What is Know Your Customer (KYC)?

πŸ’‘ KYC stands for Know Your Customer and refers to the obligation of financial institutions to gain and maintain sufficient knowledge of their 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 behaviors on your platform.

Note: The occasional customer, is not considered a Lemonway customer so no need to open a payment account.
πŸ‘‰ It is a guarantee of responsibility & sustainability for your business.

Verified customers (KYC2)

To ensure that your clients are compliant, and are actually who they claim to be, your customers need to provide detailed due diligence information that will be verified.

πŸ‘‰ Learn more about KYC here and discover the required KYC/KYB documents here.

Once the client has been verified and validated, their status is KYC2 and their account is operational.

Was this article helpful?
0 out of 0 found this helpful