What You Need to Know About KYC Verification


KYC, or Know Your Customer, is a process of identifying and verifying the identity of customers. It is an essential part of any financial institution that handles money for its customers. As anyone who has ever dealt with financial institutions knows, this can be a tedious process–especially when you’re constantly switching banks. 

Here are some tips to make the KYC process go smoothly.

Who Needs KYC Verification?

Financial institutions, real estate agencies, investment brokers, and car dealerships require KYC verification for the customers they serve. However, the requirement is not limited to this kind of business. For example, any web host or payment processor can require KYC verification for its customers, as well as many other types of businesses. This is because these companies was to ensure they are compliant with anti-money laundering (AML) policies. 

What Do You Have to Know About KYC Verification?

Before a business starts signing up customers, they need to know who they are dealing with. They may think that because they only deal with customers in their home country that the verification process will be easy. However, the compliance rules differ depending on the country. Businesses dealing with finances will have to gather information from other countries in which they do business to properly comply with KYC rules, even if they are not based there.

Documents You Need to Submit

The most basic KYC document you can submit is a copy of your passport or driver’s license. This will serve as an immediate reference in case they have a question about your identity or about the transaction you are making. Most banks will require you to provide some sort of proof of identities such as a photocopy of your driver’s license or even a picture ID.

You should also bring plenty of cash–at least a couple hundred dollars–to show to the branch manager. They will need to make sure you have the cash and also the receipt from where you withdrew the money. Some banks have even gone as far as having a machine where you can deposit cash and have it deposited at a later date.

Tips for a Faster KYC Process

Before you make the transfer, you will need to complete a KYC verification process that verifies your identity. This can be sending a document that you send to your bank, or one that you download onto your computer. If you print out the document from your bank, you can store them in a folder on your computer. This way, you will always have copies of your documentation, just in case you need to make a return to the bank.

Make sure you keep all your account information and forms organized. This will allow you to review them and make corrections as you go, without having to go back and fix mistakes that occurred in the past. It also gives you an official record of how long you’ve been with the bank.