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Building a Parallel Integration with Integrated Finance

Parallel Integration with Integrated Finance

This use case demonstrates how companies can use Integrated Finance (IF) for financial infrastructure—such as account issuing, payments, and card processing—while using Flagright for compliance and risk management. IF handles the orchestration of financial operations, and Flagright provides real-time AML checks, transaction monitoring, and risk scoring. The two systems operate independently but complement each other, allowing teams to build and scale products while meeting regulatory and compliance requirements.

Who is this for?

This integration approach is suitable for:

  • Neobanks and digital banking platforms offering multi-currency accounts or serving international users
  • Lending providers delivering personal loans, salary advances, or credit services
  • Platforms embedding financial services, including account creation, card issuing, and outbound/inbound payments
  • Investment and crypto platforms facilitating fiat on/off ramps with regulatory screening requirements

Platform

Benefits

Integrated Finance

Account and card issuing, payment orchestration, and transaction settlement.

Flagright

AML & fraud screening, transaction monitoring, real-time risk scoring, and AI-native case management

Step 1: Create a User

In this step, you'll onboard a customer into both Flagright and Integrated Finance (IF), establishing the foundational user record required for account provisioning, transaction orchestration, and compliance enforcement.

🔹 Flagright

Begin by registering the user in Flagright using the appropriate endpoint — POST /consumer/users for individuals or POST /business/users for corporate accounts. This allows you to trigger compliance workflows early in the onboarding process and determine whether the user passes your organization’s risk and screening requirements.

Flagright performs sanctions, PEP, and adverse media screening, identity profiling (KYC/KYB), and real-time risk scoring (KYC and CRA). Your compliance rules are also applied at this stage — for example, users from prohibited jurisdictions or with high-risk flags may be blocked automatically.

If not all attributes are available at the time of creation, you can enrich the user profile later using POST /events/consumer/user or POST /events/business/user.

🔹 Integrated Finance (IF)

Once the user has passed initial compliance evaluation in Flagright, create the corresponding user in IF using the POST /clients API. This record enables downstream infrastructure operations such as account issuing, card provisioning, and transaction processing.

  • For individuals, use the individual identity and profile objects
  • For businesses, use the corporate identity and profile objects

The user creation in IF should only proceed if no blocking compliance rules were triggered on the Flagright side — such as sanctions hits or disallowed countries — ensuring regulatory alignment across both systems.

Platform

Responsibility

Integrated Finance (IF)

Enables account creation, card issuing, and payment orchestration.

Flagright

Evaluates every user interaction in real time for fraud, AML, and regulatory risk.


Step 2: Issue a Wallet & Cards

Once the user is onboarded, the next step is to issue financial instruments — accounts and payment cards — via Integrated Finance (IF), and ensure those instruments are captured for compliance purposes in Flagright.

🔹 Integrated Finance (IF)

Leverage IF’s account issuing APIs to create wallets for your customers. These wallets allow users to hold and transact in currencies like EUR, USD, GBP, and more.

In addition, IF enables you to issue virtual or physical cards linked to these wallets for day-to-day payments, travel, or cross-border usage.

Typical flow:

  • Use POST /accounts to issue IBANs or local account numbers.
  • Use POST /cards to provision payment cards connected to the desired wallet.

With IF, each wallet is linked to a user and comes with metadata such as supported currency, network, and product tier.

🔹 Flagright

To maintain end-to-end compliance visibility, it’s important to associate wallet, card or other account details with the user profile in Flagright.

There are two ways to handle this:

  1. At the time of user creation If wallet or card details are already available, include them in the initial call to POST /consumer/users or POST /business/users.
  2. Post user creation If wallets and cards are issued after KYC or user onboarding, update the user profile using:
    • POST /events/consumer/user (for individuals)
    • POST /events/business/user (for businesses)

By linking wallet, card or other account data to user profiles in both systems:

  • IF handles the issuing and orchestration of accounts and cards.
  • Flagright uses this context to apply real-time AML, fraud, and compliance logic as transactions occur.

Step 3: Create Beneficiaries

Beneficiaries represent the recipients of funds — whether individuals or legal entities — to whom your customer may send money. As Integrated Finance (IF) requires beneficiaries and their bank accounts to be created for outbound transfers, the same beneficiaries should also be created in Flagright to ensure consistent identity mapping and to enable compliance checks on recipients.

🔹 Integrated Finance (IF)

In IF, beneficiaries are created using a dedicated endpoint:

POST /beneficiaries

IF supports the following beneficiary types:

  • Individual – A real person as the recipient of funds.
  • Corporate – A legal entity such as a business, charity, or NGO.
  • Unnamed – In cases where only a full name is known, and the entity type is not specified.

Creating a beneficiary in IF allows your platform to set up recipient accounts for payouts, route payments through supported payment networks (e.g., SEPA, SWIFT), and track recipient information for reconciliation, compliance, and reporting. Each beneficiary should have a unique identifier, which will also be used in the corresponding Flagright user record.

🔹 Flagright

In Flagright, beneficiaries are created using the same endpoints as primary users: POST /consumer/users for individual beneficiaries and POST /business/users for corporate beneficiaries. While the endpoint structure remains the same, the payload is typically lighter-weight. In line with the expected structure from IF, beneficiary records usually include the userId, full name, and basic contact details.

Creating beneficiaries in Flagright ensures that all counterparties are subject to AML checks, sanctions and PEP screening, and risk scoring. It enables behavioural and transactional monitoring to be applied not only to senders but also to receivers, maintaining a unified, auditable model of users and counterparties across the platform.



Step 4: Monitor & Review Transactions

Once customers are onboarded and wallets/accounts have been provisioned, the next step is to monitor all financial activity — such as top-ups, transfers, card payments, and withdrawals — to ensure full visibility, real-time decisioning, and compliance enforcement.

🔹 Integrated Finance (IF)

Transactions initiated by customers are processed through IF’s transaction orchestration layer, which handles:

  • Execution of payments across networks (FPS, SEPA, SWIFT, ACH)
  • Card-based purchases using IF-issued virtual or physical cards
  • Internal ledger updates and event notifications via webhooks

Typical transaction types include inbound transfers (e.g., salary top-ups, deposits), P2P transfers within your platform, outbound payments (e.g., supplier disbursements, refunds), or card purchases and merchant payments. Each transaction includes origin and destination payment details, amounts, currencies, timestamps, and metadata such as payment channel and references.

🔹 Flagright

To enforce compliance, each transaction is also sent to Flagright’s POST /transactions API. This call initiates real-time checks, including:

  • Sanctions, PEP, and adverse media screening
  • AML logic execution (e.g., geofencing, velocity checks, behavioral pattern matching)
  • Transaction and user risk scoring (TRS, CRA, KYC)
  • Enforcement of custom compliance rules

Regardless of the transaction type, Flagright responds similarly with a decision (ALLOW, FLAG, BLOCK, SUSPEND), details of rules triggered, and updated risk profiles of the users involved:


The result of the compliance check is returned to your system and would be used to update the transaction status within IF using the fields data.complianceCheck.status and data.complianceCheck.procedureResults.transaction-monitoring.result. This response determines whether the transaction is processed, held, or declined within IF.

Flagright Decision

Integrated Finance Compliance Check Result

ALLOW

all-passed, hard-stop-accepted (if SUSPEND is approved)

FLAG

soft-stop

SUSPEND

hard-stop

BLOCK

hard-stop-rejected

If a transaction is suspended by Flagright, it remains in a pending state within IF until a resolution is provided. Flagright’s AI-native case management system enables compliance teams to review the suspended transaction, assess relevant context, and determine an appropriate outcome. Once the case is resolved, Flagright sends a webhook to your system with the final decision. Your system then updates the transaction status in IF accordingly—either releasing the transaction for processing or permanently blocking it based on the compliance outcome.

For sample payloads for each step please check the docs HERE


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