Transfer Failed between two business

I’m new to Dwolla Integration in our application. Here is my below case where I’m trying to Send the fund from one Customer to the Another Customer. However, It is getting failed with the error to say as "Sender restricted."

Please find below process which we have implemented to setup the Customers and their Funding Source.

Client/User 1 Verified Business:

  • Create Verified Business with Controller Details if Business is not SOLE_PROPRIETORSHIP.

Client/User 2 Verified Business:

  • Create Verified Business with Controller Details if Business is not SOLE_PROPRIETORSHIP.

Both user is setup with only one and only one Funding Source which is verified too.

Both customer are showing as verified, Still, I’m Getting error

Hi @abhishekshah2905, It appears from the screenshot of the Dwolla Dashboard that the user you have set up has not yet certified beneficial ownership. It’s required for businesses that are not sole proprietorship to add Beneficial Owners and certify that the information they’ve submitted is complete and accurate (unless the business is exempt). If you call the certify ownership endpoint it should make the user eligible to send funds.

@spencer

Thank you very much for your quick response. I figured out the same thing and implemented it in my integration. However, Just would like to know about the adding Beneficial Owners. Does it really matter to add Beneficial Owners because what I just did to make it working by hitting the Certify Ownership endpoint.

So, Is it really matters to add Beneficial Owners?

Yes, it is a requirement passed down from the Financial Crimes Enforcement Network (FinCEN). FinCEN issued a rule under the Bank Secrecy Act in order to clarify and strengthen customer due diligence requirements. The customer due diligence rule adds a new requirement to identify and verify the beneficial owners of Dwolla’s partners and the beneficial owner of those partner’s users that are not natural persons.