KYC Requirements
Why do I need to KYC in order to be able to lend into some portfolio?
In order to be compliant with regulations in certain jurisdictions, Portfolio Managers are required to verify a user’s identity before and while doing business with them.
This is in an effort to maintain integrity of the portfolio. The KYC process is a first line of defence against fraud, sanctions evasion, and terrorist financing. Compliance with global KYC standards helps ensure the portfolio against reputational risk, regulatory fines, and even cease and desist orders.
During TrustToken’s KYC process, users will be required to provide credentials that prove their identity and address. Verification credentials can include ID card verification, face verification, biometric verification, and/or document verification. For proof of address, utility bills and bank statements are examples of acceptable documentation.
This process is important for determining users' risk and whether they can meet the Portfolio Manager’s requirements to use their services. Moreover, it’s also a legal requirement to comply with Anti-Money Laundering (AML) laws in certain jurisdictions.
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