The KYC pack: what banks and counterparties ask for

What KYC is for

Know-your-customer, or KYC, is the process through which a bank, a counterparty or a service provider checks who it is dealing with. Banks have legal duties to do it. Trading companies do it voluntarily because it reduces the chance of a bad deal. For you, a good KYC pack means fewer delays, because the same set of documents answers most requests.

What a company pack usually includes

• Certificate of incorporation or registration extract, and a recent good-standing or commercial register extract where available.
• Articles of association or equivalent, showing the company's purpose and signing rules.
• List of directors and of the people authorised to sign, with their specimen signatures.
• Ownership structure showing the ultimate beneficial owners, usually those holding a stated share or control.
• Passport or national identity copies for directors and beneficial owners, and proof of residential address where asked.
• Proof of business address, such as a utility bill or lease.
• Bank reference letter or a bank details confirmation on the bank's letterhead.
• Tax registration or trade licence where relevant to the product and country.
• Company profile with the main activity and, for traders, a list of products and markets.

For an individual or small trader

If you trade in your own name, expect to provide identity, proof of address, source of funds in general terms and a bank reference. If you act as an introducer, expect to show the agreement that gives you the role and the identity of the person who gave it to you.

Beneficial ownership

Banks and many counterparties want to know the real people behind a company, not only the registered shareholders. If a company is owned by another company, the chain continues until reaching people. A clear ownership chart, signed by a director, saves repeated questions. Rules on thresholds and registers differ by country.

Getting the documents ready

• Collect everything in one folder and name files clearly.
• Make sure copies are legible, complete and current, with recent dates where a date is required.
• Check that names and addresses are spelled the same way in every document.
• Add certified or notarised copies where the receiving party requires it.
• Note expiry dates, for example of passports, and diary the renewals.

Sharing documents safely

KYC documents contain personal data and are valuable to fraudsters. Share them only with parties you have a real reason to deal with, ideally after you have checked their identity too. Send them in a way that you can trace, mark a copy with the purpose and date, such as a watermark saying the document was supplied for a particular deal, and never post them in a public place. If you think a document has been misused, tell the issuing authority and your bank.

Asking for the other side's pack

KYC works in both directions. Before you ship or pay, ask for the counterparty's registration, signatory, bank letter and site details, and check them against public registers and against each other. The counterparty checklist article describes the checks in order. A party that is happy to be checked is usually a better partner.

On Tonport

Members can upload registration documents for review, and a verified badge means an administrator reviewed them. Company profile pages show what a member chooses to publish. Treat verification as one input to your own checks, and use the Introductions channel to meet people before the first deal.

Frequently asked questions

How often should KYC documents be updated?

Whenever something changes, such as directors, ownership or address, and in any case before expiry dates. Many banks review at set intervals.

Are copies of passports always required?

Banks and many counterparties ask for them for directors and beneficial owners. You can ask what exactly is needed, and how it will be stored, before sending.

What is a beneficial owner?

A natural person who ultimately owns or controls a company, directly or through other entities, as defined by the rules of the country concerned.

Is a KYC pack the same as a company profile?

No. A profile describes what the company does. A KYC pack is the set of legal and identity documents behind it.