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.
- 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
In plain words
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.
Where KYC applies
What KYC covers
- Passport or ID
- Second citizenship (if any)
- PEP status
- Proof of address (up to 3 months old)
- Tax residence
- Country of residence
- Profession and source of income
- Expected turnover
- Purpose of the account
- Ongoing monitoring
- Updating data
- Explaining large transactions
How KYC works
- 01Client questionnaire
- 02Gathering documents (passport, address, income)
- 03Checking and cross-checking the data
- 04The bank’s decision
- 05Opening an account
What you need to know
- Every client goes through KYC, without exception
- Proof of address is usually accepted if no older than 3 months
- The more complex the profile (PEP, several citizenships), the more documents
- KYC is not one-off: the bank periodically asks you to update your data
- 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
What this means for a BRIDGES client
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.
Frequently asked questions
01 /How does KYC differ from AML?
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.
02 /Can documents be requested after the account is opened?
Yes. KYC continues afterwards: the bank monitors and periodically asks you to update your data or explain a large transaction.
03 /What proof of address is acceptable?
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.
04 /Is a translation and apostille needed?
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.
05 /How long does KYC take?
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.
06 /Do crypto exchanges run KYC?
Yes. Large exchanges and payment systems also run KYC: they ask for an identity document, proof of address and sometimes the source of funds.
See also
Read next
This material has undergone editorial review by BRIDGES.
Pass KYC first time?
We will prepare the document pack for the particular bank and help you complete the form so that the account is opened without delays.