What is KYC due diligence and why do you have to do it?

KYC stands for Know Your Customer and it is the process we go through to ensure all our customers are exactly who they say they are and are not using the service for money laundering.

Under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, every Payment Service Provider must take steps to know their customer (KYC) by verifying the identity of all ultimate beneficial owners (UBO) and the source of funds.

If you are not being asked to undergo KYC due diligence, your escrow service is unlikely to be regulated and is probably acting unlawfully.