Updated
GL-K-03
Glossary · Due Diligence and compliance
KYC - Know Your Customer
Identification when opening an account: the bank checks the passport, address, origin of funds and purpose of the account. Required everywhere. The more complex the profile, the more documents needed. The first barrier everyone passes through.
01 / In 30 seconds
The short answer
- What it is
- “Know your customer”: identification when opening an account or entering a programme
- Where it applies
- Banks, investment funds, citizenship and residence programmes, brokers
- What is requested
- Passport, proof of address, source of income, purpose of the account
- Is it one-off
- No: the bank monitors and periodically updates the data
- Can you prepare
- Yes: assemble the pack for the particular bank in advance
02 / In plain words
What KYC means
KYC (know your customer) is identification when opening an account or entering a programme. Put simply: the bank must understand exactly who you are, where you live, where your money comes from and why you need this account.
KYC is the first barrier everyone passes through. You will be asked for a passport, proof of address (usually a utility bill or a statement no older than 3 months), details of your profession and source of income, and the purpose of the account. The more complex the profile — several citizenships, business in different countries, PEP status — the more documents and questions. KYC is not one-off: the bank monitors continuously and periodically asks you to update your data.
In essence KYC is the front door, and AML the whole system behind it. Getting KYC right first time matters: confusion on the form or documents that do not match each other delay the opening by weeks.
A case from practice
A client opens an account with a bank in the UAE. For KYC they are asked for a passport, an Emirati residence visa, proof of address and an explanation of where the monthly receipts come from. One income certificate is in English without an apostille, and the bank does not accept it. A couple of weeks go on reissuing it alone, even though the client is completely “clean”.
Where KYC applies
- Opening a bank account
- Entering a citizenship or residence programme
- Registering with a broker or an investment fund
- Crypto exchanges and payment systems
- Large real estate transactions
- Periodic updating of client data
03 / What it covers
What KYC covers
Identity
- Passport or ID
- Second citizenship (if any)
- PEP status
Address and residence
- Proof of address (up to 3 months old)
- Tax residence
- Country of residence
Money
- Profession and source of income
- Expected turnover
- Purpose of the account
Next
- Ongoing monitoring
- Updating data
- Explaining large transactions
04 / How it works
How KYC works
Client questionnaire
Gathering documents (passport, address, income)
Checking and cross-checking the data
The bank’s decision
Opening an account
05 / Key facts
What you need to know
01
Every client goes through KYC, without exception
02
Proof of address is usually accepted if no older than 3 months
03
The more complex the profile (PEP, several citizenships), the more documents
04KYC is not one-off
the bank periodically asks you to update your data
05
Documents that do not match each other delay the opening by weeks
Common mistakes
- Submitting documents in different languages without translation and apostille
- Bringing proof of address older than 3 months
- Stating one thing on the form and another in the documents
- Understating or concealing real turnover and the source of income
- Not confirming the particular bank’s requirements in advance
06 / Expert advice
How to prepare in advance
Assemble the pack for the particular bank in advance: passport, recent proof of address, documents on the source of income in the required form (translation, apostille, maximum age) and a clear purpose for the account. It is important that the data on the form and in the documents match completely. Then KYC passes first time rather than dragging on for weeks.
What we do for you. BRIDGES GLOBAL prepares your KYC pack in advance for the particular bank: we tell you which documents will be accepted and in what form (translation, apostille, maximum age), and help you complete the form so that the data match and the account is opened first time.
Klara RihterBanking compliance and source of funds specialist
07 / Questions
Frequently asked questions
KYC is the identification of a particular client on entry: who you are and where the money comes from. AML is the whole system of rules against money laundering, of which KYC is a part.
Yes. KYC continues afterwards: the bank monitors and periodically asks you to update your data or explain a large transaction.
Usually a utility bill, a bank statement or a certificate no older than 3 months showing your name and address. We confirm the form requirements with the particular bank.
Often, yes: the bank asks for documents in another language to be translated and sometimes apostilled. We confirm the format in advance so that nothing has to be redone on the spot.
If the pack is assembled correctly — from a few days. Errors on the form or documents that do not match stretch the process out to weeks.
Yes. Large exchanges and payment systems also run KYC: they ask for an identity document, proof of address and sometimes the source of funds.
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