Find answers to common questions.
1. What is KYC?
KYC stands for "Know Your Customer".
It is the process of identifying and verifying clients, shareholders, directors and beneficial owners and understanding the nature and purpose of the business relationship.
2. What is AML/CFT?
AML/CFT stands for Anti-Money Laundering and Countering the Financing of Terrorism.
It refers to the regulatory framework and procedures designed to prevent businesses and financial systems from being misused for illicit activities.
3. Why do I need to provide identification documents?
Identification documents allow corporate service providers, banks and other regulated institutions to verify the identity of individuals involved in a company.
This forms part of the applicable KYC and AML requirements.
4. What is a beneficial owner?
A beneficial owner is generally the natural person who ultimately owns or controls a company or other legal entity.
Beneficial ownership information must be properly identified and declared as required by applicable legislation.
5. Why do I need to disclose my beneficial owners?
Beneficial ownership transparency is an important part of the international framework for preventing money laundering, terrorist financing and other financial crime.
Companies and service providers must comply with applicable beneficial ownership requirements.
6. What documents may be requested for KYC?
Documents may include passports or identification documents, proof of residential address, corporate documents, ownership charts, information about business activities and evidence concerning the source of funds or wealth.
Additional information may be requested depending on the risk profile and structure.
7. What is source of wealth?
Source of wealth refers to how an individual or entity accumulated its overall wealth.
This can include business ownership, employment income, investments, inheritance or other legitimate sources.
8. What is source of funds?
Source of funds refers specifically to where the money used for a particular transaction or investment originates.
Supporting documents may be requested to verify the origin and legitimacy of the funds.
9. What are FATCA and CRS?
FATCA and CRS are international information-reporting frameworks relating to financial accounts and tax residence.
Companies and financial institutions may have reporting or classification obligations depending on their circumstances.
10. Can Baldo assist with AML/KYC compliance?
Yes. Baldo Corporate Services can assist clients with applicable corporate compliance, KYC documentation, beneficial ownership information and AML/CFT-related administrative requirements.