card in PDF format, with the front and back of the card displayed on a one-page document.
- Next, we submitted the proof of identity document and waited one business day for our account to be verified. However, our research indicates that, according to Deriv, verification can take between one to three business days.
Furthermore, some notes when clients upload their Proof of Identity include:
- Ensure that your document is supported, and that the information is clearly readable.
- Ensure that your personal details (on your Deriv Account) are updated and match the document.
- Ensure that the document format is JPG, JGPE, GIF, PNG, or PDF.
Documents Required for South Africans to withdraw from Deriv
The documents required for the Deriv proof of identity process are either of the following:
- A valid, government-issued ID Card or Green ID Book.
- A valid South African Driver’s License.
- A valid Passport.
Furthermore, if you use your government-issued ID card or Driver’s license, ensure that you upload a document or image that displays the front and back of the card.
Deriv ID Verification FAQ
Does Deriv need verification?
No, you can start trading on Deriv without verification. However, you are limited in terms of the trading instruments you can access, the maximum withdrawals you can request, and the features you can access.
How long does Deriv verification take?
It took one business day for Deriv to verify the trading account we set up. However, verification can take up to three business days.
Which documents must I submit to verify my Deriv Account?
We found that South Africans can submit a national ID, Driver’s License, or Passport for account verification. However, note that the document must be valid, and your Deriv account details must match the information on your Proof of Identity.
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