> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tracefinance.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Beneficiaries

> Sanctions and Travel Rule screening Trace Finance runs on payout recipients, and what the customer keeps responsibility for.

## Overview

Beneficiaries are the end-users your platform pays out to. Each payment instruction registered on a beneficiary is screened before it can be used in a withdrawal: a Travel Rule and sanctions check on the recipient and the payment instrument. Trace Finance does not onboard the beneficiary as a customer — the screening is a per-instruction control on outbound transfers.

For step-by-step instructions on registering a beneficiary, see the [Register a beneficiary](/journeys/register-beneficiary) journey.

## Details

### What gets screened

When a payment instruction is created, Trace Finance runs an automated screening tuned to the rail.

* **Identity screening** on the entity's tax ID, full name (or legal name for companies), and address country against sanctions and PEP lists.
* **Payment-instrument verification** matched to the rail:
  * **PIX** — the dict key must resolve in the PIX directory before the instruction is accepted as approved.
  * **Crypto** — the wallet address is screened against blocklists and risk indicators, and the Travel Rule data required for VASP-to-VASP transfers is captured. A custody attestation document is required for the payment instruction — attach it inline when the beneficiary is created, or afterwards with [Upload a beneficiary document](/api-reference/fx-payment/beneficiaries/submit-beneficiary-document).

The first payment instruction on a new beneficiary triggers the full screening; subsequent instructions on the same beneficiary go through a reduced check focused on the new payment instrument.

### What stays on your side

Trace Finance screens the data you submit — it does not verify the underlying end-user. You are expected to:

* Verify the identity of every end-user before they receive payouts through Trace Finance.
* Maintain your own end-user identity files (identity documents, address proof, source-of-funds where applicable) in line with the regulators that apply to your business.
* Ensure the entity data submitted per beneficiary matches what you collected — Travel Rule transmission is only meaningful when the originator and beneficiary data are accurate.
* Apply your own internal limits and risk-tiers. Trace Finance's screening is the rail-side gate, not a substitute for your platform's customer-due-diligence program.

If your business operates under a regulated regime that requires Trace Finance to participate in the customer review (for example, certain BaaS arrangements), reach out to Trace Finance's compliance team — those arrangements are negotiated separately.

## Related

* [Register a beneficiary](/journeys/register-beneficiary) — step-by-step procedure for submitting beneficiaries and payment instructions.
* [Testing in sandbox](/guides/testing-in-sandbox) — magic values to simulate rejection and pending outcomes during homologation.
* [Withdraw](/journeys/withdrawal) — end-to-end payout flow, including where this screening sits in the lifecycle.