Virtual accounts lifecycle

Virtual Accounts follow a structured lifecycle from creation to closure. This document outlines the key stages and requirements for managing Virtual Accounts effectively.

Key Concepts

Account Types

Virtual Accounts are available in three types, each with different ownership implications:

• Reconciliation Accounts: Operate under your institution's name
• Payments on Behalf of (POBO): Operate under your customer's name for all transactions
• Collections on Behalf of (COBO): Operate under your customer's name for incoming transactions

Ultimate Beneficial Owner (UBO)

For POBO and COBO accounts, you must specify who the Ultimate Beneficial Owner(s) are before the account is used in order to fulfill regulatory requirements. Once set, the UBO information cannot be changed.

UBO Requirements

The following information must be maintained for each UBO:

• Full legal name (first name and last name)
• Complete business address (consisting of three address lines)
• Customer type classification (Private or Company)
• Customer identifier (your internal reference)
• Additional jurisdiction-specific requirements

Up to five UBOs can be registered for a single Virtual Account, each requiring their full name, reflecting complex ownership structures or shared control.

Note: The UBO information can only be set once for each Virtual Account, and must be provided before the account can process transactions.

UBO Status Tracking

The system maintains status tracking for UBO information for each Virtual Account:

• Missing: UBO details have not been provided
• Pending: UBO details are being processed
• Completed: UBO details have been successfully set
• Failed: UBO update encountered an error
• N/A: Account type does not require UBO details

Learn more about the UBO requirements, including field names, length and character requirements, in the Virtual Accounts Reference Data.

---

Lifecycle Stages

Virtual accounts follow a structured lifecycle from creation to closure. This document outlines the key stages and requirements for managing Virtual Accounts effectively.

1. Account Ordering

The account ordering process establishes the fundamental configuration of Virtual Accounts:

Account Type Selection

• Reconciliation accounts (operating under your institution's name)
• POBO accounts (full customer name representation)
• COBO accounts (customer name for collections)

Master Account Configuration
When ordering Virtual Accounts, you must specify their relationship with Master Accounts:

Note: If you have only one Master Account, it automatically becomes the default account.

Customer Details

• POBO and COBO accounts can be ordered with or without initial customer details
• Reconciliation accounts do not require customer details

The number of Virtual Accounts ordered and their configuration options can be specified in a single order, streamlining the setup process for multiple accounts.

2. Adding UBO information

You can add customer details to your Virtual Accounts after ordering. This can be done via API and the Client Portal, via file upload. The UBO information is used to identify who the the Virtual Account is assigned to.

Note: Some jurisdictions require customer details to be provided during the ordering process.

See the Ultimate Beneficial Owner section above for more details.

3. Account Closure

Account closure requires providing a reason code to document why the account is being closed. This can be done through both the UI and the API, per account or in bulk.

When you submit a closure request, the system initiates a processing workflow:

1. The closure request is queued for processing
2. A 15-minute delay allows the system to handle any pending payments
3. You can monitor the closure status via GET /api/v1/virtualAccounts/{virtualAccountNumber}/close/status
4. The closure status progresses through these states:
   • Pending: Initial state after request submission
   • Processed: Closure successfully completed
   • Failed: Closure encountered an error (contact us for assistance)

Once the closure status reaches Processed, the Virtual Account is officially closed. This is reflected in the status property returned by GET /api/v1/virtualAccounts, which changes from Active to InActive. The Virtual Account remains in Active state throughout the closure processing period.

For details on closure reason codes and requirements, see Virtual Accounts Reference.

Note that:

• The closure request affects all currencies linked to the Virtual Account
• You cannot close individual currency configurations
• You cannot reopen closed accounts
• You can close up to 1000 accounts at once