Know Your Customer (KYC)

💡 KYC stands for Know Your Customer and refers to the obligation for financial institutions to gain and maintain sufficient knowledge of its customers.

KYC is a regulatory obligation for Payment Institutions, as per the European Directive 2015/849 of the European Parliament and the Council of May 20, 2015, on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing.

While it might seem restrictive at first, it should be at the heart of your business concerns and can become a key competitive advantage as it dramatically helps reduce fraud as well as reprehensible behaviours on your platform. 👉 It, therefore, is a guarantee of responsibility & sustainability for your business.

There are 2 levels of KYC:

  • Occasional customers (KYC1)
  • Verified customers (KYC2)


Occasional customers

Occasional customers are considered as one-time customers who do not enter in a business relationship with Lemonway, thus do not require the implementation of specific control measures, due to the punctual nature of the transactions they carry out on your platform.

Thus, according to Article R561-10 of the Monetary and Financial Code (in French 🇫🇷) and the guidelines of the Prudential Control and Resolution Authority (in French 🇫🇷)), it is not necessary for Lemonway to apply specific due diligence measures for this type of customer.

Occasional customers can perform:

  • A single transaction for an amount less than or equal to €500
  • A maximum of 3 transactions over the last 12 months for a cumulative amount less than or equal to €1000

Note

The thresholds mentioned above might be subject to change.

💡 When a "payer account" holder reaches one of the above thresholds, an API notification 🔔 is sent to you so that the customer can provide the necessary documents for KYC2 verifications related to their payment account.

 

Verified customers (KYC2)

👉 Learn more about KYC2 here and discover the required KYC/KYB documents here.

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