All you need to know about KYC

Summary
What is the average KYC verification time?
What is a joint payment account and how does it work?
Which documents are needed to convert a payment account to KYC2?
Natural person: individual
Natural person: joint
Legal entity: unlisted company

Legal entity: company listed in an EU country or equivalent third country
Legal entity: association
Legal entity: self-employed
Legal entity: government authority
Legal entity: trust or foundation
Legal entity: skilled trades
Legal entity: Limited Liability Agricultural Company
Legal entity: investment funds
How are the ultimate beneficiary owners of a company identified?
What are the main statuses of a KYC document?
How can I find out why a KYC document has been rejected? 
How can I be notified of a change to the KYC status of a payment account/document?

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For a detailed definition of KYC, please consult our Glossary.

What is the average KYC verification time?

The typical standard turnaround time for checking payment account KYC documents is 24 hours for a payment account for a natural person and 48 hours for a payment account for a legal entity.
Please contact us If you would like your KYC documents to be processed more quickly (different SLAs available: <1H, <4H, custom).

What is a joint payment account and how does it work?

A joint payment account is a payment account opened in the name of 2 or more persons, to/from which each of the joint holders is permitted to deposit/withdraw funds.
The process for opening a joint payment account is identical to the process for opening a regular payment account, except that the account holder must be registered as a joint account holder. The following documents are required to convert a joint payment account to KYC2 status:

  • Current identity document for each of the joint account holders
  • Proof of residence less than 3 months old in the name of the joint account holders

NB: Bank statement document will be requested for all outgoing transfer requests.

Which documents are needed to convert a payment account to KYC2?

To convert a payment account to KYC2 status, the KYC documents must be uploaded in the relevant payment account and reviewed by our KYC experts.
The standard documents to be provided for each type of payment account are listed below:

Natural person: individual

  • A current identity document (double-sided identity card, double-sided residence permit, passport) for the holder of the payment account. 
  • A second current identity document (passport, National Identity Card, driving licence, most recent tax assessment notice, residence permit, family record book, civil partnership registration receipt, 'carte vitale’ health insurance card) for the holder of the payment account or a tax assessment notice issued within the last 12 months

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Natural person: joint

  • A current identity document (double-sided identity card, double-sided residence permit, passport) for each of the joint holders of the payment account.
  • A second current identity document (passport, National Identity Card, driving licence, most recent tax assessment notice, residence permit, family record book, civil partnership registration receipt, 'carte vitale’ health insurance card) for each joint holder of the payment account

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: unlisted company

  • A current identity document (double-sided identity card, passport) for the natural person representing the company holding the payment account. 
  • A current identity document (double-sided identity card, passport) for each beneficial owner holding 25% or more of the company holding the payment account. 
  • A KBIS (extract from the company register) less than three months old for the company holding the payment account
  • The signed Articles of Association of the company (as well as the CERFA n°2035-F, or the tax return, or the document showing a company's beneficial owner from the Commercial Court Registrar's Office, or a letter signed by the company's legal representative if the capital structure is not stated in the Articles of Association)
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country.

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: company listed in an EU country or equivalent third country

  • A current identity document (double-sided identity card, passport, driver's licence) for a natural person authorised to open a payment account on behalf of the company.
    [If not specified on the KBIS, the position of the natural person authorised to represent the company must be publicly verifiable (e.g. LinkedIn)]
  • A KBIS (extract from the company register) less than three months old for the company holding the payment account
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country (Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa, South Korea, Switzerland, United States).

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: association

  • A current identity document (double-sided identity card, passport) for the natural person representing the association holding the payment account.
  • A copy (less than one year old) of the minutes of the last general meeting of the association holding the payment account
  • The Articles of Association (signed by the CEO, general secretary or treasurer) of the association holding the payment account
  • The issue of the JOAFE (Official Journal of Associations & Corporate Foundations) listing the association that holds the payment account.
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country (Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa, South Korea, Switzerland, United States).

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: self-employed

  • A current identity document (double-sided identity card, passport) for the sole trader holding the payment account. 
  • A second current identity document (passport, National Identity Card, driving licence, most recent tax assessment notice, residence permit, family record book, civil partnership registration receipt, 'carte vitale’ health insurance card) for the holder of the payment account or a tax assessment notice issued within the last 12 months
  • An INSEE registration document dated within the last three months for the holder of the payment account or a document certifying registration with the Chamber of Commerce (for sole traders carrying out a commercial activity)

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: government authority

  • A current identity document (double-sided identity card, passport) for the natural person authorised by the government authority holding the payment account.
  • A mandate granted by the government authority holding the payment account to the natural person acting on its behalf
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country (Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa, South Korea, Switzerland, United States).

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: trust or foundation

  • A current identity document (double-sided identity card, passport) for the natural person representing the foundation holding the payment account.
  • An official document certifying that the natural person identified is indeed authorised to represent the foundation and to manage the payment account concerned
  • The issue of the JOAFE (Official Journal of Associations & Corporate Foundations) listing the foundation that holds the payment account.
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country (Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa, South Korea, Switzerland, United States).

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: skilled trades

  • A current identity document (double-sided identity card, passport) for the skilled tradesperson holding the payment account.
  • Proof of residence (electricity bill, water bill, landline or mobile phone bill, gas bill, rent statement, home insurance certificate, council certificate issued by the town hall, tax assessment notice less than one year old) less than three months old for the tradesperson holding the payment account.
  • A Trade Register Certificate less than three months old for the tradesperson holding the payment account
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country (Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa, South Korea, Switzerland, United States).

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: Limited Liability Agricultural Company

  • A current identity document (double-sided identity card, passport) for the CEO or treasurer of the LLAC holding the payment account.
  • A current identity document (double-sided identity card, passport) for each beneficial owner holding 25% or more of the LLAC. For citizens from outside of the European Union, a second identity document (residence permit, driving licence, 'carte vitale' health insurance card) will be required.
  • A Trade and Companies Register Certificate less than three months old for the LLAC holding the payment account
  • The signed Articles of Association for the LLAC holding the payment account
  • A copy of the notice in the Bulletin Officiel des Annonces Civiles et Commerciales/BODACC (Official Bulletin of Civil and Commercial Announcements)
  • [CROWDFUNDING PARTNERS ONLY] If the holder of the payment account is also the project leader, a document describing the project must be submitted as soon as one of the two following conditions is met: the amount of the project exceeds 100K EUR equ. and/or the funds collected are used to finance a project outside of the European Union or equivalent third country (Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa, South Korea, Switzerland, United States).

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

Legal entity: investment funds

  • Incorporated Funds

- Kbis less than three months old
- Signed Articles of Association
- Current national identity card for a legal representative of the fund

  • Unincorporated Funds (UIF)

- Fund management regulations
- Kbis of the management company 
- Current national identity card for a legal representative of the management company

NB: Bank statement document will be requested for all outgoing transfer requests. Please check our article All you need to know about withdrawing funds from a payment account for more information.

How are the ultimate beneficiary owners of a company identified?

According to the FATF (Financial Action Task Force), "beneficial owner means the natural person(s) who ultimately owns or controls a company and/or the natural person on whose behalf a transaction is carried out. This also includes persons who ultimately exercise effective control over a legal entity or legal structure."
At Lemon Way, a natural person is regarded as the beneficial owner of a company when he owns more than 25% of the company's shares.

BeneficiaryEN.jpg

What are the main statuses of a KYC document?

The main statuses of a KYC document are:

  • Received, waiting to be processed: the default status of a new document, meaning it has not yet been processed by our KYC experts.
  • Accepted: status confirming the approval/acceptance of the document (where all the documents in a payment account have been accepted but there are documents missing, the payment account will remain on KYC1)
  • Illegible: status used when the document provided is incomplete or of too poor quality to be understood by our KYC experts
  • Expired: status used when the document is no longer valid (expired ID, proof of residence more than 3 months old, etc.)
  • Wrong type: status used when the document provided is not the one expected (e.g. a driver's licence instead of an ID card or passport)
  • Wrong recipient: status used if the holder of the payment account does not correspond to the person named in the document concerned (e.g. proof of address in the name of Mrs Y, but payment account in the name of Mr X)

You have the option of replacing any document pending processing with a new document, with the exception of documents that have a status of Received.
You can also set up automatic notifications from your dashboard (for more information, please see the section on How do notifications work? in the Settings and options article) to be sent when the status of a document and/or payment account changes.

How can I find out why a KYC document has been rejected?

The reasons that our KYC experts reject a document are always explained in the notes of the relevant document.
This reason is not shared with your customers, and is accessible from your dashboard in the document concerned.

How can I be notified of a change to the KYC status of a payment account/document?

You can also set up automatic notifications from your dashboard (for more information, please see the section on How do notifications work in the Settings and options article) to be sent when the status of a document and/or payment account changes.

 

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