KYC or Know Your Customer is an important set of guidelines that anyone facilitating a transfer of money must follow. It is designed to protect against money laundering and other illegal financial activity.
In order to comply with KYC guidelines, a money transmitter must collect certain information from its customers. This includes full name, date of birth, residential address, and identification information such as a passport or driver's license. The money transmitter must also verify the customer's identity using independent sources.
When it comes to private and alternative asset investing, there are multiple parties involved in each transaction including the investors, the deal manager, and the founder/operator raising capital. Having all of those parties KYC’d allows you to move funds around more freely between them knowing all parties have been identified and cleared. Combine that with a digital platform, and we can keep a data-driven record of all of those transactions which will help simplify tax and accounting reporting to remove another layer if friction from the process.
For founders raising capital from managers who utilize SPVs, you will know that the investors in their syndicated vehicle have been through a rigorous KYC process by credible firms in the industry. This gives the founder more comfort that the investors have been checked and are cleared.
At Syndicately, we make investor, manager and founder onboarding and KYC simple and once completed, allowing our users to have the freedom to customize and execute private transactions on their terms and on their timeline. Book a demo today to see just how easy KYC can be.