Know Your Customer (KYC)
The identity- and integrity-verification procedure that banks, authorities and program agents run to confirm who an applicant is and where their funds come from.
Know Your Customer (KYC) is the procedure through which banks, government bodies and authorized program agents establish a client's identity and verify the information the client provides. KYC grew out of anti-money-laundering and counter-terrorist-financing requirements and applies, among other areas, to investment migration.
In practice KYC involves collecting and checking identity documents, confirming the residential address, establishing the source of funds and screening against politically-exposed-person and sanctions lists. The scope and depth of the checks depend on the risk level, the jurisdiction and the requirements of the specific program.
In CBI/RBI procedures KYC is the baseline element of broader due diligence: it answers the question of who the client is, while enhanced review assesses risk and reputation. KYC is not always one-off — banks and authorities may periodically review a client's data (ongoing monitoring).
“People treat KYC as a form you fill in once. It gets refreshed and cross-checked, so keep your answers to the agent, the bank and the application itself identical — small contradictions read as concealment.”
Susana Ablyamitova — LawyerFAQ
Why does a bank run its own KYC when the program has already vetted me?
Every regulated institution has to identify the client itself and cannot rely on another party's conclusions. Clearance under a migration program does not carry over to a bank or other financial intermediary.
Which documents are usually requested for KYC?
Typically identity documents, proof of address, details of how assets are owned and evidence of the origin of funds. The exact list is set by the institution's internal policy and by its regulator.
What if I decline to disclose part of the information?
The institution is generally entitled to refuse the account, suspend transactions or end the relationship. Incomplete disclosure can also lead to refusal on a migration application.
How is my data stored, and who can access it?
Records are kept for the period required by anti-money-laundering legislation and disclosed to competent authorities in the cases the law provides for. The protection regime follows the law of the relevant jurisdiction.
Must I disclose every citizenship and tax residency I hold?
Yes. Banks and licensed agents ask for the full list, including citizenship acquired through an investment program, and omissions are treated as a significant risk factor. A second passport does not remove the disclosure duty.