diff --git a/src/exchange/taler-exchange-httpd_reserves_close.c b/src/exchange/taler-exchange-httpd_reserves_close.c
index 6ace75fe6..29c08ff72 100644
--- a/src/exchange/taler-exchange-httpd_reserves_close.c
+++ b/src/exchange/taler-exchange-httpd_reserves_close.c
@@ -178,14 +178,13 @@ reserve_close_transaction (void *cls,
 {
   struct ReserveCloseContext *rcc = cls;
   enum GNUNET_DB_QueryStatus qs;
-  struct TALER_Amount balance;
   char *payto_uri = NULL;
   const struct TALER_WireFeeSet *wf;
 
   qs = TEH_plugin->select_reserve_close_info (
     TEH_plugin->cls,
     rcc->reserve_pub,
-    &balance,
+    &rcc->balance,
     &payto_uri);
   switch (qs)
   {
@@ -226,6 +225,9 @@ reserve_close_transaction (void *cls,
          (0 != strcmp (payto_uri,
                        rcc->payto_uri)) ) )
   {
+    /* KYC check may be needed: we're not returning
+       the money to the account that funded the reserve
+       in the first place. */
     const char *kyc_needed;
 
     TALER_payto_hash (rcc->payto_uri,
@@ -263,12 +265,15 @@ reserve_close_transaction (void *cls,
                                       "iterate_reserve_close_info");
       return qs;
     }
-    rcc->kyc.ok = false;
-    return TEH_plugin->insert_kyc_requirement_for_account (
-      TEH_plugin->cls,
-      kyc_needed,
-      &rcc->kyc_payto,
-      &rcc->kyc.requirement_row);
+    if (NULL != kyc_needed)
+    {
+      rcc->kyc.ok = false;
+      return TEH_plugin->insert_kyc_requirement_for_account (
+        TEH_plugin->cls,
+        kyc_needed,
+        &rcc->kyc_payto,
+        &rcc->kyc.requirement_row);
+    }
   }
 
   rcc->kyc.ok = true;
@@ -296,7 +301,7 @@ reserve_close_transaction (void *cls,
 
   if (0 >
       TALER_amount_subtract (&rcc->wire_amount,
-                             &balance,
+                             &rcc->balance,
                              &wf->closing))
   {
     GNUNET_log (GNUNET_ERROR_TYPE_INFO,
@@ -314,7 +319,7 @@ reserve_close_transaction (void *cls,
                                          payto_uri,
                                          &rcc->reserve_sig,
                                          rcc->timestamp,
-                                         &balance,
+                                         &rcc->balance,
                                          &wf->closing);
   GNUNET_free (payto_uri);
   if (GNUNET_DB_STATUS_HARD_ERROR == qs)
diff --git a/src/testing/test_exchange_api-cs.conf b/src/testing/test_exchange_api-cs.conf
index 9485a724d..a746f7d24 100644
--- a/src/testing/test_exchange_api-cs.conf
+++ b/src/testing/test_exchange_api-cs.conf
@@ -27,6 +27,27 @@ BASE_URL = "http://localhost:8083/"
 # HTTP port the auditor listens to
 PORT = 8083
 
+
+[kyc-provider-test-oauth2]
+COST = 0
+LOGIC = oauth2
+USER_TYPE = INDIVIDUAL
+PROVIDED_CHECKS = DUMMY
+KYC_OAUTH2_VALIDITY = forever
+KYC_OAUTH2_AUTH_URL = http://localhost:6666/oauth/v2/token
+KYC_OAUTH2_LOGIN_URL = http://localhost:6666/oauth/v2/login
+KYC_OAUTH2_INFO_URL = http://localhost:6666/api/user/me
+KYC_OAUTH2_CLIENT_ID = taler-exchange
+KYC_OAUTH2_CLIENT_SECRET = exchange-secret
+KYC_OAUTH2_POST_URL = http://example.com/
+KYC_OAUTH2_ATTRIBUTE_TEMPLATE = "{"full_name":"{{last_name}}, {{first_name}}"}"
+
+[kyc-legitimization-close]
+OPERATION_TYPE = CLOSE
+REQUIRED_CHECKS = DUMMY
+THRESHOLD = EUR:0
+TIMEFRAME = 1d
+
 [exchange]
 
 TERMS_ETAG = 0
diff --git a/src/testing/test_exchange_p2p.c b/src/testing/test_exchange_p2p.c
index 7c3bdd57e..6eea4a0bf 100644
--- a/src/testing/test_exchange_p2p.c
+++ b/src/testing/test_exchange_p2p.c
@@ -20,11 +20,9 @@
  * @file testing/test_exchange_p2p.c
  * @brief testcase to test exchange's P2P payments
  * @author Christian Grothoff
- *
- * TODO:
- * - enable reserve close test once implementation is complete!
  */
 #include "platform.h"
+#include "taler_attributes.h"
 #include "taler_util.h"
 #include "taler_signatures.h"
 #include "taler_exchange_service.h"
@@ -454,10 +452,30 @@ run (void *cls,
                                               MHD_HTTP_NOT_FOUND,
                                               "nx-attribute-name",
                                               NULL),
-    /* FIXME: do KYC for reserve, then get actual attributes attested */
+    TALER_TESTING_cmd_oauth ("start-oauth-service",
+                             6666),
+    TALER_TESTING_cmd_reserve_close ("reserve-101-close-kyc",
+                                     "create-reserve-101",
+                                     /* 42b => not to origin */
+                                     "payto://x-taler-bank/localhost/42?receiver-name=42b",
+                                     MHD_HTTP_UNAVAILABLE_FOR_LEGAL_REASONS),
+
+    TALER_TESTING_cmd_check_kyc_get ("check-kyc-close-pending",
+                                     "reserve-101-close-kyc",
+                                     MHD_HTTP_ACCEPTED),
+    TALER_TESTING_cmd_proof_kyc_oauth2 ("proof-close-kyc",
+                                        "reserve-101-close-kyc",
+                                        "kyc-provider-test-oauth2",
+                                        "pass",
+                                        MHD_HTTP_SEE_OTHER),
+    TALER_TESTING_cmd_check_kyc_get ("check-kyc-close-ok",
+                                     "reserve-101-close-kyc",
+                                     MHD_HTTP_NO_CONTENT),
+    /* Now it should pass */
     TALER_TESTING_cmd_reserve_close ("reserve-101-close",
                                      "create-reserve-101",
-                                     NULL, /* to origin */
+                                     /* 42b => not to origin */
+                                     "payto://x-taler-bank/localhost/42?receiver-name=42b",
                                      MHD_HTTP_OK),
     TALER_TESTING_cmd_exec_closer ("close-reserves-101",
                                    config_file,
diff --git a/src/testing/test_kyc_api.c b/src/testing/test_kyc_api.c
index 8de5ee7bd..44f302c6d 100644
--- a/src/testing/test_kyc_api.c
+++ b/src/testing/test_kyc_api.c
@@ -227,7 +227,7 @@ run (void *cls,
                                               MHD_HTTP_OK,
                                               TALER_ATTRIBUTE_FULL_NAME,
                                               NULL),
-    TALER_TESTING_cmd_reserve_attest ("wallet-get-attestable",
+    TALER_TESTING_cmd_reserve_attest ("wallet-get-attest",
                                       "wallet-kyc-fail",
                                       MHD_HTTP_OK,
                                       TALER_ATTRIBUTE_FULL_NAME,
diff --git a/src/testing/testing_api_cmd_reserve_close.c b/src/testing/testing_api_cmd_reserve_close.c
index 4c243c740..63d511603 100644
--- a/src/testing/testing_api_cmd_reserve_close.c
+++ b/src/testing/testing_api_cmd_reserve_close.c
@@ -67,6 +67,18 @@ struct CloseState
    * Interpreter state.
    */
   struct TALER_TESTING_Interpreter *is;
+
+  /**
+   * Set to the KYC requirement payto hash *if* the exchange replied with a
+   * request for KYC.
+   */
+  struct TALER_PaytoHashP h_payto;
+
+  /**
+   * Set to the KYC requirement row *if* the exchange replied with
+   * a request for KYC.
+   */
+  uint64_t requirement_row;
 };
 
 
@@ -98,10 +110,19 @@ reserve_close_cb (void *cls,
     TALER_TESTING_interpreter_fail (ss->is);
     return;
   }
-  if (MHD_HTTP_OK != rs->hr.http_status)
+  switch (rs->hr.http_status)
   {
-    TALER_TESTING_interpreter_next (is);
-    return;
+  case MHD_HTTP_OK:
+    break;
+  case MHD_HTTP_UNAVAILABLE_FOR_LEGAL_REASONS:
+    /* nothing to check */
+    ss->requirement_row
+      = rs->details.unavailable_for_legal_reasons.requirement_row;
+    ss->h_payto
+      = rs->details.unavailable_for_legal_reasons.h_payto;
+    break;
+  default:
+    break;
   }
   TALER_TESTING_interpreter_next (is);
 }
@@ -178,6 +199,40 @@ close_cleanup (void *cls,
 }
 
 
+/**
+ * Offer internal data to a "close" CMD state to other
+ * commands.
+ *
+ * @param cls closure
+ * @param[out] ret result (could be anything)
+ * @param trait name of the trait
+ * @param index index number of the object to offer.
+ * @return #GNUNET_OK on success
+ */
+static enum GNUNET_GenericReturnValue
+close_traits (void *cls,
+              const void **ret,
+              const char *trait,
+              unsigned int index)
+{
+  struct CloseState *cs = cls;
+  struct TALER_TESTING_Trait traits[] = {
+    TALER_TESTING_make_trait_legi_requirement_row (
+      &cs->requirement_row),
+    TALER_TESTING_make_trait_h_payto (
+      &cs->h_payto),
+    TALER_TESTING_trait_end ()
+  };
+
+  if (cs->expected_response_code != MHD_HTTP_UNAVAILABLE_FOR_LEGAL_REASONS)
+    return GNUNET_NO;
+  return TALER_TESTING_get_trait (traits,
+                                  ret,
+                                  trait,
+                                  index);
+}
+
+
 struct TALER_TESTING_Command
 TALER_TESTING_cmd_reserve_close (const char *label,
                                  const char *reserve_reference,
@@ -196,7 +251,8 @@ TALER_TESTING_cmd_reserve_close (const char *label,
       .cls = ss,
       .label = label,
       .run = &close_run,
-      .cleanup = &close_cleanup
+      .cleanup = &close_cleanup,
+      .traits = &close_traits
     };
 
     return cmd;