What KYC requires

KYC is the process of verifying the identity of a client before establishing a business relationship — and periodically throughout it. In the US, KYC requirements are primarily established by FinCEN (Financial Crimes Enforcement Network) under the Bank Secrecy Act (BSA) and the Customer Due Diligence (CDD) Rule.

The four core CDD requirements are:

• Customer Identification Program (CIP) — verify the legal name, date of birth, address, and ID number of individual customers
• Beneficial Ownership — for legal entities, identify natural persons who own or control 25%+ of the entity
• Understanding the nature and purpose of customer relationships
• Ongoing monitoring for suspicious transactions

What AML requires

AML refers to the broader set of controls a firm must maintain to detect and report money laundering — the process of making illegally obtained funds appear legitimate. AML programs include KYC as a foundation, and add transaction monitoring, suspicious activity reporting (SARs), and record retention requirements.

Who is subject to KYC / AML

• Banks and credit unions (including BSA requirements)
• Broker-dealers and registered investment advisers (SEC/FINRA rules)
• Insurance companies (for certain products)
• Money services businesses (MSBs)
• Legal professionals handling client funds (in some jurisdictions)

The data KYC intake collects

A standard KYC intake form for an individual client typically collects:

• Full legal name
• Date of birth
• Government-issued ID type, number, and issuing country
• Residential address and country of tax residence
• Citizenship and nationality
• Employment status and occupation
• Source of funds and source of wealth
• Politically exposed person (PEP) status
• Beneficial ownership information (for entities)

Enhanced due diligence (EDD)

Certain clients trigger enhanced due diligence — a deeper level of scrutiny. EDD is typically required for PEPs, clients from high-risk jurisdictions, clients in high-risk industries, and any situation where standard CDD doesn't adequately explain the nature of the relationship. EDD involves additional documentation, senior management approval, and closer ongoing monitoring.

How document automation helps KYC compliance

Manual KYC intake — paper forms or emailed questionnaires — creates data quality risks. Clients skip fields, handwriting is misread, and data is re-entered into systems with errors. Document automation addresses these risks:

• Guided interviews ensure every required field is completed before submission
• Conditional logic shows enhanced due diligence questions only when triggered (e.g. PEP status)
• Collected data maps directly into your PDF intake form — no re-keying
• E-signature with OTP verification creates a verified, signed intake record
• Audit trail records who submitted, when, and from which device — for compliance documentation
• Webhook or API integration can push submitted data directly into your CRM or case management system