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What is KYC & AML? Documents required for successful KYC identity verification

Recently when joining invest in ICO projects or join the exchanges To buy Tokens, you must come across phrases like: KYC, KYC verification, KYC registration or next to it is AML and this is also a required condition to participate in some Coin ICO projects. So in the end"What is KYC?","What is AML?” and what documents are required for successful KYC identity verification with ICO projects? This paragraph Cryptocurrency Blog I will go with you to find out.

What is KYC – Know Your Customer?

KYC stands for the phrase "Know Your Customer/Client"means"Understanding customers"Good"Know who the customer is“, or in the crypto space you often call it “Identity verification“. It is a standard practice in the investment industry to ensure that investment advisors identify the details of a client's risk tolerance, investment knowledge and financial position.

Sample forms of KYC protect both clients and investment advisors. With investment advice from advisors, clients will know which investment best suits their individual circumstances. And investment advisors know what clients can and can't include in their portfolios.

KYC – Understanding customers

Rule Know Your Customer (KYC) is an ethical requirement for securities operators who are dealing with clients in opening and maintaining accounts. There are two rules introduced in July 07 that need to be implemented: Financial Industry Regulatory Authority (FINRA) Rule 2012 (Know Your Customer) and FINRA 2090 (Relevance). These rules apply to protect both the broker-dealer and the client and to allow the broker and the company to treat the client fairly.

Understanding the Customer Rule 2090 stipulates that all brokers - dearlers should make reasonable efforts when opening and maintaining client accounts. It is essential to understand and keep records of each client's essential data and to determine the authority to act on behalf of the client.

The KYC rule is very important at the beginning of the relationship with the client and the broker to establish the necessary data for each client before making any recommendations. The required data are those that are effective in servicing the customer account and any special handling instructions related to the account should be taken into account. In addition, the broker-dealer needs to know who will act on behalf of the client and the broker-dealer needs to comply with all laws, regulations and rules in the securities sector.

Matching rules

Found in the FINRA Fair Practices Rule, Rule 2111 comes with a KYC rule. Matching Rule 2111 notes that a Broker-Dealer must have reasonable grounds for recommending it to a client based on the client's financial situation and needs. This responsibility means that the Broker - Dealer has fully reviewed the client's current data including the client's other securities prior to any purchase, sale or exchange of securities.

Set up a customer profile

Investment advisors and companies are responsible for understanding each client's financial situation by researching and gathering information about age, other investments, tax status, financial need, and experience. investment, investment time, payment needs and risk tolerance of the client.

SEC (USA) requires new customers to provide detailed financial information including name, date of birth, address, employment status, annual income, net worth, investment goals, and ID or Passport number identification before opening an account.

What is AML – Anti Money Laundring?

AML stands for the phrase Anti Money Laundring mean "Anti-Money Laundering” refers to a series of procedures, laws and regulations intended to prevent the practice of generating income through illegal action. Although anti-money laundering laws cover a fair number of transactions and offenses, their implications are far-reaching.


For example, regulations on AML require credit issuers or allow customers to open accounts to complete appropriate checks to ensure they are not aiding money laundering. The mandate to carry out these procedures is about organizations, not criminals or governments.

Addressing “Anti-Money Laundering – AML”

Anti-money laundering laws and regulations target activities including market manipulation, illegal goods trade, corruption of public funds and tax evasion, as well as activities intended to conceal these actions.

Money obtained illegally through actions like drug dealing needs to be cleaned up. To do so, money launderers run it through a series of steps to make it appear as if it was legitimately earned. Once there is a record to show how the money was collected, the criminals hope it will not raise suspicion.

One of the most common ways to launder money is to run it through a legitimate cash-based business owned by a criminal organization. Money launderers can also sneak money into foreign countries to deposit deposits, deposit in smaller amounts, or purchase other cash instruments. Laundromats often want to invest, and brokers will occasionally break the rules to earn larger commissions.

It is up to financial institutions to issue credit or allow customers to open accounts to investigate the customer to make sure they are not participating in a money laundering scheme. They must verify large sums of money from origin, monitor for suspicious activity, and report cash transactions in excess of $10,000. In addition to complying with AML laws, financial institutions must also ensure that clients are aware of these laws and guide people with them without prior government orders.

AML rules and regulations gained global recognition when the Financial Action Task Force (FATF) was established in 1989, setting international standards against money laundering. The purpose of enforcement groups like the FATF is to maintain and promote the ethical and economic advantage of a reliable and stable financial market.

What documents are required for KYC and AML verification?


This will probably be what many investors are interested in when participating in ICO investment, I also encountered many cases. KYC identity verification but still fail or many people do not fully understand the requirements of the project on KYC. Below I will list the necessary documents that most ICO projects require you to have in order to submit them for review:

  • Identity card (ID card) or Passport (Passport)
  • Declare Full Name, Name according to the name on the ID card or Passport in the request form
  • Proof of residential address valid for 3 months such as electricity and water bills, banks, internet, ..
  • Driver's License (Many ICO projects you can use instead of ID)
  • Declare the income from the beginning (Depending on each ICO project will love or not)

These documents are all in Scan version, that is, you need to take a photo to prepare to upload for any ICO project that requires KYC verification, with ID or Passport you take both front / back, and some The project also requires photos.”Selfie holding ID card or Passport“. Every project will have a method KYC registration varies, but basically the documents you need to prepare are the ones above.


Here is the article "What is KYC & AML? Documents required for successful KYC identity verification"Hopefully to bring readers the most useful information. This is also a necessary condition when participating in ICO projects, so if you are an investor and are investing in ICO coin projects, you should prepare the documents I mentioned above in advance. If you find this article useful, please give it a thumbs up Cryptocurrency Blog one Like, Share , and 5 star rating below.

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