Accounts progress through a series of lifecycle states from creation to closure. These states reflect the current operational status of the account and determine whether it can be used for transactions.

An account is initially created in an inactive state and becomes operational only after the required verification and authorization checks are completed.

Create Account
(Status: INACTIVE)
        │
        ▼
Verification & Compliance Checks
(OFAC, CIP, SPAA linked)
        │
        ├──────────────► Verification Failed
        │                   │
        │                   ▼
        │                BLOCKED
        │
        ▼
Verification Successful
        │
        ▼
ACTIVE
        │
        ├──────────────► Customer Cancelled / Account Closure Requested
        │                   │
        │                   ▼
        │            CLOSURE_INITIATED
        │                   │
        │                   ▼
        │        Pending Transactions Completed
        │        Remaining Balance Transferred
        │                   │
        │                   ▼
        │                 CLOSED

//To remove the above code, after approval

Account Statuses

Status	Description
INACTIVE	Default status when an account is created. The account cannot be used until required verification checks and agreements are completed.
ACTIVE	The account becomes operational once verification checks and required agreements are completed successfully.
BLOCKED	The account is restricted and cannot perform transactions. This status may occur due to failed compliance checks (such as OFAC or CIP verification), risk or compliance review, or if the account enters a negative balance state.
CLOSURE_INITIATED	The account has entered the closure process. During this period, the system completes pending transactions and prepares the account for final closure.
CLOSED	The account has been permanently closed after the closure process is completed and any remaining balance has been transferred out.

Common Reasons an Account Remains Inactive

An account may remain INACTIVE if the required onboarding, verification, or documentation requirements are not fulfilled. Common reasons include:

Reason	Description
SPAA document not submitted	For accounts where `isCustomerOwned = true`, the SPAA authorization document must be submitted and linked to the account for review. Until the document is provided and processed, the account remains INACTIVE.
Customer verification not completed	Accounts where `isCustomerOwned = false` become active only after successful OFAC verification of the customer. If the verification is incomplete or pending, the account will not be activated.
Customer verification failed	If OFAC or CIP verification fails, the account will not be activated and may transition to BLOCKED status.
Required customer information missing	When creating accounts with `isCustomerOwned = true`, the system requires certain customer fields. If these fields are missing, the account creation or activation will fail. Examples include: Individual customers: `firstName`, `lastName`, `ssn`, `dob`, `mailingAddress`, `mobilePhone`, `email` Business customers: `legalName`, `ein`, `stateOfIncorporation`, `dateOfIncorporation`, `doingBusinessAs`, `phone`, `email`, `businessCategory`, and `beneficialOwner` details.
Compliance documentation pending review	Even if an account is created successfully, it may remain INACTIVE while required compliance documents are under review.