What is KYC?
KYC stands for Know Your Customer, or Know Your Client. It's governed by "The Money Laundering Regulations 2017", and it's the process of verifying the identity of your clients, and assessing how suitable they are for the product or service that you may be offering. It also looks at the risk of your clients doing anything illegal.
So what this means is you'll need to obtain a proof of address and identification certified by a solicitor from each of your clients.
So in a property context, this means that you'll need to do this as part of your AML or your Anti Money Laundering, which you will need to carry out before you draw down on any funds from any of your investors.
Examples of when larger companies carry out KYC checks are:
- Client Onboarding
- User Authentication / Registration.
- Processing of high-profile transactions.
- Re-verification of existing users.
- To ensure regulatory compliance.
- As a replacement of outdated authentication mechanisms.
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