Know Your Customer services

Know Your Customer (KYC) mandates that companies who are active within the financial services sector must carry out due diligence on clients to verify their identity and to prevent identity theft, fraud, money laundering and terrorist financing.

TMF Group, with over 6,500 experts in more than 80 countries, is at hand to help you streamline your KYC journey and minimise its impact on the way you do business.

Stringent laws and regulations imposed by governments globally have forced companies to take a hard look at their operations and the relationships they foster in order to proactively manage their risk exposure. Country specific requirements combined with international regulations such as Anti-Money Laundering (AML), Alternative investment Fund Managers Directive (AIFMD), the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) all have KYC requirements affecting companies worldwide.

KYC Requirements

Companies are required to follow appropriate compliance procedures to meet increasing regulatory demands. For businesses on a global scale, a robust compliance framework is a must and it should make sure that each territory has sufficient management oversight in order to fully meet both local and international requirements.

Companies are expected to screen new clients according to a range of criteria. For example: whether a client has sanctions against them, is present on watch lists or considered a politically exposed person (PEP). Furthermore, KYC procedures have to be followed which entail verification checks for individuals via, but not limited to, a passport check and corporate registries are used to determine Ultimate Beneficial Ownership of any businesses with which they deal. In summary, this results in a lot of official paperwork that needs to be requested, examined and filed correctly and promptly, requiring time and local knowledge.

Consequences of Non-Compliance

When regulators suspect companies to be non-compliant with KYC obligations or when companies miss deadlines, companies risk lengthy investigations by authorities. Under the scope of AML, AIFMD, FATCA and CRS, companies risk high fines if they do not comply in a correct or timely manner. These fines, large in nature and growing, can be the least of the problems faced as curtailment may be placed on an organisations ability to sell specific products or services. In some countries, non-compliance can even result in imprisonment for those responsible, ranging from 5 to 20 years depending on the nature of the offence. Alongside these, often harsh, penalties, non-compliance with KYC requirements can heavily damage the public image of a company.

TMF Group’s KYC Compliance Services

In-house compliance departments are often under resourced and overburdened to cope with the constantly changing regulatory requirements whilst the historically manual processes many rely on are inefficient and risky. Moreover, implementing an automated process is often too costly.

TMF Group provides KYC compliance services as part of its Investor Compliance capabilities. We offer an independent assessment on compliance with KYC obligations (AML, AIFMD, FATCA and CRS) and have built our own database solution to manage and maintain the process. Through our software we provide clients with an easy to use, automated and safe way to stay compliant with KYC requirements.

We assist clients in four areas:

  • Customer identification, verification and due diligence / KYC requirements and screening
    Clients provide us with KYC compliance documents via our online portal. TMF Group performs due diligence (identification, information collection, sanction list screening, UBO check and PEP check). Results are reported back to the client.
  • Registration and maintenance of identification / KYC and due diligence documents
    Due diligence information is filed into our secure database for future inspection by clients or regulators (if required). We also facilitate the registration in accordance with local regulations such as EU law on UBO registries.
  • Periodical re-assessment and updates
    Dependant on the risk rating, we are able to perform periodical reviews of the due diligence information taking into account current regulations and the client’s requirements. Furthermore, we perform ‘event checks’ when events occur that could, or do, affect the risk assessment of your clients. This helps ensure the accuracy of KYC files at all times.
  • KYC reporting
    In line with AML, AIFMD, FATCA and CRS TMF Group has established a service to prepare and transmit KYC reports on reportable accounts, related financial account information and personal information.

TMF Group’s track record of success in delivering compliance services to businesses and our truly global presence allow us to manage KYC processes efficiently. We use the same system and tools to perform our own KYC checks and we have a straight forward fee structure which can easily be transferred to your end user when needed.

Should you be interested in our services or have any questions, please fill in our ‘make an enquiry’ form and we will get in touch with you as soon as we can.

Case Studies

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