🔍 What is a KYC Update?
The KYC (Know Your Customer) update is a regulatory mechanism that allows periodic reviews of certain KYC information, including after an account has been activated.
This requirement ensures that customer information remains accurate, consistent, and up to date throughout the business relationship, in compliance with the regulatory obligations applicable to payment institutions.
📌 Why does Lemonway implement KYC updates?
✅ Regulatory compliance
Regulations require payment institutions to:
- Know their customers
- Keep customer information up to date
- Adjust the frequency of reviews according to the account risk level
KYC updates are therefore a mandatory regulatory obligation.
🔐 Security and reliability
An up-to-date KYC helps to:
- Reduce fraud and identity theft risks
- Secure financial flows
Ensure a reliable environment for all users and partners
🔄 Service continuity
If KYC information is not updated, Lemonway may apply restrictions to certain operations.
The KYC Update process helps anticipate these situations by:
- Informing users in advance
- Allowing sufficient time to complete the update
🔗 Link with Online Onboarding
The KYC update relies on the same process as the initial onboarding, through the Online Onboarding solution.
This makes it possible to:
- Use a secure, guided, and proven flow
- Provide a smooth and consistent user experience
- Ask users to only confirm or update necessary information
No new complex process is created: the KYC update is a natural continuation of the existing flow and is triggered only when necessary.
👤 Who is impacted by the KYC update?
Impacted users
- Individuals and legal entities
- Holding an active payment account
- With an ongoing business relationship with Lemonway
Non-impacted users
- Technical wallets
- Users without an active payment account (buyers, donors)
⏱ How often is a KYC update required?
The frequency depends on the account risk level, in accordance with regulatory requirements:
- High risk: every 12 months
- Medium risk: every 3 years
- Low risk: every 5 years
✅ When an update is required, a clear deadline is always communicated.
⚠️ The risk level is not visible for confidentiality reasons.
📄 What information or documents may be requested?
Requested information depends on the user profile and any declared changes:
- If information has not changed, no additional documents may be required
- In case of changes, appropriate supporting documents may be requested
- In specific cases, an enhanced identity verification (liveness) may be required
🔔 How is the KYC update managed?
Lemonway offers two management options.
🧩 Option 1: Plug & Play (managed by Lemonway)
With the Plug & Play option, Lemonway handles the sending of communication emails to end users.
These communications include:
- 📧 Notification when an update is required
- 📧 Notification in case of rejection
- 📧 Notification in case of restriction if the update is not completed on time
Emails use standard Lemonway templates.
ℹ️ No confirmation email is sent once the update is approved.
If needed, partners can handle this communication via notifications.
✅ This option is included at no additional cost.
🛠 Option 2: Manual (managed by the partner)
With the Manual option, the partner retains full control over communications with their users.
Lemonway provides partners with notifications regarding:
- Accounts requiring a KYC update
- Restrictions applied due to non-compliance
These notifications can be received:
- via webhook
- or via email
✅ This option allows:
- full control over communication
- adaptation to existing journeys and brand guidelines
- automation via API or CRM
🔁 It is possible to start with Plug & Play and later switch to the Manual option.
🚫 What happens if the KYC update is not completed?
If the update is not completed before the deadline:
- Restrictions are applied to the account
- By default, all transactions are blocked
Some exceptions may apply depending on the profile (e.g. receipt of refunds or dividends for certain crowdlending / crowdequity profiles).
Users and/or partners are informed via appropriate notifications prior to any restriction.
⏳ Processing time
Lemonway commits to a maximum processing time of 48 hours for manual KYC updates.
- Some updates may be automatically approved
- Status changes are communicated via notifications